Bad loans in Georgia
By Messenger Staff
Tuesday, March 2According to existing information there are around 270,000 bad loans in Georgia and around 3,000 legal entities have bad loans to their name. Most probably these entities have no future and their collateral will be seized and sold at auction. Analysts think however that this will not be done before the local elections, and further, there may even be promises that these debts will be written off, but after the election the debts will still have to be paid.
Around 80% of bad loans owed to the banks are under GEL 5000 and are owed by small and medium-sized businessmen. Those who are blacklisted for having a bad loan will not be able to take out further bank loans for seven years, further complicating the situation.
Analysts think that not only the debtors should be blamed for this situation but the banks as well, because until the 2008 August war banks were issuing loans without due care and attention, encouraging people to take out loans rather irresponsibly.