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Bank credits of the disaster-affected people will be written off

By Tea Mariamidze
Monday, June 22
Consumer loans of the disaster-affected people are likely to be written off.

The recent research showed that 113 disaster-affected families have different kinds of loans, the total of which is 400,000Gel.

The representatives of seven banks met with the Vice-Mayor of Tbilisi Dimitri Kumsishvili and business ombudsman Giorgi Gakharia on June 18 to discuss the issue.

Kumsishvili stated that commercial banks are willing to provide certain benefits, including the repayment obligations of consumer loans for victims of the flood and they will release a public statement regarding this in the near future when the process of counting the loans is finished.

The banking sector has not made any statements but continues to meet with the affected citizens.

According to the President of the Association of Banks, Giorgi Gvasalia, 80 % of the loans have already been counted, but the banks have not decided yet what structure will be used to solve this problem.

“The banks will use an individual approach towards the affected people, but it depends on the amount of loss and the loan itself; the consumer loans will be totally written off - as for other kind of loans, such as business and mortgage loans, the form of benefits has not been decided yet,” he said.

Gvasalia also stated that in order not to make problems in the banking sector, the total sum of loans will be distributed among the banks.

Negotiations are underway with private mortgage and micro-financial institutions too.

The Head of the National Bank of Georgia Giorgi Kadagidze, the most optimal is to use an individual approach towards such citizens.

“In cases where there is zero solvency, the loans - especially consumer ones - should be written off. In other cases, a serious benefit will be the deferral of loans or their reconstruction,” said Kadagidze.

Negotiations are underway with private mortgage and micro-financial institutions too.

It should be mentioned that due to the heavy rain and subsequent landslide, the massive flood of river Vere hit Tbilisi on June 13, claiming the lives of 19 people and leaving hundreds homeless. Three people are still missing.