Economic Press Monitor

IN THIS ISSUE:

National Bank of Georgia reported that Georgian banks’ overdue credits (for 90 and more days) have reduced in September by 6.7 million lari, to 397.6 million lari, the magazine reports.

Overdue credits made up 1.6% of banks’ total loan portfolio.

Georgia’s Prime Minister Mamuka Bakhtadze declared that the opposition wanted that write-off of debts of citizens, who are registered in the black list, “was perceived as their idea”.

On November 18, presidential candidate from united opposition Grigol Vashadze (the second round of elections will take place on November 28) declared that the government has to pay debts of those citizens, who are registered in the black list of debtors, while on November 19, the initiative in connection with excessive indebtedness was presented by the Premier.

While commenting on the governmental initiative on write-off of debts of those citizens, who are registered in the black list of debtors, economist Akaki Tsomaia specifies that very dangerous precedent has been created. “Why the good payer has to have now a desire to pay credit, when the government can write off a debt in the eve of elections”, he declares.

Lado Gurgenidze, chairman of supervisory council of online credit company Vivus, refuses write-off of debts to citizens, the newspaper reports.

As Georgia’s Finance Minister Ivane Machavariani declared, the company “for reasons that are unknown for me, has stated a refusal” to participation in the governmental initiative, which envisages write-off of debts of those citizens, who are registered in the black list of debtors.

Sakartvelos Banki (Bank of Georgia) establishes already the fourth insurance company, the newspaper reports.

At the joint meeting, Insurance Companies Association and Insurance Union estimated the mentioned innovation as continuation of banks’ expansion policy and developed appeal to the government, State Service for Insurance Supervision and the Parliament, the article says.