All Banks of Association of Banks Join Loan Annulment Initiative

President of the Association of Banks Aleksandre Dzneladze has stated that all banks of the Association joined the initiative of annulling loans, a recent government initiative which envisages writing-off the loans of 600,000 black-listed Georgians.

Dzneladze said all 13 member banks of the Association signed the memorandum with Cartu Foundation, a fund owned by ruling Georgian Dream (GD) founder and chair, billionaire Bidzina Ivanishvili and is ready to cover the total amount of such debts, reaching 1.6 billion GEL.

“So far the process of making the list of black-listed customers is underway. The main banks have already identified the individuals and sent lists to Cartu. The debts will be purchased by the foundation on given dates,” he added.

The commercial institutions had negotiations with Cartu and reached an agreement whereby Cartu will take responsibility for the loans of black-listed people in banks whose loans do not exceed GEL 2000. 

Of the total 600,000 people, 150,000 are socially vulnerable. 

In addition, 12 financial organizations added they would write-off debts of the socially vulnerable people without asking for compensation from Cartu.

A website will be created where the people will be able to check if their loans were written-off.  

The process of annulling people’s debts will take place from December 15 to December 31.

By Thea Morrison

Photo source: 1TV

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