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10 Banks Appropriated Property Worth GEL 86 Million in the First Two Quarters of 2014

During 2014 the number of records in the debtor’sregistry increased by 33 000 – if in 2013 in total  94474 people were listed  in the registry, and as of September 1, 2014 – 127 503.

Since 2010, malicious defaulters on bank debt are recorded in a single database of debtors, and everyone who is in this  list is denied the right to dispose the  property, then with high probability it will be sold at auction to repay the debt.

In addition, banks are required to freeze the accounts of all persons registered in the debtor’sregistry- we are talking about any accounts – payroll, pension, credit, deposit, etc.

Over the past 3 years the Enforcement of Judgments Office sold 3 671 real estate objects at auction, including 1 272-  in 2011, 1 228 –  in 2012, 1 171- in 2013.

In  two quarters of 2014 the top 10 commercial banks have appropriated  property worth GEL 86. 3 million in payment of debts.

According to experts, the property received by all banks in this period could exceed  GEL 100 million.

Thy expert Lia Eliava believes that the process of debt accumulation will slow down only after the real economy and the living standards of citizens begin to grow in the country.

“The solvency of the population is not growing, and the rate of income growth has not kept up with inflation, so people take out loans, but cannot pay them. In the backdrop of lack of growth in the real economy ,  income level will not grow. So we should expect further growth in the list of debtors, “- she says.