A few months ago, the National Bank of Georgia (NBG) banned commercial banks to own non-core assets – construction, tourism, and other companies.
After that, banks were quick to say that they have fulfilled this decision and abandoned these assets, however, “Commersant” reports it was formally. In particular, construction companies created by banks still continue to maintain contact with them, which is evident by their offers to clients. Accordingly, the development companies are still complaining about the banks. Besik Tkhelidze, the founder of “Atori” company, says that nothing has changed in this regard, and the new law was purely formal.
“The bank should not possess, for example, a construction company, as it begins to compete with other developers, does not give them loans, while provides its own company with financial resources on highly concessional terms, respectively, competition is broken. For example, “TBC Bank” categorically denies that it is a founder of construction company “Lisi Development”, but in fact the bank owns the company. Reissuance on someone’s name does not change the fact. The problem still exists. For example, “Bank of Georgia” offers much more favorable conditions for obtaining a mortgage to buy an apartment in a house built by its own company “M2″. This puts us at a disadvantage. As a result, everyone suffers – both buyers and developers. All except for the banks,”- he says.
The fact that banks still are the actual owners of real estate companies is confirmed by “Adjara Development” company. According to Amiran Tsetskhladze, the company’s Director, the central bank’s decision has changed nothing in reality. “Specifically, our company is not affected by this situation, but it is obvious that real estate sector will not develop without competition,” – he explains.