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Today Banks and Construction Businesses are Competitors

“The separation  of banking  and non-banking activities is a necessity, banks must regain their  position of  business partners and  not competitors,” Tornike Abuladze, a member of the Developers Association and general manager of the construction company Arci said.

According to him, despite the fact that in August 2014 the National Bank ordered financial institutions to get rid of non-core assets, actually it did not happen.

“The separation of banks and non-core activities was purely legal and formal but only on paper. In reality, the problem has not been resolved, though the first necessary steps have been taken. It should be assessed as a process rather than as a one-off action,”Tornike Abuladze notes.

In his words, the National Bank’s decision can serve as the basis for further steps to separate  banks and non-core assets.

“In Georgia, there  is a fairly strong banking system and businesses resort to its services when they need funding. But they fear that the bank which gave them a loan, tomorrow may become their  competitor, since many banks own  companies working in various sectors, including development. Thus, every businessman fears the bank will create artificial obstacles in obtaining loans, and eventually will become a competitor. This prevents the development of business in the country, “Abuladze added.

He notes that  there is a paradoxical situation in the country – the banks do not know where to invest money, and businessmen are afraid to turn to banks for loans.

“We, as a company, have grown along with ” Bank of Georgia ” and  have carried out many projects  in cooperation with  the Bank. But at some point, we saw that it  turned into our competitor. Today we are competitors, not partners. Once everyting  returns to its  place, and we again become partners, we will have much more opportunities that  will have a positive impact on the country as a whole,”- the head of the  construction company points out .