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Value of Real Estate Put up for Sale by MFOs Doubled

MFOs share in the mortgaged property  put up for sale amounted to  4.5% as of the first half of last year. Chairman of the Association of Microfinance Organizations Archil Bakuradze told commersant.ge.
He says  the number of borrowers increases,however, the amount of loans issued by MFOs is small.

“Increased volume of repossessed property by  MFOs can have two reasons: a decline in purchasing power and a reduction in MFOs standards. However, we are working on an increase in the standards and in general, quality has not  deteriorated, “- says Bakuradze.

In the first quarter of 2014 the real estate repossessed by MFOs totaled GEL 5.7 million, which is 2.2 times higher compared to the same period of 2013.