The Banking Association of Georgia explains the categories affected by the governmental initiative of debt annulation. According to it, the Fund “Cartu” and commercial banks concluded a single-use deal.
“The Fund “Cartu” and Georgian banks completed preliminary negotiations on selling of the part of overdue loan portfolio. The portfolio consists of low degree credit obligations deemed as overdue prior to the 1st of January, 2018 and which satisfy all below-mentioned criteria:
Are discontinuously overdue as of the 19th of November, 2018; a general amount of the credit obligation doesn’t exceed 2 000 (two thousand) GEL: is not provided or is provided with a real estate or a guarantor.
As for the debtors registered in the base of the bodies with restricted capabilities and socially vulnerable bodies, we deal with the credit obligations where the remained general amount doesn’t exceed 2 000 (two thousand) GEL, and the default was registered prior to the 1st of October, 2018 and is not covered till the 19th of November, 2018.
Under the terms of agreement reached between the Fund “Cartu” and the Georgian banks the final lists of overdue credit obligations are being determined and will be ended on the 3rd of December, 2018.
The deal between commercial banks and the Fund “Cartu” is of one-use and probably it will significantly decrease a volume of debts in the consumers sector. Besides, the financial surge urges consumer while overtaking of financial obligations to be more responsible for fulfillment of the terms of credit service”, – states the Banking Association.