The messenger logo

Bad loans in the banks

By Messenger Staff
Wednesday, January 14
Russia’s aggression against Georgia and the world economic crisis which followed it have created a situation in which many people have become unable to return the loans they took from the banks.

According to 2008 data the amount of bad loans was GEL 209 million. The banks don’t exclude that this figure might even increase. Statistical analysis shows that by December there were 142,000 physical and legal entities who could not pay back their loans. This is 78% more than before August 15.

Banks have made the conditions for issuing loans more strict and businesses are not very happy to take out loans themselves. Companies have decreased their expenditures, and are not thinking of expanding their businesses but maintaining their position in the market. They are reluctant to take credits at bigger interest rates.