Bad loans increase

The number of people who cannot pay back the loans they took out from Georgian banks is increasing. over 200,000 people now have this problem.

In previous years the banks promoted the availability of such loans and issued them very easily to any customer. Today the world crisis, the situation in the country and other factors have created real problems for the banks. The banks think that the solution to this problem is to sell collateral, but this also poses a big problem. Complex procedures need to be undertaken, and economic analysts suggest the prices of collateral properties have decreased by at least 50%.

If collateral values do not cover bank loan default losses then criminal cases could be started against the defaulters. These will come as a big shock for the people who signed the loan documents without thinking of the possible consequences. Taking this action could create very serious social processes in the country, as behind those 200,000 people are much larger families.