Parliament to address problem of collateral property

In the past years, many Georgian families became victims of collateral companies. Many Georgian citizens are having hard times because they have put their real estate properties in banks as collateral and could not pay back the loans. As a result, they are deprived of their houses, flats and valuable belongings. People take loans for different reasons: to invest in business, to improve residential conditions, or even to buy a new car. Georgia did not have any special legislation in place regarding collateral activities and therefore the number of people who have accumulated so-called bad loans has dramatically increased. With the new administration, the Justice Ministry has started elaborating new legislation which would address this problem.