Alexandre Dzneladze: Debts annullation is positive step for financial sector, as these funds may be turned into systemic problem in future

20:57, 19.11.2018

Governments initiative on debts annullation is one of the components of the whole process, – Alexandre Dzneladze, President of the Association of Banks of Georgia, told the First Channel.

The financial sector is selling credit arrears to Cartu Foundation. Negotiations were underway, The agreement with the majority of banks has already been reached and the relevant memorandum has been signed. This is a clear commercial deal. I believe this decision is really important for the financial sector and citizens, because it includes release of a large number of people from credit liabilities. This was realization, financial companies have sold credit portfolio and debt forgiveness from the bank sector did not happen” – Alexandre Dzneladze said.

“Debts annullation is a positive step for the financial sector, as these funds may be turned into a systemic problem in the future”, – he added.

The financial liabilities of more than 600,000 citizens toward the banks, online organizations and other financial institutions will be annulled. Georgia’s Prime Minister Mamuka Bakhtadze made this statement at the briefing today.

Economics

Alexandre Dzneladze

Debts annullation