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Parliament to Try to Solve a Problem of Mortgage Loans by Developing a Prevention Mechanism

“Commersant” reports that the Legal Affairs Committee, along with  the Association of Banks of Georgia and other government agencies, is working on tackling the problem of mortgage loans. Parliament is going to solve the mortgage problem by developing a prevention  mechanism.
According to President of the Association of Banks of Georgia Zurab Gvasalia,  today it is very difficult to solve the problems of the existing mortgage debtors. Accordingly, such a law should be adopted that will allow to avoid increasing their  number.

The Association does not even have a proposal that can solve the problem. Gvasalia can’t  imagine how to resolve their problems.

The proposal which serves to solve the problem of mortgage loans has been submitted to the Parliamentary Legal Committee.

Deputy Chairman of the Legal Issues Committee Tamaz Avdaliani says  that the Committee has already sent a proposal of the NGO Freedom and Justice to the government as well as the Association of Banks and is waiting for their comments.

Avdaliani  notes it is very difficult to solve the issue of mortgage loans , in his opinion,  a lot of factors should be studied and considered in order the law to work upon the adoption.

According to Vice-Speaker of the Parliament of Georgia Manana Kobakhidze, to solve the problems of debtors on mortgage through   the budget is  impossible.

“People for various reasons found themselves in a difficult situation, and the state cannot interfere in relations between individuals, debtors and banks. This problem cannot be resolved through the budget, because the state cannot repay the interest and the debts of citizens.  During the election campaign we did not promise citizens to solve their problems. It was a different story, our words are interpreted incorrectly. We promised to ask  the bankers to restructure debts, but we cannot directly intervene in their activities, “- she notes.

“Georgian Dream” has been in power for more than 2 years, but the mechanisms of legal solutions to this problem have not been yet developed. Citizens hold permanent protests outside the Parliament building and demand the government to help them solve problems, but to no avail.

Last year, Parliament began debating the draft law to postpone the process of evictions from apartments for six months on account of payment debts, but in the end it was rejected because of criticism from  the then Prime Minister Bidzina Ivanishvili and bankers, who felt that such a law would paralyze the financial system.

Catholicos-Patriarch of Georgia called on banks to refrain from evicting  citizens during the winter. According to statistics, an overall cost of  the propery appropriated by  10 commercial banks amounted to  GEL 86.3 million in two quarters of 2014.