In Georgia, hundreds of thousands of citizens promise to write off debts
On the eve of the second round of the presidential elections in Georgia, the government announced that more than 600 thousand citizens will forgive their debts. The opposition had previously made a similar initiative, but announced the decision called the election a sham and a trick of the authorities.
To nullify debts more than 600 thousand citizens who find themselves in the so-called black list, promised the Prime Minister of Georgia Mamuka Bakhtadze.
Debt relief a total amount of about half a billion lari (about half a million dollars), according to the Prime Minister, will begin December 15 and will be completed before the new year. The debt will cover the Foundation “Kartu” founded by the Chairman of the ruling party Bidzina Ivanishvili.
The government say that we are talking about the citizens whose debt does not exceed two thousand lari in a particular financial institution (about $ 752), and which for more than a year overdue in payment of debt.
The decision announced today will enable hundreds of thousands of our compatriots to fully engage in economic and social life of the country that make our economy more sustainable, and the financial-banking sector is more healthy.Mamuka of Bahchisarae-Minister of Georgia
About debt relief was announced nine days before the second-round direct presidential elections in Georgia, which caused sharp criticism from the opposition and some non-governmental sector.
But the authorities claim that the problem of excessive debt the government has been ongoing for several months, and the decision is not connected with the elections.
Who will free from debt
According to authorities in Georgia to 700 thousand people — virtually a third of the working population in so-called black list because of debts. According to Finance Minister Ivane Machavariani, a large part — approximately 600 thousand people — those who have debt in a particular financial institution does not exceed two thousand lari.
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“Such a situation was the consequence of irresponsible lending. Almost all financial institutions very easily issue loans and, accordingly, was further very large fines and high interest rates. Many have become insolvent, but overall it was still a profitable operation,” said Machavariani.
According to him, payment of debts, took over the Fund a “Map”.