PM Bakhtadze explains the effect of the debt cancellation programme

Prime Minister of Georgia Mamuka Bakhtadze went live on Facebook on December 11 to answer the questions of the Facebook users regarding different topics including the debt cancellation programme.

PM Bakhtadze said the Government initiative will give a chance to 600,000 Georgian citizens to become ‘economically and socially active’ again. He has also added that, while  being blacklisted by the financiers many people might feel uncomfortable to receive salary through their bank account what would encourage the shadow economy in the country.

“Georgia has two enemies - Russian occupation and poverty. One of the major reasons for the poverty is a high level of indebtedness and without addressing it we will find hard to overcome poverty,” Bakhtadze said adding that the high level of indebtedness has been caused by ‘irresponsible system of lending’.

A website - Vali.ge - has been created to help Georgian citizens having a non performing loans with up to 2000 GEL principal apply for cancelation of their debt.

PM Bakhtadze has apologised that the website has not been functioning well during the first few hours after launching and has emphasised that information about more than 400,000 people by six banks are already stored at the online platform.

The process of debt cancellation will take place between December 15 to December 31 with the support of the Cartu Foundation – a charity fund established and financed by Chairperson of the ruling party and  former Prime Minister, Bidzina Ivanishvili.

The Cartu Foundation will purchase the non-performing loans portfolio from the lenders including banks, microfinance organisations and payday loan companies.