Pensioners, independent MP candidate organise ‘corridor of shame’ protesting high rate of pension loans from Liberty Bank

Independent majoritarian candidate for Didube-Chugureti Ana Dolidze and pensioners have held a ‘corridor of shame’ rally in front of the National Bank of Georgia, protesting that about 400,000 pensioners out of the more than 750,000 in the country have what they say are very expensive loans taken out from Liberty Bank. 

Pensioners benefiting from the pension loan are obliged to pay one third of their pension every month.

It is the responsibility of the National Bank of Georgia and its head Koba Gvenetadze not to allow banks to take the last loaf of bread from our old people,” said Dolidze. 

She noted that the National Bank of Georgia must regulate the interest rate Liberty Bank has for pension loans.

This is absolutely shameful, the National Bank left our pensioners, internally displaced persons (IDPs) and socially vulnerable people [alone] with Liberty Bank. Liberty Bank charges them a huge interest rate. Half of our pensioners give most of their pensions to Liberty Bank. This bank is a monopolist and in the National Bank does nothing at all,” said Dolidze.

Who can receive a pension loan and what are the conditions?

People of any age who receive a state pension with a monthly pension of at least 45 GEL can take out a pension loan. The amount of the loan can be a minimum of 100% of their pension and a maximum of nine-fold of the pension, depending on the pension size. 

The loan term is from four to 57 months.

The pension loan accrues 30.69 per cent annually and a pensioner should not pay any other fees. Moreover, this loan has no penalty for overdue or early repayment. The loan is repaid on the 14th of each month after the pension is credited.

Pensioners can also receive their pension in advance in the form of an overdraft.