The Association of Banks of Georgia has released a statement on writing off debts for more than 600,000 individuals.The Association emphasizes that the agreement between commercial banks and the "Kartu Foundation" is single-time and "it is expected to significantly reduce the volume of debt in the consumer sector".

“The banks operating in Georgia and the “Kartu Foundation” have completed preliminary talks on selling the portfolio of overdue debts. The portfolio mainly consists of small debts, which became delinquent until January 1 of 2018 and which meet the following criteria : principal loan does not exceed GEL 2,000; the loan had been continuously overdue by November 19 of 2018; it is not secured or is secured by movable assets or is personally guaranteed.

In case of disabled or socially vulnerable individuals, the initiative applies to those individuals, whose principal loan balance does not exceed GEL 2,000, whose debts became delinquent until October 1 of 2018, and have not been eradicated by November 19.

The final lists of overdue credit liabilities are being elaborated and will be completed on December 3, 2018, in accordance with the terms of the agreement reached between the banks operating in Georgia and the "Kartu Foundation".

The agreement is single-time and is expected to significantly reduce the volume of debt in the consumer sector,” the Association of Banks of Georgia said in the statement.