Nodar Javakhishvili Thinks the Government Creates Problems not Only for Cartu Bank but For the Entire Bank System and Economy of Georgia

News Agency “Pirveli”

Director general of the Cartu Bank Nodar Javakhishvili said the process of sequestering the estates mortgaged in the Cartu Bank continues.

Nodar Javakhishvili: “Last week, the property of 5, 2 million USD was sequestered for two more business-groups; consequently unprovisioned loans of total 3 million USD in fact lost perspective. In parallel to it, they started to put sequestered properties on the auction. Namely, last week 26 entities of total 19 million GEL was put on auction for its 50% price. However, as it was expected none of those properties were sold and will not be sold in future too. Relatively, the Ministry of Economy will get hold of it and will assign the properties to their initial owners in near future. Current situation convinces us in our assumptions and we now are fully aware why additional 160 million USD was allocated for the Ministry of Economy at the end of the year (40 million USD or 60 million GEL of it is price of the deal with the Jewish businessmen); with the money they aim to purchase the abovementioned properties. The rest 94 million GEL is like a Damocles Sword hanging over the Cartu Bank and supposedly they will manage to accumulate the abovementioned sums through politically motivated terror and the mentioned scheme with the support of manipulation with budget funds till the end of the year while the Georgian Bank System acts illegally by keeping silence on similar activities.

We would like to underline that famous legislative changes, which are used very effectively only against Cartu Bank, will create much more danger for the Georgian bank system and the entire Georgian economy in fact. Leveling the essence of the mortgage and first range mortgager will cause automatic deterioration of the quality regardless the fact the government will use it purposefully or not. This situation will dramatically reduce possibilities of granting new loans and will increase percentage rates.

The risks of the countries will automatically increase which will complicate the attraction of new loans from international financial organizations and make them more expensive; as for already allocated credit resources, the percent rates will increase. Part of Georgian banks has already responded to the situation – they halted or reduced discussion of applications on large credits. This process will continue and increase.

It is noteworthy that the National Bank of Georgia prolonged the raid in the Cartu Bank for two more months. On the other hand, oppression on the Cartu Group – founder of the Cartu Bank, is getting more intensive. Two days ago, the judge of the Administrative Collegium of the Tbilisi City Court satisfied the completely ungrounded solicitation of the Audit Department of the Revenue Service on repeated examination of the Cartu Group by cameras.

The process of purposeful and total damaging of the Cartu Group’s cargo also continues which started after Bidzina Ivanishvili started making political statements. Since October 17, 2011, all our equipment which entered Georgian territory, with the total price of over half million USD, was damaged and became useless. Since the equipment was produced by famous foreign companies, it is very likely that the Georgian state will be involved in the international scandal,” Javakhishvili said and called upon the government of Georgia “to stop unfair oppression on Cartu Bank, as well as on agricultural entities of the Cartu Group; because, with their activities they create problems for entire Georgian economy and international reputation of the state.”