Kharatishvili Zurab » Taxation and credit

should commercial banks be able to confiscate real estate (dwelling) property if the person is unable to repay the credit? Why?

This is a very sensitive issue. Georgia is not exclusion in this respect; even more rich countries have such problems. The world economic crisis that began in 2008 was caused by liabilities created by mortgage credits. The main thing that should be done to do not create vain hopes. Today many our citizens are disillusioned by defiance of promises and vain hopes.  The ruling coalition and its leader are responsible in this.

As to indemnification of loans, this is a usual practice of conducting of business. We may think to do not charge big penalties on overdue loans, but we will not exempt anyone from fulfillment of liabilities.

We would not look at mortgage loans as an evil. It is one form of investment activity. As I have already pointed out, I think that it is expedient to exempt a sum spent on percent on mortgage loan from income tax. This will give an incentive to mortgage loans; will encourage the market of immovable property and respectively even the process of home construction.

Add Comment

Security Code:

Supported by

28678058Dutch Logo.jpg

The Project: Support to the Development of Democratic Institutions in the South Caucasus is funded by the Embassy of Kingdom of the Netherlands to Georgia. Visit the Embassy’s Facebook page for more information on their activities.