There is growing consensus between all sides of the Georgian political spectrum that the issue of household and individual indebtedness has to be addressed. The problem is overwhelming
and often under-discussed – around 45% of people admit in surveys to carrying debt. This may even understate the problem as other macroeconomic indicators suggest the number
could be closer to 70%.
During lockdown, delivery drivers are risking their lives to escape debt.
Yesterday, People in Need gathered important stakeholders from international and national organizations during the Closing Event for the project “Tackling Indebtedness in Georgia through Czech Innovations”. During the event, People in Need and GeoWel Research had the opportunity to present successful project’s results and key information from the Research Report with policy recommendations. The
Mikheil Svanidze, representatve of GeoWel Research thinks that indebtedness problem should be dealt with on an institutional level, bringing a Czech example.
The guide explains the practical costs to households of different types of credit, ensures that people know what to look for in loan agreements and, perhaps most importantly, ensures that they are supported if they find themselves facing debt challenges.
Mikheil Svanidze, GeoWel’s Researcher spoke on TV Pirveli “Business Morning” program about the ways to introduce accountable debt practices in Georgia.
GeoWel Research presented preliminary findings of research on the issue.
Paradoxically, Georgia’s poorest citizens – its elderly – have the easiest access to credit. But there is a catch.
Last weekend People in Need organized an online training for Local Action Group (LAG) members facilitated by experts from GeoWel Research and Georgian Young Laywers’ Associaation (GYLA) aimed at promoting financial literacy.
The country has one of the highest debt-to-GDP ratios in Europe, a situation exacerbated by the pandemic. When a young man walked into a payday lender in Tbilisi and took 19 people hostage on November 20, brandishing what appeared to be a rifle and hand grenades, it looked at first glance like a simple robbery.
