Rise in late Loan Repayments

Why are increasing numbers of people being late with their repayments of loans? According to the National Bank’s data, the number of late loan repayments has increased by 38.4% this year (up until and including June), compared to the same period last year, and by 8.2% compared to this year’s first quarter. A spokesman for the Bank of Georgia is reporting similar trends. According to their statistics, 4.3% of all the loans which the BOG has given out, have not been repaid on time during the first quarter, up from 3.3% during the first quarter in 2012. The IliaUni Business Review surveyor Giorgi Abashishvili links the increasing numbers of late loan repayments to the rising unemployment in the country, as well as people’s failure to fulfil their expectations from the loans.