Georgian Builders’ Association is grateful to Parliamentary Committee on Sectoral Economy for the initiative as a result of which banks’ intervention in the development business will be monitored by the antitrust law.

A reminder: Chairman of the Parliamentary Committee on Sectoral Economy says that the fact that banks own their own construction companies and lend them puts entrepreneurs in unequal situation.

Zurab Tkemaladze claims that the government is actively engaged in anti-monopoly law, which will also control the banks’ interference in the development business.

The head of Builders’ Association of Georgia Irakli Rostomashvili explains commersant.ge that the abovementioned change was the only way out for the development companies because in 2012 banks didn’t finance any new projects, except for “M-square", which is under “Bank of Georgia” ownership.

"Arci" Director General Tornike Abuladze agrees with the opinion of Builders’ Association.

He says that if the antitrust laws monitor banks’ interference in development business, the development business will grow even more.

Abuladze claims that banks should support the country's economic development and must not act solely for their own interests.

Note: President of the Association of Banks of Georgia Zurab Gvasalia has a different opinion on this issue. In his words, several banks own development companies and it is illogical to refuse from lending in a case of an attractive offer from another rival bank

As for the anti-monopoly legislation project proposed by Parliament, he doubts that the law will allocate specific areas or prohibit commercial banks to own development companies or any other similar restrictions will be adopted.

he notes that, in general, these issues are already regulated by the article 22 "Prohibited transactions and working methods" of Georgian law on “Activities of Commercial Banks”.

Source:www.commersant.ge