According to Bank Cartu, Property of Clients Deposited in the Bank as Mortgage Are Continuing to be Sold at the Auctions

Bank Cartu states that the property deposited as a mortgage in the bank and sequestrated by the National Bureau of Enforcement is being sold in the public auctions. The bank disseminates the statement regarding this issue. Interpressnews presents the full statement:

“The process of imitation of trading in the public auctions on the property deposited as a mortgage in the bank and sequestrated by the National Bureau of Enforcement is continuing. Last week, on January 4th of 2012, additionally 6 buildings were taken out at the auction which equaled to 12.3 million GEL in sum and the starting price of it amounted to 50%.

Besides, we would like to pay particular attentions to several facts. As it was expected none of property taken to the public auctions has been sold. The majority of it was misappropriated by the Ministry of Economics. The rest of the property is being misappropriated by means of naturalization by the same Ministry. We assume that this is being performed according to certain scheme in order to give it back to the owner ultimately;

In case of two property take out at the auction our bank expressed a desire to buy the property and participated in the trade. However it was in vain. As it was found out later the winner of the auction (according to our assumption, state representative) did not pay the declared price, did not consider it necessary to hold auction second time and these properties were appropriated by the state by means of naturalization according to the legislative amendments carried out in the recent period:

The logic of action of tax bodies does not make sense. When the taxpayer has a tax obligation, the utmost instrument for money withdrawal is a tax sequestration. This kind of action occurred in regards with only one business group of debtors and it happened after the Ministry conducted the auctions and misappropriated the properties. According to our information, tax sequestration has been applied on the full money of tax obligation. It is becoming obvious that the government is not interested to withdraw tax debts from the client organizations but to deprive the bank Carty the property burdened for the benefit of Bank Carty through mortgage.

Out of the clients of our bank whose property was sold at the auctions, three are the joint stock companies whose main auctioneers are three people. These organizations owe three big buildings in the center of Tbilisi at Vekua #3 St., Agladze St. #37 and Chavchavadze Avenue #60. As a result of unfair auctions, except for the bank, more than thousands of small shareholders lost their property.

As a result of the above mentioned actions, the bank lost the property of four business groups of debtors and experienced loss of 66,7 million GEL.

In order to prevent the negative results of expected damage (possible violation of bank normative), bank adequately increased supervisory capital.

Besides, Bank Cartu still remains to be a finance institution with one of the highest liquidation rate.

And lastly, once again we call on Georgian government to stop exercising unfair pressure against Bank Cartu and its clients since it endangers the whole finance system of Georgia, its economics and international image of the state.

Administration of Bank Cartu will carry out all essential measures in the framework of existing legislation and best international practice to maintain name of stable bank department, to serve the clients without delay and duly fulfill every legal request of national bank of Georgia.”

Interpressnews