Cartu Foundation clarifies 2018 debt relief program amid social media claims

Cartu Foundation has dismissed recent claims circulating on social media regarding debts covered under its 2018 debt relief initiative, stating that any demands for repayment of loans included in the program are either the result of an error or involve obligations that did not meet the program’s eligibility criteria.

In a statement released on Monday, the foundation said false information about the 2018 debt forgiveness program had recently been spread online, prompting it to clarify the details of the initiative.

According to Cartu Foundation, under the Act of Social Solidarity launched in 2018, it purchased problematic financial obligations totaling ₾ 4,104,429,484 ($1.5 billion). The program resulted in the forgiveness of 1,387,296 loans belonging to 615,164 individuals.

The foundation noted that the initiative involved 55 banks and other financial institutions operating in Georgia and significantly eased the financial burden on hundreds of thousands of citizens while contributing to the improvement of the country’s financial environment.

Cartu Foundation said it purchased all loans that met the previously announced criteria, specifically debts with a principal amount not exceeding ₾ 2,000 ($735) and for which borrowers had not paid interest during the preceding year.

The statement also emphasised that loans were acquired only from financial institutions that agreed to participate in the program.

Individuals affected by the initiative can verify their status and obtain relevant documentation through Georgia’s credit information bureau, Creditinfo. The foundation added that it can also provide written confirmation regarding specific loans upon request.

“Cartu Foundation once again declares that these obligations were purchased solely for the purpose of forgiveness, and any kind of claim by the foundation regarding these loans is excluded”, the statement said.

The organisation stressed that if a financial institution is currently demanding repayment of a loan from the period covered by the program, this is either a mistake that can be easily verified or the particular obligation did not satisfy the established criteria and therefore was not included in the 2018 initiative.

The foundation called on the public not to be influenced by what it described as “hype” created by bad-faith actors and urged citizens to verify the status of their obligations through the appropriate institutions.