Opposition platform promises annulment of pensioners’ loans “after win”

The Georgian opposition platform composed of the United National Movement – the largest opposition faction in the country in power between 2004-2012 – and the Strategy Agmashenebeli opposition have pledged to annule pensioners’ loans “after the win” of the October parliamentary elections. 

Domestic Liberty Bank, the sole provider of pension disbursements in the country, has been issuing these loans at interest rates higher than the standard rates for pensioners. As a result, many pensioners find themselves grappling with loan repayments that exceed 30 percent of their pensions, placing them in precarious financial situations.

The alliance titled Victory Platform has contended that relieving pensioners of these debts was not only a matter of social justice but also a pragmatic solution to alleviate financial hardships among the elderly population. They argue that utilizing state budget funds to clear pension loans would provide immediate relief to thousands of pensioners across the country.

However, the proposal has met with skepticism from government officials, who caution against the feasibility of such a plan. Deputy Minister of Finance, Giorgi Kakauridze, has warned of the potential consequences of utilizing surplus funds for debt clearance, citing the volatile nature of budget projections and the risk of recurring debt accumulation in subsequent fiscal periods.