Changes were made in the code

We have been actively involved in current discussions with bank associations regarding the prospective changes in pledge, bank mortgage, tax codex and other statute. Eventually this issue was brought to a close considering the interests of banks and microfinance organizations. The case relates to the prior right to have the property registered at the office of public registry. If the property that has been mortgaged by a bank or a microfinance organization is sequestered by the tax office, the money from the realization of the property will be given to mortgagers in order of the dated of the registration of the mortgages after it is sold. The priority will not be given to a taxation office as it would occur before changes were made in the code.

We have to note that in the first project of the change in the code there was only one exception about the commercial banks. Our association made an effort to add microfinance organizations to the exception as well. In this case microfinance organizations became the part of the credit – finance system and it has been equaled to the commercial banks for the first time in Georgia.