Another Victim of Rose Game?
02 August, 2012
Another Victim of Rose Game?

Cartu Bank, which have been imputed with political tycoon Bidzina Ivanishvili, is supposed to fall another victim bank going bankrupt due to political game of the Rose Revolution government.

Nodar Javakhishvili, President of Cartu Bank, accuses the forced regime management assigned by court at Cartu on July 12, 2012, in deliberate destruction of the bank  leading Cartu to liquidity problems that unties hands to the National Bank of Georgia (NBG) to assign temporary administration there and Cartu may share the fate

of Standard Bank [owned by the late politician tycoon Badri Patarkatsishvili] going bankrupt and sold out in 2007 after Patarkatsishvili entered politics as an opposition.

The NBG assigned a temporary administration at the Standard Bank, arrested its accounts and led the Bank to bankruptcy.  Giorgi Kadagidze, the incumbent President of the NBG, was the head of that temporary administration at Standard Bank and Irakli Zarkua [who was a board member of the recent forced management at Cartu] was also a member of temporary administration at Standard Bank in 2007. According to Javakhishvili,  Zarkua when leaving Cartu on July 26 after cancelation of the forced regime promised to get back in a fortnight and very likely he will.

New management did its best to destruct the Bank to bankruptcy during a week of administration in order to lay ground to the central bank to assign its temporary administration at Cartu, Javakhishvili as well as experts say.

“Consequently, Cartu faces liquidity problem that will be revealed by the NBG on August 10, when commercial banks are supposed to present their obligatory financial reports at central bank and the NBG will introduce a temporary administration at Cartu quite legally since the bank faces liquidity problems,” Lia Eliava, a financial analyst, said. “All will be done within legal frameworks. The state wins always and everywhere.”

Georgian financial analysts predicted Cartu bankruptcy was predefined as soon as the court decided to pass it to forced management on request of the National Bureau of Enforcement of Georgia (NBE) and Zarkua, a dexterous expert of bankruptcy affairs, stepped in as a board member.

“He did his task with success and was promoted into a counselor of Kadagidze in reward,” Javakhishvili said in the interview with Georgian Journal. “New management did everything to prepare a ground at the Bank that if there had been jeopardy to revoke the forced management regime they should have contrived to lay ground to introducing the temporary administration of the NBG under excuse of liquidity problem or any other kinds of diversion from norms.”

As soon as new management stepped in Cartu it initiated negotiations with European Bank for Reconstruction and Development (EBRD) on clearing the loan before the deadline while EBRD did not ask for anything. On the other hand, new managers undertook reconstruction of a branch-office in Telavi, Kakheti region, and contracted a company [imputed with Zurab Adeishvili, General prosecutor of Georgia] for GEL 800 thousand to this end while the questioned building was acquired for GEL 500 thousand. Neither track of accounts, nor a business plan or any other due paper-work proving reasonability of the deal is available. When Cartu employees protested complete transfer of the requested GEL 800 thousand the authorized managers issued a special act to transfer GEL 300 thousand in advance to the contracted company.  The gem of prowess of new management that dropped Cartu beyond the liquidity limit [fixed at 20% of attracted resources] was a USD 50 million worth loan contracts with 4 developer companies. Contracts with no collateral back-up, economic reason, and clear obligations on the side of the borrowers.

“As a matter of fact they failed to disburse this loan due to time limits but nevertheless this loan is put in the Bank’s obligations that catastrophically affects the liquidity limit that will be a direct ground to the NBG to enter at Cartu through temporary administration,” Javakhishvili said.

These fatal agreements were signed on July 24 when Ivanishvili paid penalty and the forced management [imposed on the Bank to impel Ivanishvili, a billionaire leader of oppositionist political coalition Georgian Dream and imputed owner of Cartu Group, to pay GEL74 325 065 penalty for alleged breakage of law on Party Financing] was to be canceled.

Ivanishvili waived the penalty claim as illegal. To press on him NBG seized 100% of Cartu Group including the 100% of Cartu Bank within itself as well as 21.7% held by Ivanishvili at Progress Bank but to no avail as Ivanishvili claimed he did not own Cartu Group any more as he handed his shares to other foreign investors by May of 2012 and therefore did not plan to pay for the property that does not belong to him. New stakeholders appealed Georgian authority not to infringe their rights.

Nevertheless, NBG put Cartu Group assets along with the Progress Bank shares at auction on July 2-10, 2012 but it failed and the questioned assets were passed to forced regime management on July 12 that was canceled on July 26 for Ivanishvili paid the requested money in the state budget on July 24 in the face of charity action to help the natural disaster-affected Kakheti region completely devastated by storm and hail on July 19.

Spokesperson of the ruling National Movement party claims the charity was a mere excuse for Ivanishvli who paid the penalty to save his actual property from bankruptcy. But not Cartu Bank. Its operation is suspended at the moment due to liquidity problems expecting for another bout of temporary administration that Javakhishvili expects will end up similar to Standard bank – bankruptcy and divesture. Cartu raised a lawsuit against new management team on unreasonable loan-contracts, however having experienced unfair court decisions, property arrest and auction, Javakhishvili does not believe the court will settle fairly. Besides the litigation process does not hamper the NBG to go ahead with temporary administration.

“New management did a crime in fact but do you believe in this court?” Javakhishvili asked. “Besides, until the court procedures are over  the temporary administration will handle with the Bank.”

 

Print
Other Stories
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
10 Reasons to buy an apartment in the suburbs
There is a tendency for Tbilisi dwellers to move from central parts of the capital to the suburbs.
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
20.04.2019
21.04.2019
USD
1
USD
2.6935
2.6935
EUR
1
EUR
3.0291
3.0291
GBP
1
GBP
3.5021
3.5021
RUB
100
RUB
4.2126
4.2126
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6935
EUR
1
EUR
3.0291
GBP
1
GBP
3.5021
RUB
100
RUB
4.2126
April 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30