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
Inovative and reliable online shop in Georgia - Momitane.ge
Status of Georgia as a business and tourism interesting country is growing from year to year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equiavlent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
13.11.2018
14.11.2018
USD
1
USD
2.7166
2.7166
EUR
1
EUR
3.0602
3.0602
GBP
1
GBP
3.4900
3.4900
RUB
100
RUB
4.0131
4.0131
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
2.7166
EUR
1
EUR
3.0602
GBP
1
GBP
3.4900
RUB
100
RUB
4.0131
November 2018
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