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Tbilisi might become a city of long term construction projects2009-05-08 18:04
Managers of another Georgian construction company have thrown their hands up: non-repayment and overdue credits are putting brakes on the started construction projects. Real estate prices continue to drop, for there is hardly anyone to afford new dwelling in the period of crisis.
Axis has suspended the construction of its two sites. There are no liabilities to clients, for the whole lot of apartments in these buildings belongs to Axis, as «Business Georgia» informs with reference to the enterprise management. Construction of the Axis Towers building, as well as another building in the Tbilisi suburbs, is currently suspended. Implementation of another 7 projects is going on at a normal pace, and the buildings will be commissioned on the due date. However, 9 percent of the Axis clients (10-15 percent, according to radio Commerant) are having certain problems. Some of them are indeed on the breadline due to unemployment; the others have just postponed their payments because of the crisis. Fines are imposed upon the debtors,
the money being subtracted from the amounts already paid. All this can result in people being dishoused. Developers will take away their apartments on account of debts. Getting back the paid amount seems to be a difficult matter, so far as the demand for real estate in Georgia has slumped, thus reducing the Axis sales by 70 percent.
The Center Point constructing company has even a greater number of problem clients, about 30-40 percent. As manager Guram Rcheulishvili stated, the company is making all kinds of concessions to its debtors; someone is offered to restructure the credit, others to move to a cheaper apartment. The Olympic Start company has suspended the implementation of all the projects in the context of the crisis. Since the company is unable to sale the apartments on mortgage, the management is trying to attract long-term financial resources and obtain a credit from the Bank of Georgia. The number of problem clients in this company has also moved up to 40 percent.