Central government LEPLs and Legal Persons (N(N)LPs) subordinated to the central and local government bodies have deposits of millions of GEL in the commercial banks. According to the Audit Service, the volume of the sum made up 422 million GEL late in 2020. The Audit Service considers it problematic.
According to Deputy Finance Minister Giorgi Kakauridze explains, that there are various reasons and in those specific cases, those sums are tied to the funding of concrete projects.
"Remains and free money are two different terms. LEPLs can have deposits, but it is not free money, so it cannot be used in other directions. Enterprise Georgia has a deposit of over 50 million GEL, but it is fully part of the credit-guarantee system, which cannot be used for other purposes. There is a guarantee with a specific maturity and during that time this amount will be placed on the deposit. So, until the loan is not paid, this amount will remain on the deposit.
The National Bureau of Enforcement also has a certain amount of money on deposit, the bureau spends that money on the construction of House of Justice.
As for the Municipal Development Fund, which also has deposits in banks, these are funds for various projects and the fund lends money to different municipalities. This year, a new project cost of 130 million (Renovated Regions) is financed from these deposits.
In addition, funds of donors for the Log-In Georgia project is placed on the deposits and it should be directed only for this purpose ", - Giorgi Kakauridze explains.
