Debts and Loans in Georgia (Part 1)

In Georgia, where, according to the World Bank, a third of the population live on under USD 2.5 per day, poverty and unemployment are consistently considered the most important issues facing the country. For those who are struggling financially, borrowing is a widespread coping mechanism. While access to credit can have benefits, debt can also have psychological costs, such as increased stress and anxiety. CRRC’s 2015 Caucasus Barometer (CB) data show interesting patterns about having personal debts in Georgia. The first part of this blog post focuses on the characteristics of those who report having personal debts in Georgia, while the second part looks at the money lending patterns, as well as reported well-being of people who are owed money or who borrow it.

In response to the question, “Do you currently have any personal debts?” which asks about all types of debt a person may have, 46% of the population report having debts and 53% say they do not have any. There are no large differences by settlement type. People between 36 and 55 years of age report having debts more frequently than people in other age groups. Men report they have debts slightly more often than women.

Note: The charts in this blog post do not include answer options “Don’t know” and “Refuse to answer,” which constituted 1% of responses.

People reporting a more difficult economic situation in their household are more likely to say they have debts. While 55% of people who state they do not have enough money for food report having debts, 28% of people who have enough money for durables report the same.

Note: Answer options “We can afford to buy some expensive durables like a refrigerator or washing machine” and “We can afford to buy anything we need” were combined into the category “Can afford to buy expensive durables” on the chart above.

In the second part of this blog post, which will be published on Monday, patterns of both borrowing and lending money will be discussed.

To have a closer look at the Caucasus Barometer data, visit CRRC’s Online Data Analysis platform.