Experts blame Kurmanbek Bakiyev for the problems of borrowers. Expert of the Anti-Corruption Business Council (ABC) Ivan Drobitko announced today at a press conference in 24.kg news agency.
According to him, major changes to the laws on the collateral, banking secrecy and the Civil Code were made in 2009. Then Kurmanbek Bakiyev was the president. Amendments were made to facilitate seizure of housing.
"There has been done everything in order the creditors to get easy mechanism for property seizure out of court. When we conducted the analysis of judicial practice, we found out that a large number of property was seized by extra-judicial decisions. The law includes the borrower's and the credit institution rights. But the credit organization completely ignores the right of the borrower," Ivan Drobitko stressed.
In Kyrgyzstan, the loan agreement is put on a par with the existing laws, and sometimes even above the Constitution.
The Basic Law clearly states that the property is inviolable and may be withdrawn only by court order. In practice, the person immediately upon receipt of the loan is made to sign an agreement on non-judicial seizure of property in case of non-payment of loans.