Microfinance Organization Eurocredit and the Mediators Association of Georgia concluded a memorandum of understanding to introduce a Mediation mechanism to Eurocredit's portfolio management system. Today, due to the overload of the Court, Judicial procedures drag on for a long. Delayed cases are also compounded by court-related and other relevant expenses, benefitting neither the business sector nor consumers.
Eurocredit considers, that business success is in timely Mediation and welcomes its use in dispute resolution. Mediation is an alternative dispute resolution method through which two or more parties try to settle a dispute by reaching an agreement with the Mediator's assistance. Unlike in Court and Arbitration hearing, in the Mediation process, parties themselves make the decisions, and a dispute, or a conflict, is reached quickly and with fewer expenses. The latter is a valuable process for the Financial Sector as evidenced by the relevant Court statistics, according to which, from the 2020 mandatory Microfinance disputes (those arising from loan obligations) transferred to the Mediation Center of Tbilisi City Court, 80 percent of the cases concluded with an agreement.
" Resolving disputes through Mediation is an acceptable and authentic solution for both lenders and borrowers. By choosing Mediation in this process, parties save time, expenses and, as a result, receive a customized and controlled process," explained Sophio Dughashvili, the Chief Legal Officer of Eurocredit.
It is noteworthy that the Memorandum also foresees the planning of joint activities and the promotion of Mediation as an alternative dispute resolution mechanism in the Financial Sector.
