Mediation is a structured but flexible process, conducted voluntarily, confidentially, without prejudice and in private, based in principled negotiations. The Mediator is a neutral person, who facilitates the communication and the effective negotiations between the parties, impartially and independently.
The Mediator actively assists the parties in widening their perspective, re-appraising their situation, risks and opportunities, creating new options to dispute resolution, working towards a negotiated, mutually acceptable and legally bounding dispute resolution agreement.
The parties decide to bring the dispute in Mediation, voluntarily and have the possibility to opt-out any time, if they decide to do so. There is no requirement that the dispute has been previously formalized, for instance through litigation procedures, whereas Mediation does not preclude litigation or other alternative dispute resolution process.
During Mediation the conflicting parties are facilitated in presenting their case, highlighting aspects of particular significance to them, without having to disclose commercial or personal sensitive information, developing creative options to settlement, which may not be available through litigation, based on their needs and interests and on a realistic assessment of risks.
The ultimate control of the decision to settle and the terms of resolution belongs to the parties. If an agreement is reached, it is documented and signed by the parties and the Mediator. Mediation agreement is legally bounding and enfrorceable. In case of failure to reach an agreement in Mediation, the parties have the right to carry on with other dispute resolution procedures. It is usual though that the parties, having narrowed the settlement gap and avoided escalation of the conflict during the Mediation process, they settle the dispute, shortly afterwards.
Mediation cost is modest compared with the loss of time and the litigation expenses.
Numerous national legislative provisions name Mediation as an alternative dispute resolution method, in a wide range of civil and commercial disputes, either as an obligatory procedural stage before litigation for some of them or voluntary for the rest. Either way, its main characteristics (voluntary, structured but flexible, confidential, impartial, time saving and cost-effective) feature Mediation as one of the most favored ADR process.
- How can Mediation help NPEs & NPLs Servicing and Debt Recovery?
Although Mediation has been a voluntary option for the resolution of distressed loans since 2010, financial institution did not embrace it in their internal policies and procedures. The Code of Conduct adopted by the Bank of Greece, for both the supervised institutions and the debtors, endorsed the Mediation process with a view to finding resolution for loans in arrears, taking into account the socio-economic circumstances of each debtor.
Mediation is not mere compromise. It can develop creative options for settlement resolution, which may not be available through litigation, based on the parties’ needs and interests, not always to be disclosed, and on a realistic assessment of risks or on agreed objective criteria. Exploring options and finding mutually profitable solutions and repayment plans that better meet the parties’ needs and interest, increases the likelihood of securing collection and debt recovery.
Achieving viable agreements, mutually acceptable, legally bounding and enforceable, without loss of time and at a modest cost, through a confidential and impartial can establish relationships, add value and finally transform a financial claim in dispute into a mutual benefit investment opportunity.
- Resolution matters
Our team of senior NPL resolution and ADR professionals, with a strong academic background and an executive banking experience in Greece and abroad, has an extensive knowledge and understanding of the respective operational, regulatory and legal framework that applies to all financial institutions supervised by the Bank of Greece. Specialized in the procedures of out-of-court debt resolution, we provide our clients with our expertise in:
Financial Institutions, Credit Acquiring and Servicing NPL portfolios firms can additionally benefit from our high quality, top-full services in: