{"id":1392,"date":"2025-02-05T08:19:13","date_gmt":"2025-02-05T06:19:13","guid":{"rendered":"https:\/\/financialombudsman.org.cy\/?page_id=1392"},"modified":"2025-12-02T15:31:26","modified_gmt":"2025-12-02T13:31:26","slug":"mediation-service","status":"publish","type":"page","link":"https:\/\/financialombudsman.org.cy\/en\/services\/mediation-service\/","title":{"rendered":"Mediation Service"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text css=””]Mediation is a structured dispute resolution process, which takes place between the interested parties, with the assistance of the mediator, with the aim of restructuring non-performing credit facilities in cases where they are secured by a mortgage on the main residence or business premises. The mediator facilitates the process and encourages the finding of a mutually acceptable solution to the dispute, without imposing or manipulating the parties concerned.<\/p>\n

The role of the Financial Commissioner in the mediation process is\u00a0purely coordinating<\/strong>. The Office of the Financial Commissioner maintains\u00a0a Special Register of Mediators<\/a><\/strong>, from which it appoints a mediator for each application that meets the criteria for appointing a mediator, for the restructuring of a credit facility.<\/p>\n

Individuals or legal entities<\/strong>\u00a0with a turnover in the previous year\u00a0not exceeding \u20ac350.000<\/strong>, whose credit facility is in arrears or overdue and, therefore, requires restructuring, are entitled to submit an application for mediation. The participation of the ACI\/SEC in the mediation process\u00a0is mandatory<\/strong>.[\/vc_column_text][vc_empty_space height=”80px”][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” css=”.vc_custom_1743425379868{background-color: #EFF0F1 !important;}”][vc_column][vc_empty_space height=”80px”][vc_column_text css=””]<\/p>\n

Useful Terms<\/h2>\n
\nWhat does “Debtor” mean?<\/summary>\n

The\u00a0Natural or Legal Person<\/strong>\u00a0who applies for mediation for the restructuring of a credit facility. Its turnover in the previous year\u00a0must not exceed \u20ac350,000<\/strong>.<\/p>\n<\/details>\n

\nWhat does “credit facility” mean?<\/summary>\n

((a) a loan or overdraft limit or credit card limit of a total contractual obligation up to the amount of \u20ac350,000, which was originally issued by a credit institution to a debtor and\/or amended and\/or replaced and which is secured by a mortgage or a security assignment agreement filed with the Department of Lands and Surveys on a property used as a primary residence<\/strong> or as business premises<\/strong>, the estimated value of which does not exceed \u20ac350,000 and \u20ac750,000 <\/strong>respectively; or<\/p>\n

(b) financial leasing of a property, which is used as a main residence<\/strong> or as business premises<\/strong>, the estimated value of which does not exceed \u20ac350,000 and \u20ac750,000 <\/strong>respectively, with a total contractual obligation up to the amount of \u20ac350,000.<\/p>\n

It is understood that the assessment of the value of the main residence or business premises is carried out by an appraiser who is a member of the Scientific and Technical Chamber of Cyprus.<\/p>\n<\/details>\n

\nWhat does “main residence” mean?<\/summary>\n

The residence used for the owner’s accommodation, or a residence under construction that will be used for the owner’s accommodation, or in the case of a finance lease, the residence used by the lessee for a period of at least six (6) months per year<\/strong>.<\/p>\n<\/details>\n

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Submission requirements<\/h2>\n