Friday, July 12 2013 20:56
Restrictions and insufficient flexibility of recruitment mechanisms impede establishment of institution of Financial Arbiter in Armenia
ArmInfo. Restrictions and insufficient flexibility of recruitment mechanisms impede establishment of the institution of the financial arbiter in Armenia. The discussions were held in the Office of Armenian's Human Rights Defender overnight. It was mentioned at the meeting that the list of the arbiters is approved by the Council of the Union of Banks of Armenia in compliance with the Charter of the Financial Arbitrage. At present, there are 8 arbiters in that list and the entities having legal disputes can chose an arbiter from the given list only. In the meanwhile, the Law On the Commercial Arbitrage and the New York Convention and other international documents stipulate that the parties to a dispute have the fight to free choice of an arbiter.
"At present, to take a bank loan or make other operations with banks the citizens of Armenia sign contracts and settle disputable issues through the Financial Arbitrage. The Financial Arbitrage was established by the Union of Banks of Armenia to represent and protect the interests of banks. Consequently, when the citizens have to settle their disputes with banks through the Financial Arbitrage, it is more than important for the given institution to work impartially and transparently. This will be possible only if the list of the arbiters and the procedures of choosing an arbiter inspire confidence," he said.
Head of the Union of Banks of Armenia Samvel Chzmachyan, in turn, welcomed the Ombudsman's initiative to organize such discussions and said that the Financial Arbitrage is the most efficient mediation in the customer-bank dispute. Nevertheless, he said, the Union is ready to study further improvement of the institution.
Parliamentarian Khachatur Kokobelyan, in turn, assigned high priority to establishment of the Financial Arbitrage in the country and said that the judiciary still has shortcomings. The participants in the discussions arrived at a conclusion that it is reasonable to expand the list of the arbiters and develop specific changes in the Financial Arbitrage regulatory acts jointly with the Union of Banks.
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