On April 6 and 13, the USAID Rule of Law Program (Program), through its rule of law hubs in Kutaisi and Batumi, trained 52 lawyers from the Imereti and Adjara regions representing Georgian Bar Association (GBA) and Legal Aid Service of Georgia (LAS). The training focused on Legal Regulation of Loan Agreements: Material and Procedural Aspects.

The trainer Maia Bakradze, former judge of Tbilisi Court of Appeals, and expert Tamar Kusikashvili, with working experience with financial institutions and expertise in EU financial regulations, led trainings.

The training involved in-depth discussions with lawyers regarding loan agreements and banking obligations, offering detailed insights into the regulations of the national bank.

Specifically, Maia Bakradze talked about security of claims arising from loan, legal constraints on security, and provided comprehensive analysis of invalid loan agreements and related claims.

Meanwhile, Tamar Kusikashvili focused on banking obligations, particularly highlighting the regulatory authority and duties of the national bank within the financial sector. This included discussions on legal and sub-legal regulations, ethical standards for consumer protection, responsible lending practices, and the legal framework governing loan disbursement and repayment.

In addition to this, the training also covered the concept of property ownership as collateral for a claim, highlighting the peculiarities outlined in the Civil Code of Georgia. A significant portion of the training was dedicated to the intricacies of interest rates on loans, which have historically been regulated by the parties to agreements, but recent legal developments have emphasized judicial scrutiny over the reasonableness of interest rates. This includes consideration of national currency and foreign currency borrowing.

The USAID Rule of Law Program will continue supporting a series of training for the GBA and LAS lawyers. The forthcoming training, scheduled for May, will focus on matters concerning land registration.