In order to incorporate the most recent updates to UNCITRAL’s Legislative Guide on Insolvency Law, the World Bank has reviewed and revised the Principles as well as the Standard for Effective Insolvency and Creditor/Debtor Regimes, in coordination with UNCITRAL and in consultation with the IMF. In January 2011, the World Bank reconvened the Global ICR Task Force, which was attended by representatives of international organizations and over 85 internationally recognized experts, policy makers and judges from all regions. With the active participation of its members, the Task Force was able to finalize the 2011 Principles and Standard for Insolvency and Creditor/Debtor Regimes. The new amendments are included in the following documents:
1) The Draft Amendments to the ICR Principles: new Principles C16 and C17
2) The 2011 ICR Principles: full document
3) The Draft Amendments to the ICR Standard: new Principles C16 and C17 and UNCITRAL’s recommendations concerning the Insolvency of Enterprise Groups.
4) The 2011 ICR Standard: full document
In the afternoon sessions of the first day of the Task Force meeting, the World Bank's Insolvency and Creditor/Debtor Regimes Team presented two Papers, that elaborate on Principles B3, B4 and B5 (Issues Note on Out of Court Debt Restructuring) and D8 (Issues Note on Insolvency Representatives) of the Principles for Effective Insolvency and Creditor/Debtor Regimes.
In a world driven by credit, developing the means to effectively respond to default conditions is essential to foster commercial confidence and predictability. If properly designed, insolvency and creditor rights laws can contribute to the economic health of countries by providing a safety valve in the event of financial distress, reducing asset deterioration, and restoring balance to commercial relationships.
The World Bank contributes to the stabilization of the global financial architecture in the area of insolvency and creditor rights through an integrated program. This program includes the promulgation of principles on insolvency and creditor rights, assessment and technical assistance to clients, and capacity building events.