In a world driven by credit, the challenge is to develop systems that foster commercial confidence and predictability by providing the means for effective response to default conditions. Handled properly, creditor rights and insolvency laws can contribute to the economic health of countries by providing a safety valve for financial distress, reducing asset deterioration, and restoring balance to commercial relationships. As part of its contribution towards the stabilization of the global financial architecture, the World Bank has undertaken the initiative to implement an integrated program of principles, actions, and capacity building.
| Principles and Guidelines for Effective Insolvency and Creditor Rights Systems |
Developed by the World Bank in conjunction with partner organizations, more than seventy international experts, and input from the international community, the Principles represent international consensus on a uniform framework and constitute the standard for benchmarking the effectiveness of insolvency and creditor rights systems. They offer guidance to policymakers on the policy choices required to establish or strengthen a functional system for healthy debtor-creditor relations.
| Assessment and Technical Assistance |
As part of the World Bank/IMF Financial Sector Assessment Program (FSAP), the Reports on the Observance of Standards and Codes (ROSCs) provide a template, based on the World Bank’s Principles, to help countries evaluate their own insolvency and debtor-creditor relations systems. The ROSC assessments on insolvency are conducted by World Bank staff, supported by experts from other institutions. In addition, the World Bank provides technical assistance for countries developing their insolvency and creditor rights systems.
| Conferences & Forums and Capacity Building |
A seminal aspect of the Insolvency Initiative is its active engagement in providing parties with capacity building opportunities. The World Bank has hosted, sponsored and participated in various global and regional forums bringing together key international experts and relevant regional practitioners. Situated at the heart of this effort, GILD offers opportunities for training and discussion on the insolvency and creditor rights fields, through specially designed materials, documents from forums, lectures, symposiums and seminars, and on-line forums. |
RSS