Reforming Insolvency Systems in Latin America
The note shares conflicting interests hampering insolvency systems reform in Latin America, and aims at assessing legal weaknesses, to propose some common solutions. Most insolvency systems share two prime objectives: allocating risk among particip...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1999/06/717474/reforming-insolvency-systems-latin-america http://hdl.handle.net/10986/11474 |
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okr-10986-114742021-06-14T11:03:22Z Reforming Insolvency Systems in Latin America Rowat, Malcolm ACCOUNTABILITY ACCOUNTING ADMINISTRATIVE ARRANGEMENTS ADMINISTRATIVE COORDINATION AFFILIATES ALTERNATIVE DISPUTE RESOLUTION BAILOUTS BANKRUPTCY BANKRUPTCY LAWS BANKRUPTCY PROCEEDINGS CASH FLOWS COMMERCIAL BANKS COMMERCIAL LAW CORRUPTION COURT PROCESS CREDITOR CREDITORS DEBT DEBTORS DEBTS DISCLOSURE DISCLOSURE OF INFORMATION EMPLOYMENT FINANCIAL CONTRACTS FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL RISKS INSOLVENCY INSOLVENCY CASES INSOLVENCY LAW INSOLVENCY LAWS INSOLVENCY PROCEDURES INSOLVENCY PROCEEDINGS INSOLVENCY PROCESS INSOLVENCY SYSTEM INSOLVENCY SYSTEMS INSOLVENT LIQUIDATION NATIONS ORGANIZED CRIME REORGANIZATION SOVEREIGNTY TRANSPARENCY UNSECURED DEBT INSOLVENCY BANKRUPTCY COURTS LEGISLATIVE FRAMEWORK LAW ENFORCEMENT RISK MANAGEMENT JUDICIAL ETHICS FINANCIAL REGULATIONS CORRUPTION BUSINESS LOSSES LABOR LAWS & LEGISLATION REFORM POLICY DISCLOSURE OF INFORMATION REGIONAL COOPERATION The note shares conflicting interests hampering insolvency systems reform in Latin America, and aims at assessing legal weaknesses, to propose some common solutions. Most insolvency systems share two prime objectives: allocating risk among participants in the economy, in a predictable, equitable and transparent way, and, maximizing the value of the insolvent firm for the benefit of all interested parties, and the broader economy. However, current regional problems reflect too rigid and formal insolvency laws; very high degrees of judicial discretion, increasing uncertainty, and financial risks; rampant corruption; absence of enforcement mechanisms to protect creditor interests; and, a powerful, explicit bias in favor of labor claimants, who are highly protected under preferential treatment. The note proposes a common set of essential reforms, to be prioritized according to each county's circumstances. First, disclosure of behind-the-scene dealings should be required, incentives created to combat corruption, rules of conduct setup, and, insolvency professional associations fostered. Second, insolvency laws should clearly differentiate criminal, from bankruptcy issues, where criminal conduct should not preclude insolvency relief to a business in crisis. Third, bankruptcy proceedings demand rapid resolution, by specialized courts, under regional cooperation in cross-border insolvency cases. 2012-08-13T15:10:12Z 2012-08-13T15:10:12Z 1999-06 http://documents.worldbank.org/curated/en/1999/06/717474/reforming-insolvency-systems-latin-america Viewpoint. -- Note no. 187 (June 1999) http://hdl.handle.net/10986/11474 English Viewpoint CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research Latin America & Caribbean |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTABILITY ACCOUNTING ADMINISTRATIVE ARRANGEMENTS ADMINISTRATIVE COORDINATION AFFILIATES ALTERNATIVE DISPUTE RESOLUTION BAILOUTS BANKRUPTCY BANKRUPTCY LAWS BANKRUPTCY PROCEEDINGS CASH FLOWS COMMERCIAL BANKS COMMERCIAL LAW CORRUPTION COURT PROCESS CREDITOR CREDITORS DEBT DEBTORS DEBTS DISCLOSURE DISCLOSURE OF INFORMATION EMPLOYMENT FINANCIAL CONTRACTS FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL RISKS INSOLVENCY INSOLVENCY CASES INSOLVENCY LAW INSOLVENCY LAWS INSOLVENCY PROCEDURES INSOLVENCY PROCEEDINGS INSOLVENCY PROCESS INSOLVENCY SYSTEM INSOLVENCY SYSTEMS INSOLVENT LIQUIDATION NATIONS ORGANIZED CRIME REORGANIZATION SOVEREIGNTY TRANSPARENCY UNSECURED DEBT INSOLVENCY BANKRUPTCY COURTS LEGISLATIVE FRAMEWORK LAW ENFORCEMENT RISK MANAGEMENT JUDICIAL ETHICS FINANCIAL REGULATIONS CORRUPTION BUSINESS LOSSES LABOR LAWS & LEGISLATION REFORM POLICY DISCLOSURE OF INFORMATION REGIONAL COOPERATION |
| spellingShingle |
ACCOUNTABILITY ACCOUNTING ADMINISTRATIVE ARRANGEMENTS ADMINISTRATIVE COORDINATION AFFILIATES ALTERNATIVE DISPUTE RESOLUTION BAILOUTS BANKRUPTCY BANKRUPTCY LAWS BANKRUPTCY PROCEEDINGS CASH FLOWS COMMERCIAL BANKS COMMERCIAL LAW CORRUPTION COURT PROCESS CREDITOR CREDITORS DEBT DEBTORS DEBTS DISCLOSURE DISCLOSURE OF INFORMATION EMPLOYMENT FINANCIAL CONTRACTS FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL RISKS INSOLVENCY INSOLVENCY CASES INSOLVENCY LAW INSOLVENCY LAWS INSOLVENCY PROCEDURES INSOLVENCY PROCEEDINGS INSOLVENCY PROCESS INSOLVENCY SYSTEM INSOLVENCY SYSTEMS INSOLVENT LIQUIDATION NATIONS ORGANIZED CRIME REORGANIZATION SOVEREIGNTY TRANSPARENCY UNSECURED DEBT INSOLVENCY BANKRUPTCY COURTS LEGISLATIVE FRAMEWORK LAW ENFORCEMENT RISK MANAGEMENT JUDICIAL ETHICS FINANCIAL REGULATIONS CORRUPTION BUSINESS LOSSES LABOR LAWS & LEGISLATION REFORM POLICY DISCLOSURE OF INFORMATION REGIONAL COOPERATION Rowat, Malcolm Reforming Insolvency Systems in Latin America |
| geographic_facet |
Latin America & Caribbean |
| relation |
Viewpoint |
| description |
The note shares conflicting interests
hampering insolvency systems reform in Latin America, and
aims at assessing legal weaknesses, to propose some common
solutions. Most insolvency systems share two prime
objectives: allocating risk among participants in the
economy, in a predictable, equitable and transparent way,
and, maximizing the value of the insolvent firm for the
benefit of all interested parties, and the broader economy.
However, current regional problems reflect too rigid and
formal insolvency laws; very high degrees of judicial
discretion, increasing uncertainty, and financial risks;
rampant corruption; absence of enforcement mechanisms to
protect creditor interests; and, a powerful, explicit bias
in favor of labor claimants, who are highly protected under
preferential treatment. The note proposes a common set of
essential reforms, to be prioritized according to each
county's circumstances. First, disclosure of
behind-the-scene dealings should be required, incentives
created to combat corruption, rules of conduct setup, and,
insolvency professional associations fostered. Second,
insolvency laws should clearly differentiate criminal, from
bankruptcy issues, where criminal conduct should not
preclude insolvency relief to a business in crisis. Third,
bankruptcy proceedings demand rapid resolution, by
specialized courts, under regional cooperation in
cross-border insolvency cases. |
| format |
Publications & Research :: Viewpoint |
| author |
Rowat, Malcolm |
| author_facet |
Rowat, Malcolm |
| author_sort |
Rowat, Malcolm |
| title |
Reforming Insolvency Systems in Latin America |
| title_short |
Reforming Insolvency Systems in Latin America |
| title_full |
Reforming Insolvency Systems in Latin America |
| title_fullStr |
Reforming Insolvency Systems in Latin America |
| title_full_unstemmed |
Reforming Insolvency Systems in Latin America |
| title_sort |
reforming insolvency systems in latin america |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/1999/06/717474/reforming-insolvency-systems-latin-america http://hdl.handle.net/10986/11474 |
| _version_ |
1764416865159872512 |