Pakistan - Strengthening the Insolvency Regime : Non-Lending Technical Assistance Final Report
The importance of a modern, binding and effective insolvency regime is undeniable. Nearly 90 countries around the world have reformed their bankruptcy codes since Second World War, and over half of them have done so during the last decade. One of t...
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| Format: | Insolvency Assessment (ROSC) |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2011/06/16251104/pakistan-strengthening-insolvency-regime-non-lending-technical-assistance http://hdl.handle.net/10986/12374 |
| Summary: | The importance of a modern, binding and
effective insolvency regime is undeniable. Nearly 90
countries around the world have reformed their bankruptcy
codes since Second World War, and over half of them have
done so during the last decade. One of the key aspects in
the reform process is the delicate balance addressed by a
modern insolvency system which encourages the organization
of viable firms and liquidates unviable firms. The financial
and macroeconomic crises, as recently experienced in
Pakistan, provide an opportunity for bankruptcy reform, as
the potential employment impact often places the issue of
insolvent companies high on the policy agenda. The three
fundamental goals of any insolvency law are: 1)
transparency, including a system for publicizing and
indexing judgments, an accessible method for registering
securing interest and an effective notice of insolvency
proceedings, 2) predictability - in terms of being fair,
simple and clear, which if not achieved ends up costing more
as financial institutions compensate the uncertainty with
additional credit costs; and 3) efficiency, which
conceptually is clear but empirically is difficult to measure. |
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