Mauritius : Insolvency and Creditor Rights Systems
The Bank assessed the Mauritius insolvency and creditor rights systems pursuant to a joint IMF-World Bank initiative to develop reports on the observance of standards and codes ("ROSC"), based on the Bank Principles and Guidelines for Eff...
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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/2004/03/6572694/mauritius-report-observance-standards-codes-rosc-insolvency-creditor-rights-systems http://hdl.handle.net/10986/14423 |
| Summary: | The Bank assessed the Mauritius
insolvency and creditor rights systems pursuant to a joint
IMF-World Bank initiative to develop reports on the
observance of standards and codes ("ROSC"), based
on the Bank Principles and Guidelines for Effective
Insolvency and Creditor Rights Systems during 2002. The
assessment team interviewed a cross section of country
stakeholders regarding the effectiveness of the legal
infrastructure, and its implementation supporting
debtor-creditor relationships, corporate insolvency and
credit risk management and resolution practices. Conclusions
in this assessment are based largely on a review of
applicable legislation and information gathered through
interviews conducted by the staff team, and other inputs
provided by the Steering Committee on Insolvency and
Creditor Rights set up by the Government of Mauritius in
January 2003. In addition, five commercial banks provided
responses pertaining to credit risk management and corporate
recovery practices with respect to distressed assets. Policy
recommendations include: creditors rights and enforcement
areas, some fine tuning is required to broaden the use of
security interests on movable and immovable property, and to
ascertain the maximization of the value of the assets for
sale upon seizure; enforcement procedures should be
streamlined further by accelerated debt recovery rules and
more efficient procedures for execution, enforcement and
auctions; Credit Information Bureau should be established in
Mauritius, and, the government should encourage the
development of Credit Rating Agencies. On the legal
framework for corporate insolvency, a global reform of the
insolvency procedures should be pursued in order to provide
Mauritius with a modern and efficient commercial insolvency
law. It is also recommends the necessary amendments to the
Bankruptcy Act and Bankruptcy Rules to take care of both
traders, non-traders and companies insolvencies, and, the
harmonious and uniform recovery procedures for all debts,
including amounts due to the State. |
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