They allow sound but temporarily troubled firms to keep functioning. Furthermore, they offer an alternative approach to bankruptcy in a way that protects lenders and employees’ interests in the best possible way. As a result, modern insolvency regimes keep productive assets in the economy, free-up the unproductive ones and play a crucial role in retaining jobs that would otherwise be lost. The Debt Resolution Program addresses key constraints to economic development in the Western Balkan region and is well aligned with SECO’s strategic objectives. Theprogram is implemented by the International Finance Corporation (IFC).
The objective of the program is to contribute to effective insolvency frameworks in order to reduce the level of non-performing loans (NPL) and to allow for currently unproductive assets to re-enter the investment cycle. This second phase will focus on the practical application of the newly introduced frameworks in Serbia, Albania and Bosnia and Herzegovina. Furthermore, it aims to replicate the success in improving the existing legal and regulatory framework in North Macedonia and Kosovo.
- The program countries have a modern legal and regulatory insolvency framework that allows for effective corporate debt restructuring;
- The relevant actors (judges, administrators, etc) dispose of the necessary expertise to make effective use of the improved insolvency framework;
- The private sector (banks, companies, etc.) are aware of the improved insolvency framework and make active use of it.
- Technical assistance in drafting relevant laws, bylaws and regulations tailored to the individual country context;
- Capacity development in the form of training for insolvency judges, practitioners, law enforcement bodies, etc;
- Peer learning opportunities through workshops and seminars;
- Awareness raising activities such as conferences, public discussions and media coverage.