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Principles for Effective Insolvency and Creditor and Debtor Regimes (English)

Effective creditor and debtor rights and insolvency systems are an important element of financial system stability. The World Bank Group accordingly has been working with partner organizations to develop principles for insolvency and creditor and debtor rights systems. The principles for effective insolvency and creditor and debtor regimes are a distillation of international best practice on design aspects of these systems, emphasizing contextual, integrated solutions and the policy choices involved in developing those solutions. The principles have been designed as a broad-spectrum assessment tool to assist countries in their efforts to evaluate and improve core aspects of their commercial law systems that are fundamental to a sound investment climate, and to promote commerce and economic growth. Efficient, reliable, and transparent creditor and debtor regimes and insolvency systems are of key importance for the reallocation of productive resources in the corporate sector, for investor confidence, and for forward-looking corporate restructuring.


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    Principles for Effective Insolvency and Creditor and Debtor Regimes

  • Keywords

    European Bank for Reconstruction and Development; credit information system; Micro, Small and Medium Enterprise; security rights; Micro and Small Enterprises; legal framework for insolvency; permissible uses of information; out of court workout; range of credit product; impartial resolution of insolvency; Micro and Small Business; debt and equity market; application of contract law; enforcement of creditor right; high level of accuracy; accounting and auditing standard; working practice; insolvency system; international good practice; cost of credit; sound investment climate; effective insolvency system; insolvency proceeding; global financial crisis; right of creditor; operation of law; claims resolution procedure; interest rate environment; credit information service; lack of transparency; availability of credit; debtor right; commercial insolvency law; law and regulation; multilateral development bank; standard of transparency; promotion of entrepreneurship; types of property; functioning market economy; public registry system; modern market economy; goods in transit; secured transactions legislation; enforcement of security; majority of creditor; withdrawal of fund; secondary market liquidity; financial system stability; types of finance; insolvency law system; informal workout procedure; regulation of workout; disposition of asset; demand risk; types of asset; corporate financial distress; quality of information; cost of access; flow of credit; judicial decision making; risk of default; flow of capital; commercial law system; benefit of creditor; accuracy of information; conversion of proceeding; number of assets; similarly situated creditor; procedures for debt; good corporate governance; land use right; higher interest rate; reservation of title; accurate financial information; recovery of possession; decline in investment; corporate financial difficulty; category of assets; recoveries by creditor; perceptions of risk; social protection mechanism; weak financial institutions; violation of law; private sector employment; return to creditor; movable asset; risk allocation; legal system; Corporate Workout; foreign creditor; modern credit; public policy; clear rules; industrial country; Country Systems; Financial Sector; registration system; immovable asset; movable properties; credit system; substantive law; natural person; legal control; external factor; corporate sector; systemic crisis; property right; financial difficulties; intellectual property; personal debt; institutional framework; insolvency regime; creditor passivity; risk assessment; efficient liquidation; legal mechanism; financial viability; operational work; distressed enterprise; enforcement process; creditor remedy; legal process; downside risk; risk premium; domestic creditor; enforcement system; efficient system; debt claim; credit protection; affordable price; Financial Stability; international community; legal environment; financial instrument; supervision mechanism; national system; unsecured credit; debt obligation; contractual right; managing risk; effective systems; contractual agreement; efficient mechanism; productive resource; investor confidence; corporate restructuring; best practice; reasonable manner; fair treatment; transfer ownership; legal entities; legal entity; domestic policies; credit agreement; applicable law; global trend; Debt Enforcement; Corporate Law; business debt; judicial process; institutional mechanism; market environment; loan pricing; transparent procedure; dynamic markets; informal procedure; secured lending; foreign proceeding; crossborder insolvency; existing creditor; maximum extent; commercial relationship; commercial transaction; severe cases; financing technique; individual creditor; equitable treatment; viable business; privacy concern; nonviable business; commercial system; debt-equity conversion; neutral tax; court process; enterprise insolvency; international business; corporate insolvency; Cash flow



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Principles for Effective Insolvency and Creditor and Debtor Regimes (English). Washington, D.C. : World Bank Group.