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Add to Preferred SourcesIFC, a member of the World Bank Group, has joined forces with the Ministry of Economy of FYR Macedonia and the government of Switzerland to launch a project to improve the country’s business climate by strengthening its insolvency system.
The Debt Resolution Project, which will be implemented over the next four years, is expected to reduce lending risks and lead to increased lending, helping to preserve existing jobs and create new ones. It will cover legal and regulatory reform, as well as providing capacity building services and a public awareness campaign.
“The goal of the Debt Resolution and Business Exit Project is to address current loopholes in the insolvency framework,” said Kreshnik Bekteshi, Minister of Economy. “Our aim is to promote a business-friendly environment by creating an efficient safety net for businesses and investors.”
Sound insolvency regimes allow businesses to collaborate in confidence. A properly functioning insolvency law can be used as an effective last resort for debt recovery or, in the case of debtors, as a shield for businesses in temporary financial distress. An expedited insolvency mechanism will help the latter negotiate temporary relief and agree on debt resolution terms out of court and in advance.
“An efficient debt resolution system provides a better allocation of capital to businesses and prevents non-performing loans,” said Thomas Lubeck, IFC Regional Manager for Central and Southeast Europe. “The result is increased returns to creditors and better protection for economically viable companies.”
The project will be carried out in partnership with the government of Switzerland, represented by the Swiss State Secretariat for Economic Affairs (SECO).
Original source: IFC
Published on 30 May 2018