EBRD launches assessment tool to help mitigate coronavirus impact
Online Insolvency Assessment on Business Restructuring
Many businesses in EBRD regions affected by the pandemic will need restructuring support
National legislation assessment will assist in addressing gaps in insolvency frameworks
Online questionnaire will be available for public consultation until 31 October 2020 at www.ebrd-restructuring.com.
The European Bank for Reconstruction and Development (EBRD) is conducting an assessment on business restructuring tools in all 38 economies where the EBRD is active. The assessment aims to provide detailed guidance on legislative gaps to address an expected increase in businesses needing to use formal restructuring procedures following the coronavirus pandemic. It also aims to provide an overview of the options within pre-insolvency and insolvency frameworks across these economies.
Given the global scale of the coronavirus crisis, many businesses around the world have experienced an interruption in economic activity. Many businesses may need to restructure both operationally and financially, while others may even cease to be viable. This exercise will review existing national legislation in all EBRD economies of operations to assess readiness and effectiveness of the local insolvency systems and identify any strengths and weaknesses, taking into consideration the views of interested parties and professionals.
The Assessment is managed by the EBRD’s Legal Transition Team, which supports legal and institutional reform in a number of commercial areas, including insolvency.
The EBRD initiative is supported by the International Development Law Organization (IDLO), the European Commission’s Directorate-General for Structural Reform Support (DG Reform), INSOL Europe, and INSOL International. The EBRD is also working closely with Investment Councils, which have been established with EBRD involvement in Albania, Armenia, Belarus, Georgia, Kosovo, Kyrgyz Republic, Moldova, Tajikistan, Tunisia, Ukraine and Uzbekistan, to reach as many stakeholders as possible and ensure public and private sector country discussions on the Assessment are fully coordinated
The Albanian Investment Council supports this assessment and is advocating for its completion by professionals, legal advisors, business community representatives and other stakeholders, whose input is considered invaluable for the success of this assessment. The insolvency framework in Albania has been one of the working areas of our work since 2015, being involved in the consultations of the Law “On Bankruptcy” (IC meeting II).
The results of the assessment as well as a report summarising its findings will be made publicly available online thereafter.
See more at www.ebrd.com/news