|
EBRD survey shows progress in insolvency laws in southeastern Europe
Bank presents autumn edition of Law in transition journal
The EBRD is launching the Autumn 2007 online edition of its Law in transition journal in Romania today. This edition focuses on ways to improve insolvency systems. It incorporates the findings of a recent EBRD survey on insolvency legislation in south-eastern Europe.
In late 2006, the EBRD conducted a regional comparative survey on insolvency legislation in south-eastern Europe. The study, whose findings are revealed in the latest Law in transition edition, compared the systems for regulating, training and overseeing the conduct of those in charge of administering bankrupt companies, the so-called ‘insolvency office holders’. It provides a useful basis for evaluation of the current regulations and highlights areas of deficiency that may be drawn to the attention of the relevant ministry or regulatory authority in each country.
The 8 countries covered in the survey – Albania, Bosnia and Herzegovina, Bulgaria, FYR Macedonia, Montenegro, Romania, Serbia, and Slovenia – show varying degrees of compliance with international standards and most have made substantial progress in the development of legislation in this area.
Romanian insolvency-related legislation scored medium compliance in the EBRD survey. Since the survey was conducted, however, the government has introduced legislation to deal with licensing and registration of insolvency practitioners by placing them under the control of the National Association of Practitioners in Insolvency and delegating significant authority to the Association. “This demonstrates Romania’s commitment to ensuring that the insolvency system in the country is served by highly qualified and capable insolvency practitioners”, said Michel Nussbaumer, EBRD Chief Counsel in charge of the Bank’s Legal Transition Programme.
The Romanian model for overseeing insolvency practitioners is primarily self-regulating and provides and important and interesting alternative to government-operated regulatory regimes. “It is a model that may provide a guide for other countries to follow as the experience and professionalism of their insolvency practitioners develops”, said EBRD Insolvency Counsel Jay Allen.
Legal reform is a core dimension of EBRD’s work. Through its Legal Transition Programme (LTP), the Bank contributes to the improvement of the investment climate in its 29 countries of operation by supporting the creation of an investor-friendly, transparent and predictable legal environment. The LTP’s activities focus on the development of legal rules and the establishment of legal institutions and culture on which a vibrant market-oriented economy depends.
The LTP publishes a bi-annual publication Law in transition through which the EBRD stimulates debate on legal reform in the transition economies.
|
