Policy Options for Supporting and Restructuring Firms Hit by the COVID-19 Crisis
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Summary:
This paper presents principles that could guide the design of more targeted policy support and facilitate the restructuring of firms adversely impacted by the COVID-19 pandemic. To this end, the paper takes stock of vulnerabilities and risks in the enterprise sector and assesses countries’ preparedness to handle a large-scale restructuring of businesses. Crisis preparedness of insolvency systems is measured according to a newly designed indicator that includes five dimensions of the insolvency and restructuring regime (out-of-court restructuring, hybrid restructuring, reorganization, liquidation, and the institutional framework). Vulnerabilities tend to be more pronounced in jurisdictions with shortcomings in crisis preparedness, and those countries need to step up efforts to improve their insolvency systems.
Series:
Departmental Paper No 2022/002
Subject:
Asset and liability management Corporate sector Crisis prevention Debt restructuring Economic sectors Financial crises Financial sector policy and analysis International organization Political economy Solvency
Notes:
Frequency:
occasional
English
Publication Date:
February 23, 2022
ISBN/ISSN:
9781513593463/2616-5333
Stock No:
POSRFEA
Pages:
78
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