Reforming the Legal and Institutional Framework for the Enforcement of Civil and Commercial Claims in Portugal

Author/Editor:

Sebastiaan Pompe ; Wolfgang Bergthaler

Publication Date:

December 28, 2015

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper discusses the recent major reforms in the area of civil and commercial claims enforcement undertaken by the Portuguese authorities in the context of the IMF/EU-supported adjustment program. The economic literature has long recognized that slow claims enforcement affects economic growth, foreign direct investment, credit and labor markets, and firm size. The Portuguese authorities together with IMF/EU staff deployed a novel approach that has focused on incentives tackling weaknesses in the enforcement process with the aim of increasing the efficiency and effectiveness of claims enforcement and resolving court backlogs. The paper finds impressive quantifiable changes affecting, in particular, court backlog reduction, court processing speed, and private debt recovery. The economic literature suggests that this will impact positively on the payment culture and overall growth, even if such impact cannot be determined at this stage.

Series:

Working Paper No. 15/279

Subject:

English

Publication Date:

December 28, 2015

ISBN/ISSN:

9781498387989/1018-5941

Stock No:

WPIEA2015279

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

41

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