Restructuring and Insolvency in Europe: Policy Options in the Implementation of the EU Directive

Author/Editor:

Jose M Garrido ; Chanda M DeLong ; Amira Rasekh ; Anjum Rosha

Publication Date:

May 27, 2021

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

The Directive on Restructuring and Insolvency sets minimum standards for restructuring and certain insolvency matters, but its harmonization effect will be limited given multiple options for implementation, likely leading to divergent restructuring models in Europe. These options reveal different policy approaches to the regulation of restructuring and insolvency. The analysis in this paper aims to illustrate the breadth of the policy choices and their consequences for restructuring activity. States should carefully design restructuring procedures to avoid the negative economic effects of certain options that could undermine creditors’ rights or result in unpredictable outcomes, particularly in cross-border cases.

Series:

Working Paper No. 2021/152

Frequency:

regular

English

Publication Date:

May 27, 2021

ISBN/ISSN:

9781513573595/1018-5941

Stock No:

WPIEA2021152

Pages:

53

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