Policy Options for Supporting and Restructuring Firms Hit by the COVID-19 Crisis
Departmental Papers, February 23, 2022
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- Policy Options for Supporting and Restructuring Firms Hit by the COVID-19 Crisis
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Bibliographic details
- Authors: Juliana Dutra Araujo, Jose M Garrido, Emanuel Kopp, Richard Varghese, Weijia Yao
- Published: February 23, 2022
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9781513593463.087
Authors and publication
- By Juliana Dutra Araujo, Jose M Garrido, Emanuel Kopp, Richard Varghese, Weijia Yao
- February 23, 2022
- Departmental Paper No 2022/002, Issue: 002, Volume: 2022
- Pages: 78
- DOI: https://doi.org/10.5089/9781513593463.087
- ISBN: 9781513593463
- ISSN: 2616-5333
- Stock No: POSRFEA
Core purpose and scope
- Presents principles to guide the design of more targeted policy support and to facilitate restructuring of firms adversely impacted by the COVID-19 pandemic.
- Takes stock of vulnerabilities and risks in the enterprise sector.
- Assesses countries’ preparedness to handle a large-scale restructuring of businesses.
Crisis-preparedness measurement
- Introduces a newly designed indicator measuring crisis preparedness of insolvency systems.
- The indicator includes five dimensions of the insolvency and restructuring regime:
- out-of-court restructuring
- hybrid restructuring
- reorganization
- liquidation
- the institutional framework
Key findings
- Vulnerabilities and risks in the enterprise sector are documented and assessed relative to insolvency system preparedness.
- Vulnerabilities tend to be more pronounced in jurisdictions with shortcomings in crisis preparedness.
- Jurisdictions with such shortcomings need to step up efforts to improve their insolvency systems.
Policy implications and options (high-level)
- Design more targeted policy support to minimize untargeted support to nonviable firms.
- Facilitate restructuring processes to enable reallocation of resources and preserve viable firms.
- Improve insolvency and restructuring frameworks across the five measured dimensions to enhance crisis preparedness.
Thematic subjects and keywords
- 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
- Keywords: Corporate Debt; Corporate sector; COVID-19; Crisis prevention; Debt restructuring; Global; Insolvency; Liquidation; nonfinancial firm; policy option; policy support scheme; Reorganization; Restructuring; restructuring firm; Solvency; solvency support; Solvency Support to Enterprises; untargeted support
Source: IMF Departmental Paper No 2022/002, "Policy Options for Supporting and Restructuring Firms Hit by the COVID-19 Crisis" (February 23, 2022).
Content in this bundle
- Dataset overview: posrfea-s001
- posrfea