Managing Corporate Distress in the Philippines: Some Policy Recommendations

IMF Working Papers, September 1, 1998

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Managing Corporate Distress in the Philippines: Some Policy Recommendations

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Bibliographic details

• Authors: Charles Woodruff, G. C. Lim
• Published: September 1, 1998
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451930153.001

Summary

• While not widespread, the Philippine corporate sector is showing some signs of stress.
• The paper reviews:
  • the exposure of banks to distressed corporate borrowers,
  • the ownership structure of the corporate sector, including the interlocking relationship of corporations and banks,
  • the legal framework in place for the resolution of debts of distressed companies and the protection of creditor rights.
• It recommends immediate measures to improve transparency and regulatory oversight, and to quickly resolve the debts of distressed companies by strengthening the policy framework and institutional capacity for suspension of debt payments by the Securities and Exchange Commission.

Key findings

• Exposure of banks to distressed corporate borrowers is reviewed (no aggregate numeric exposure provided in the summary).
• Corporate ownership structure features interlocking relationships between corporations and banks.
• Existing legal framework for debt resolution and creditor protection is analyzed.

Policy recommendations

• Immediate measures to improve transparency and regulatory oversight.
• Strengthen the policy framework and institutional capacity for suspension of debt payments by the Securities and Exchange Commission to enable quicker resolution of debts of distressed companies.

Subjects and keywords

• Subject: Asset and liability management, Bank credit, Banking, Business enterprises, Corporate sector, Debt restructuring, Economic sectors, Financial statements, Money, Public financial management (PFM)
• Keywords: Bank credit, Business enterprises, business house, company, company manager, Corporate debt, corporate ownership, Corporate sector, debt, debt restructuring, debt service, debtor company, debtor company's operation, debtor enterprise, distressed company, Financial statements, solvent company, tax liability, WP

Content in this bundle

• Managing Corporate Distress in the Philippines: Some Policy Recomendations - WP/98/138
  • Managing Corporate Distress in the Philippines: Some Policy Recomendations - WP/98/138 (Markdown version)
  • Managing Corporate Distress in the Philippines: Some Policy Recomendations - WP/98/138 (PDF)