Insolvency and Enforcement Reforms in Italy

July 11, 2016

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Format: Chicago

Jose M Garrido. Insolvency and Enforcement Reforms in Italy, (USA: International Monetary Fund, 2016) accessed December 3, 2024

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

Italian banks are burdened with high levels of nonperforming loans, the cleanup of which depends in important part on the efficiency of insolvency and enforcement processes. Traditionally, these processes in Italy have taken very long, hampering the timely cleanup of balance sheets. In response, the authorities have legislated a number of measures. This paper explores the recent insolvency and enforcement reforms and the remaining challenges. These reforms introduce important positive changes that are expected to yield full benefits over the medium to long term. The efficacy of the reforms, including to deal with the current stock of high nonperforming loans, can be enhanced by introducing effective out-of-court enforcement mechanisms, supplemented by a more intensive use of informal and hybrid debt-restructuring solutions. Moreover, there is an urgent need to rationalize the system, which over the years has become very complex and intricate.

Subject: Asset and liability management, Corporate insolvency, Debt restructuring, Financial crises, Financial institutions, Financial sector policy and analysis, Legal support in revenue administration, Nonperforming loans, Revenue administration, Solvency

Keywords: Corporate insolvency, Debt restructuring, Enforcement of debt, Enforcement procedure, Enterprise, Enterprise insolvency regime, Insolvency, Insolvency administrator, Insolvency framework, Insolvency process, Legal support in revenue administration, Nonperforming loans, Private debt, Process, Reorganization process, Solvency, Western Europe, WP

Publication Details

Pages:

21
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/134
Stock No:

WPIEA2016134
ISBN:

9781475570243
ISSN:

1018-5941

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