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

By Jose M Garrido, Chanda M DeLong, Amira Rasekh, Anjum Rosha

May 27, 2021

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Format: Chicago

Jose M Garrido, Chanda M DeLong, Amira Rasekh, and Anjum Rosha. Restructuring and Insolvency in Europe: Policy Options in the Implementation of the EU Directive, (USA: International Monetary Fund, 2021) accessed December 21, 2024

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.

Subject: Corporate insolvency, Data collection, Early warning systems, Economic and financial statistics, Financial crises, Financial sector policy and analysis, Solvency

Keywords: Corporate insolvency, Data collection, Early warning systems, EU Directive, Europe, European countries, Implementation option, Insolvency, Insolvency in Europe, Policy choice, Policy option, Restructuring, Solvency

Publication Details

Pages:

53
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2021/152
Stock No:

WPIEA2021152
ISBN:

9781513573595
ISSN:

1018-5941

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