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

53 Pages Posted: 4 Feb 2022

See all articles by José Garrido

José Garrido

International Monetary Fund (IMF)

Chanda DeLong

International Monetary Fund

Ami Ras

International Monetary Fund (IMF)

Anjum Rosha

International Monetary Fund (IMF)

Date Written: May 1, 2021

Abstract

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.

Keywords: restructuring, insolvency, European countries, EU Directive, policy option, insolvency in Europe, policy choice, implementation option, Solvency, Early warning systems, Corporate insolvency, Data collection, Europe

JEL Classification: F31, E26, G33, G32, C80

Suggested Citation

Garrido, José and DeLong, Chanda and Ras, Ami and Rosha, Anjum, Restructuring and Insolvency in Europe: Policy Options in the Implementation of the EU Directive (May 1, 2021). IMF Working Paper No. 2021/152, Available at SSRN: https://ssrn.com/abstract=4026330

José Garrido (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Chanda DeLong

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Ami Ras

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Anjum Rosha

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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