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PRESS RELEASE

Poland to increase the effectiveness of the insolvency system with the help of the World Bank

January 21, 2010



Poland signs Letter of Intent with the World Bank to collaborate in further developing the effectiveness Polish insolvency institutions and infrastructure

Warsaw, January 21, 2010 — Today in the Polish Ministry of Justice, representatives of the Ministry of Justice, the Polish National School of Judiciary and Public Prosecution, the Warsaw School of Economics and the World Bank signed a Letter of Intent to work together in strengthening Polish legal institutions. The Letter of Intent opens a number of possibilities for cooperation but is focused in particular on increasing the effectiveness of the Polish insolvency system and continues the dialogue between Poland and the World Bank in this area.

This work builds on the diagnostic assessment of Polish insolvency laws and practices undertaken in 2007/2008 by the World Bank under its Insolvency and Creditor/Debtor Rights Reports on the Observance of Standards and Codes initiative.

Signing the Letter of Intent is a very important step in our cooperation with the World Bank and with the experts of the Polish National School of Judiciary and Public Prosecution and of the Warsaw School of Economics,” said Jacek Czaja, the Undersecretary of State in the Ministry of Justice in the Ministry of Justice. “Within this cooperation, we would like to review the bankruptcy system institutions, their infrastructure and mechanisms and see where we can increase the efficiency of the whole system. Thanks to the experts of our three partners, we will be able to achieve this goal.”

The Letter of Intent indicates that the Parties will seek to cooperate in particular in the following ways:

  • Carrying out a comprehensive comparative study of the Polish Legal Framework for Insolvency and Enforcement Practices. The study will examine economic, regulatory and institutional bases for alternatives to bankruptcy and their potential impact.
  • Preparing a medium and long term (5-10-year) training strategy for judges, prosecutors and insolvency practitioners as well as a sector and research strategy. This strategy document should include designs for training programs as well as a road map for transforming the current National School for Judges and Prosecution into a modern institution with two functions: (i) management of legal education and training, and (ii) management of research related to the operation of courts and public prosecution.
  • Preparing a business plan for updating training facilities of the Polish National School of Judges and Public Prosecution. The plan should include design standards for training facilities.
  • Carrying out promotional activities aimed at broadening domestic and international cooperation between various professions (ex. economists, practicing lawyers, academics and researchers, entrepreneurs and representatives of NGOs) for the purpose of discussing and developing relevant insolvency related laws, regulations and guidance.

All the above should work to strengthen the effectiveness of Polish law, infrastructure and institutional capacity in the area of insolvency from a regulatory as well as an economic perspective.

We are very pleased to be a part of this project offering our expertise and experience,” said Thomas Laursen, World Bank, Country Manager for Poland and the Baltic Countries. “Within this project, the World Bank will carry out analytical work and provide advisory services, including technical assistance, institutional development and external training aimed at improving the efficiency of Polish bankruptcy institutions. I am also certain that the possibility to work with the experts of the Ministry of Justice, Warsaw School of Economics and the Polish National School of Judiciary and Public Prosecution is an excellent occasion for sharing knowledge and exchanging expertise.”

Warsaw School of Economics, Collegium of Business Administration is aiming to participate in the collaborative arrangement by developing research and research methodologies to examine insolvency law from both an economic and regulatory perspective, taking into account the competitiveness aspects underlying the operation of insolvency law and its reform.

The Polish National School of Judiciary and Public Prosecution will research the competency gap with respect to judges, prosecutors and auxiliary personnel, including experts and receivers, in order to provide an in-depth analysis of the training needs for justice system personnel, experts and insolvency administrators dealing with the Polish institutional framework for insolvency.

The cooperation between the parties under the Letter of Intent is stated to continue for 24 months starting from January 21, 2010 and can be extended beyond that period by agreement between the parties.


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