BUCHAREST, JUNE 15, 2015—The Ministry of Justice, the Legal, Discipline, and Immunity Commission of the Chamber of Deputies, and the World Bank discuss the challenges and opportunities related to Romania’s Insolvency Code – a year after its enactment – and the next steps towards implementing the new Personal Insolvency Law.
Romanian judges, insolvency practitioners, lawyers, accountants, bankers, business associations, lawmakers, and officials from relevant public authorities in Romania took part in the conference discussion, held at the Palace of the Parliament on June 11.
On corporate insolvency, the debate focused on the progress made by Romania in the area of insolvency and the creditor-debtor rights regime, a year after the enactment of the Insolvency Code. The Insolvency Code benefitted from World Bank assistance through recommendations from the April 2014 Report on the Observance of Standards and Codes on Insolvency and Creditor-Debtor Regimes, which applies principles of international best practice.
On personal insolvency, Romania will become one of the first countries in the central European sub-region to embark on implementing a new legal framework. The conference debate focused on the challenges concerning the insolvency of natural persons, and on the opportunities for addressing organizational and capacity issues towards an effective implementation of the new legal framework.
“The effectiveness of the insolvency procedures will highly depend on inter-institutional coordination,” said Suzy Yoon, Senior Operations Officer in the World Bank’s office in Romania. “In order to be effective, such coordination shall entail a clear timetable and an established action plan for the procedures to be put in place, in a relatively short period of preparation time for implementation until the new law enters into force.”
This conference drew upon the role of the World Bank as a knowledge broker in the area of developing principles for sound insolvency national frameworks, and served as a platform to discuss technical and policy aspects with the goal of acknowledging the challenges, but also identifying the opportunities.