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11/12/2002 - The burden of bad debts in Asia, estimated at US$ 2 trillion, threatens the region's banks and national economies, slows economic recovery and increases the risk of another collapse. Resolving the debt situation will not be easy, but more effective insolvency and creditor rights systems can help countries in Asia to deal with their non-performing loans. The Organisation for Economic Co-operation and Development (OECD), in partnership with AusAID, the Government of Japan, the World Bank and the Asian Development Bank, has organised the second Forum for Asian Insolvency Reform (FAIR), to be hosted by the Ministry of Justice of the Kingdom of Thailand to discuss regional insolvency-reform developments, the use of informal workouts, and Thai insolvency practices and prospects.
FAIR participants include regulators, business leaders and experts from the Asian region and other international experts.
The Forum for Asian Insolvency Reform, at the Shangri-La Hotel in Bangkok, 16 - 17 December, will be open to journalists. The media is also invited to a closing news conference at 6.30 p.m. on Tuesday 17 December with Mats Isaksson, Head of OECD's corporate affairs; the Honourable Wisit Wisitsora-At, Thai Ministry of Justice; and Lampros Vassiliou, OECD lead consultant.
There have been positive reforms - many Asian countries have enacted new reorganisation laws aimed at saving viable businesses, developed frameworks for informal workouts outside the court system, created asset management companies and adopted other techniques aimed at facilitating corporate and financial sector restructuring. Major problems have however arisen in implementation of these initiatives. Most countries have still not put in place effective and efficient insolvency procedures. This lack of solid, well-functioning procedures for the liquidation of unviable businesses and the speedy restructuring of viable businesses is a disincentive to investors and a drag on national productivity. The future seems to hold further hardships for Asian taxpayers who have already borne the approximately $370 billion cost of the region's last economic crisis.
This Forum for Asian Insolvency Reform follows one held in 2001, in Indonesia. Participants in Bangkok will hear an overview of regional developments and policy. They will discuss various proposals for law reform in the region and issues arising in the design of insolvency law systems and look at the techniques, development, benefits and dangers of informal workouts. The second day of the Forum will include a review of the insolvency regime in Thailand, with participants giving their assessments and recommendations.
For further information, or to attend the Forum and the news conference, journalists are invited to contact Helen Fisher, OECD Media Relations Division (tel. [33] 1 45 24 80 97) or Robert Zafft, OECDFinancial, Fiscal and Enterprise Affairs (tel. [33] 1 45 24 43 44 ).
See more information on corporate affairs and on this Second Forum.
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