Developing Sound Insolvency Systems in the MENA
21 May 2007, Cairo
Effective insolvency systems, based on developed legal frameworks, relying on a sound judicial system and on the availability of lawyers and accountants experienced in insolvency proceedings, play a critical role for orderly exit of insolvent corporations and for the efficient reallocation of resources.
In MENA jurisdictions, where banks are the dominant source of corporate finance, access to capital in the region will depend on the legal rights of banks as creditors, on their enforceability and on the level of development of the underlying laws, judiciary and insolvency profession.
Meeting on Developing Sound Insolvency and Creditor Right Systems in the MENA
The MENA-OECD Investment Program, in cooperation with the Hawkamah Institute for Corporate Governance, the World Bank and INSOL International is organizing a regional meeting on developing sound insolvency and creditor right systems in the MENA. The purpose of the meeting is to expand the scope of the MENA-OECD Working Group on Corporate Governance, take stock of existing insolvency legislation, highlight existing gaps, address key issues of reform and establish a network of insolvency experts for the MENA region.
The input of the private sector will be sought, in co-operation with INSOL International, the international organisation of insolvency professionals.
The meeting will be co-hosted by Egypt’s General Authority for Investment and Free Zones and the Egyptian Institute of Directors. It will take place in the: New Building of GAFI, 3 Salah Salem Road, Nasr City, Cairo, 11562, Egypt (conference room in front of the reception).
The meeting will bring together experts from Bahrain, Egypt, Jordan, Lebanon, Morocco and the United Arab Emirates, together with experts from OECD countries as well as from international and regional organisations. They will include representatives of MENA Ministries of Justice, Ministries of Finance, Central Banks, representatives of the judiciary, the financial sector and insolvency professionals. The participants will attempt to identify priorities for insolvency reforms in the MENA and options for regional co-operation and dialogue on the topic.
Timing of the meeting and output
The meeting will take place in Cairo (Egypt) on 21 May 2007.
The issues discussed at the meeting, will be summarised in a publication, drawing on the country presentations and general discussions. The publication will include a Survey on insolvency and creditor rights’ survey, which will be undertaken by Hawkamah & INSOL with the support of the World Bank and the OECD. It will also reference the international guidance, as well as approaches applied in non-MENA countries, which could be useful in designing proposals for reforms in the region. The results of the survey will be presented at a high-level regional meeting, which will discuss its findings and provide recommendations and policy options for consideration by MENA policy makers.
The meeting is expected to launch an on-going initiative on creditors' rights and insolvency systems for the MENA region. This initiative will convene a Network of MENA policy makers, experts and private sector representatives on an annual or bi-annual basis to exchange information and experience and to provide impetus for action at national and regional levels.