Albania Debt Resolution

completed

The Project will work towards identification of the key legislative obstacles to the implementation of viable debt resolution mechanisms and then supporting the improvement and implementation of such legislation. The emphasis of reform will be on promoting rehabilitation of viable companies and increasing loan recovery. The Program will also help develop provisions for fast-track recognition of negotiated out-of-court workouts for Albanian framework and will work on the review of the insolvency and other provisions to allow and promote pre-packaged solutions; on design and implementation of special filing and hearing procedures; and incentives that would encourage debtors and creditors to opt for out-of-court resolutions approved by the court in an expedited fashion. The Program will also work on enhancing the capacity of relevant professionals such as judges, attorneys and business people, through training on the principles of bankruptcy and insolvency, valuation and maximization of assets. It will encompass activities and events that would lead towards increased awareness of each of the stakeholders' roles and responsibilities, as well as of the individual and overall benefits of exercising the opportunity for debt resolution (versus liquidation).