Asian Insolvency Systems: Closing the Implementation Gap

image of Asian Insolvency Systems: Closing the Implementation Gap

As Asian markets are now increasingly integrated in the world economy their domestic insolvency systems need to meet the expectations of international investors and lenders. Many Asian jurisdictions are responding by reforming  insolvency laws, introducing new procedures and strengthening institutions, but others are much less active. This conference proceedings includes papers showing how far various Asian countries have come in building effective and predictable insolvency systems and shows to what extent their systems provide confidence to investors and lenders.



Insolvency laws in South Asia: recent trends and developments

South Asia is a multiracial and multilingual region, and the economic and legal systems of its countries reflect the customs of its various communities. Expanding at a rate in excess of 8% a year, the Indian economy is one of the fastest growing economies not only in the region but in the world. Constantly striving to raise the annual growth rate to 8-10%, the political leadership is taking steps to simplify tedious regulations and procedures, rationalise policies, and introduce an effective legal and regulatory framework in all sectors. In Sri Lanka, the breakdown of the cease-fire between the government and the Liberation Tigers of Tamil Elam continues to haunt the economy. Due to the cease-fire, Sri Lanka’s economy grew at a rate of 6% of gross domestic product (GDP) in 2005. Sri Lanka continues to make steady progress in financial sector reforms, as well as in improving the efficiency of the banking sector. In Nepal, the Maoist insurgency brought the economic and financial system to a near state of collapse. The economic future of the country remains uncertain until a long-term political solution is achieved. Recent positive political developments have raised hopes of economic stability. A number of significant ordinances were issued in the last three years to introduce new laws or amend the existing as part of legal, judicial and financial sector reforms. These ordinances would require approval of the new parliament. Pakistan and Bangladesh continue to take measures to strengthen their financial and legal systems as part of their overall economic stabilisation programmes. Both countries have enacted copious legislation concerning the financial sector since 1990.


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