Skopje, FYR Macedonia, May 30, 2018—
IFC, a member of the World Bank Group, has joined forces with the Ministry of Economy of FYR Macedonia and the government of Switzerland to launch a project to improve the country’s business climate by strengthening its insolvency system.
The Debt Resolution Project, which will be implemented over the next four years, is expected to reduce lending risks and lead to increased lending, helping to preserve existing jobs and create new ones. It will cover legal and regulatory reform, as well as providing capacity building services and a public awareness campaign.
“The goal of the Debt Resolution and Business Exit Project is to address current loopholes in the insolvency framework,” said Kreshnik Bekteshi, Minister of Economy. “Our aim is to promote a business-friendly environment by creating an efficient safety net for businesses and investors.”
Sound insolvency regimes allow businesses to collaborate in confidence. A properly functioning insolvency law can be used as an effective last resort for debt recovery or, in the case of debtors, as a shield for businesses in temporary financial distress. An expedited insolvency mechanism will help the latter negotiate temporary relief and agree debt resolution terms out of court and in advance.
“An efficient debt resolution system provides better allocation of capital to businesses and prevents non-performing loans,” said Thomas Lubeck, IFC Regional Manager for Central and Southeast Europe. “The result is increased returns to creditors and better protection for economically viable companies.”
The project will be carried out in partnership with the government of Switzerland, represented by the Swiss State Secretariat for Economic Affairs (SECO).
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
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About SECO
The State Secretariat for Economic Affairs (SECO) is the Swiss Confederation’s competence centre for all issues related to economic policy, including economic development and cooperation. Switzerland supports Macedonia in democratic governance, employment and economic development as well as infrastructure and environment. SECO and SDC, for which Macedonia is a priority country, jointly define and implement the Swiss Cooperation Strategy in Macedonia. From 2017 to 2020, a total of some CHF 76 million is earmarked for Swiss transition cooperation with Macedonia, of which around CHF 26 million is from SECO.
