Cover Departmental Papers
Policy Options for Supporting and Restructuring Firms Hit by the COVID-19 Crisis
Author: Ms. Juliana Dutra Araujo, Jose M Garrido, Emanuel Kopp, Mr. Richard Varghese, and Weijia Yao
Series:
Departmental Papers
Volume/Issue:
Volume 2022: Issue 002
Language:
English
Publication Date:
23 Feb 2022
DOI:
https://doi.org/10.5089/9781513593463.087
ISBN:
9781513593463
ISSN:
2616-5333
Pages:
78
Keywords:
Corporate Debt; Solvency Support to Enterprises; Insolvency; Reorganization; Liquidation; Restructuring; COVID-19; policy support scheme; policy option; restructuring firm; nonfinancial firm; solvency support; untargeted support; Solvency; Debt restructuring; Crisis prevention; Corporate sector; Global
Legal-disclaimer:
The Departmental Paper Series presents research by IMF staff on issues of broad regional or cross-country interest. The views expressed in this paper are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (14.9 MB) Download Epub
This paper presents principles that could guide the design of more targeted policy support and facilitate the restructuring of firms adversely impacted by the COVID-19 pandemic. To this end, the paper takes stock of vulnerabilities and risks in the enterprise sector and assesses countries’ preparedness to handle a large-scale restructuring of businesses. Crisis preparedness of insolvency systems is measured according to a newly designed indicator that includes five dimensions of the insolvency and restructuring regime (out-of-court restructuring, hybrid restructuring, reorganization, liquidation, and the institutional framework). Vulnerabilities tend to be more pronounced in jurisdictions with shortcomings in crisis preparedness, and those countries need to step up efforts to improve their insolvency systems.
Cover Departmental Papers
Departmental Papers
ISSN:
2616-5333
Publisher:
International Monetary Fund

dimension badge: