Insolvency Law To Improve Business Environment

Actions towards parliamentary passage of an Insolvency Act are proceeding as planned as part of the growth-enhancing structural reforms being established to improve the business environment in Jamaica, according to the October 2013 report of the International Monetary Fund (IMF), The Gleaner reported. The Government has agreed that improvement to the insolvency framework is one of the pieces of legislation it expects to finalise before the end of the year. The Government has not elaborated, in the last two reports submitted to the IMF, on the wider objectives of a new insolvency regime. However, in an article based on a report published by the IMF's legal department, titled Promoting Orderly and Effective Insolvency Procedures, the fund said that effective insolvency systems facilitate the rehabilitation of enterprises and provide an efficient mechanism for the liquidation of those enterprises that cannot be rehabilitated. The IMF said the reform of the insolvency system has become an important component of its economic support programmes in many countries because of the impact it has on a country's economic and financial system. "An effective insolvency system can also enable financial institutions, in a country whose financial sector is in distress, to curtail the deterioration of their assets by providing them with a means of enforcing their claims," the report said. Read more.