- April 8, 2021
An efficient and predictable insolvency framework is essential to safeguard economic resilience of APEC economies. Good insolvency regimes ensure that businesses have the resources to prioritize and continue day-to-day operations when facing financial instability, therefore reducing failure rates among small and medium-size enterprises and liquidation of profitable businesses. In times of external shocks – including the COVID-19 pandemic – a secure insolvency regime is all the more vital. Under the APEC Economic Committee and aligned with the Third Ease of Doing Business (EoDB) Action Plan’s resolving insolvency priority area, the Consultation Paper on Resolving Corporate Insolvency in APEC Economies in the Aftermath of the COVID-19 Pandemic focuses on how APEC economies can improve insolvency resolution systems to meet the challenges made most relevant by the COVID-19 pandemic. The paper details current insolvency systems in APEC economies and offers proposed strategies for managing waves of company insolvencies through selecting and prioritizing reforms.