By Joel Poultney (May 9, 2022, 5:13 PM BST) -- Governments must assess the efficiency of their out-of-court insolvency proceedings, a global standards-setter said on Monday, as it looks to bolster protection for distressed companies seeking more cost-effective and flexible debt resolution procedures.
The Financial Stability Board, which advises governments on financial standards, said in a peer review paper that its members must strengthen the procedures that allow privately negotiated restructurings between debtors and creditors, known as out-of-court workouts, or OCWs.
The FSB issued the call in anticipation of a jump in the number of distressed companies requiring the procedure.
Tomoko Amaya, vice minister for international affairs at the Japan Financial...
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