2021 World Bank & INSOL International’s Legislative & Regulatory Group: COVID-19 response and the challenges ahead
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COVID-19 continues to present a variety of unique challenges for insolvency regulators and lawmakers worldwide. In March 2020, closing borders and widespread uncertainty underscored a crisis, prompting authorities around the world to devise and rapidly roll out measures designed to shield businesses, financial institutions and individuals against the economic effects and prevent widespread economic collapse. In Europe, for example, there were forbearance and other legal measures introduced to temporarily suspend the exercise of creditors’ rights. The challenge in this next period of the crisis is to manage uncertainty, while phasing out government support and temporary legal measures in a manner that facilitates economic recovery. These measures are captured by the joint World Bank and INSOL International Global Guide: Measures adopted to support distressed businesses through the COVID-19 crisis.