(World Bank: Washington, DC, 2001-04) Johnson, Gordon W.
This report assesses the Czech Republic's insolvency and creditor rights systems pursuant to a joint International Monetary Fund-World Bank program to observe compliance with international standards and codes (ROSC) in areas pivotal to a country's financial sector stability and market integrity. This particular assessment is based on the World Bank Principles and Guidelines for Effective Insolvency and Creditor Rights Systems (Principles), and reviews compliance in four key areas: (i) creditor rights (including secured transactions) and enforcement procedures; (ii) the legal framework for corporate insolvency; (iii) the regulatory framework to implement the insolvency system, and (iv) the enabling framework for credit risk management and informal corporate workouts. These systems constitute an essential cornerstone of commercial confidence and the bedrock for sound credit management and resolution. The conclusions in this assessment are based on a review of the Bankruptcy and Composition Act, the laws dealing with the creation, registration and enforcement of pledges and security interests (e.g., Commercial Code, Civil Code, Civil Procedure Code, Public Auctions Law, and the Execution Law), and other relevant pieces of legislation.
