FSB: Publishes peer review on out-of-court corporate debt workouts
- FSB is an international body that monitors and makes recommendations about the global financial system
- Financial Stability Board published a Thematic Review on Out-of-Court Corporate Debt Workouts
- The objective of the peer review is to support COVID-19 response and recovery efforts by examining member jurisdictions’ practices
- The review finds that jurisdictions have adopted various approaches to complement in-court insolvency proceedings
- SMEs face challenges in out-of-court workout frameworks mainly due to their complexity and cost
- Financial sector authorities’ involvement in out-of-court workouts and debt restructuring can sometimes be direct
