IFC, ABJ launch effort to improve bankruptcy process

AMMAN — International Finance Corporation (IFC), a member of the World Bank Group, and the Association of Banks in Jordan (ABJ) announced Saturday in a press statement a set of banking industry guidelines designed to help indebted businesses get back on their feet.

"The guidelines, which have been endorsed by the Central Bank of Jordan, will make it easier for financially-troubled firms to reach an agreement with creditors outside of the court system," the IFC said in the statement.

"The guidelines will give viable businesses valuable breathing room, allowing them to re-organise and emerge from the process stronger than before." “These guidelines will minimise the cost and the time associated with the settlement of indebted businesses, and therefore, increase the recovery rates for creditors,” said ABJ Chairman Musa Shehadeh.

In Jordan, settling a bankruptcy case through the court system can take up to three years. The guidelines are expected to shorten the settlement time to less than one year.“An efficient insolvency framework is vital to fostering a strong business environment and driving economic growth,” says Ahmed Attiga, IFC country manager in Jordan. The project is supported by the State Secretariat for Economic Affairs, Switzerland.