2009 - present
Supported with funds from
the Swiss Confederation, the Austrian Government, Ministry of Foreign Affairs of Finland, the Netherlands’ Agency for International Business and Cooperation.
Web-site:
www.ifc.org/eca/cr
The program works with banks in Eastern Europe and Central Asia in
improving their risk management capabilities including work outs and
debt collection, as well as helping to find resolutions for distressed
assets. In selected countries, the program engages with local
associations and institutions in legal and regulatory reform work to
create a transparent environment for distressed asset transfers and
sale. The program eventually aims to strengthen the lending capability
of banks especially to small and medium enterprises.
The program was designed to support financial institutions in Europe and
Central Asia (ECA) in their recovery from the global economic crisis.
Its goal is to help develop a market for distressed assets in a move
aimed at stimulating new lending by the financial institutions, thus
supporting long-term sustainable economic development in the region.
The Challenge
The financial crisis has led to a global liquidity shock that has
now evolved into a global economic slowdown. The ECA region has been
especially hard hit by the crisis: reduction of demand for their
exports, asset prices are plummeting, remittances are decreasing,
investments are drying-up, employment is under threat. Enterprises in
all industry sectors and of all sizes are facing difficulties. Many
financial institutions in ECA are facing an increase in non-performing,
unsuccessful loan collections and a depletion of their financial
resources. Market participants and regulators are unsure how to manage
distressed assets resolution.
IFC Approach
- Promote best practice in risk management in the financial sector
- Increase knowledge in bad asset management and improve overall risk management tools
- In close cooperation with government officials, IBRD and
bankers, analyze the legal and regulatory environment and support the
development of effective instruments and regulations to create a working
market to transfer or sell distressed assets.
For more information please contact: Garth Bedford, Project Manager,GBedford@ifc.org
Share & Bookmark
