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Efficient insolvency legislation is crucial for economic stability and investor confidence helping to ensure that resources are reallocated efficiently, businesses can recover or exit the market smoothly, and creditors are treated fairly. This blog presents lessons from Romania, emphasizing the need for and methods to achieve streamlined insolvency processes to prevent financial losses and promote economic growth—insights that are applicable globally.
Romania’s insolvency legislation often prolongs business liquidations, causing losses for creditors, tying up capital, and reducing investor confidence. A recent Subnational Business…