statement of principles for a global approach to multi-creditor workouts

The World BankWashington D.C. 20433U.S.AKO-YUNG TUNGVice President & General CounselMr. Neil CooperPresidentINSOL International2-3 Philpot LaneLondon EC3M 8AQEnglandOctober 2, 2000Dear Mr Cooper:ILG Principles for Multi-Bank WorkoutsOn behalf of the Bank, I would like to thank you for the opportunity toreview the recently completed Principles for Multi-Bank Workouts developedunder the auspices of INSOL International by the INSOL Lenders Group.The World Bank has been addressing the problems of corporatefinancial distress on a systemic level throughout the transition experience inCentral and Eastern Europe and in the more recent financial crisis context inemerging markets. The Bank places paramount importance on these issues asbeing fundamentally important to sustain and promote effective markets andgrowth in developing countries and to maintain stability within financialsystems. In this regard, the Bank has been working in collaboration withINSOL, the International Bar Association and international financialinstitutions to develop principles and guidelines for effective insolvencysystems in developing countries. The INSOL Principles are an importantcomplement to that broader initiative and other global efforts in this field.INSOL is to be commended for this timely contribution to theevolving debate regarding the design and operation of insolvency systems andfor its long standing commitment to the global enhancement of awareness andbest practice within the international professional community.Sincerely,Ko-Yung Tung