legal reform in transition countries - the ebrd approach presentation to world bank
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Legal reform in transition countries - the EBRD approach Presentation to World Bank. 25 February 2008 Michel Nussbaumer Frederique Dahan. Presentation plan. What is EBRD? The EBRD Legal Transition Programme Outlook. What is EBRD?. What is the EBRD?. Founded in 1991 - PowerPoint PPT PresentationTRANSCRIPT
Legal reform in transition countries -Legal reform in transition countries -the EBRD approachthe EBRD approach
Presentation to World Bank
25 February 200825 February 2008
Michel NussbaumerFrederique Dahan
Presentation planPresentation plan
I. What is EBRD?
II. The EBRD Legal Transition Programme
III. Outlook
I. What is EBRD?
What is the EBRD? What is the EBRD?
Founded in 1991Founded in 1991 Financial institution with €20 Financial institution with €20
billion capitalbillion capital Operates in 29 countries in Operates in 29 countries in
Central and Eastern Europe, Central and Eastern Europe, including the former Soviet including the former Soviet UnionUnion
Multinational shareholding: Multinational shareholding: 60 countries, EIB and EU 60 countries, EIB and EU
More than 1000 regular staff More than 1000 regular staff from 52 countries, More than from 52 countries, More than 250 locally hired staff in 33 250 locally hired staff in 33 resident officesresident offices
Largest investor in the regionLargest investor in the region
+ Mongolia(July 2006)
What are the EBRD’s objectives?What are the EBRD’s objectives?
To promote transition to market economies by investing mainly in the private sector
To mobilise significant foreign direct investment
To support privatisation, restructuring and better municipal services to improve people’s lives
To encourage environmentally sound and sustainable development
II. EBRD Legal Transition Programme
EBRD Office of the General CounselEBRD Office of the General Counsel
General Counsel
Assistant General Counsel
Deputy General Counsel
LEGAL TRANSITION TEAM 7 LAWYERS
FOUR
TEAMS
FOUR
TEAMS
Deputy General Counsel
THREE
TEAMS
EBRD Legal Transition Programme focuses on EBRD Legal Transition Programme focuses on areas relevant to investorsareas relevant to investors
Securedtransactions
Infrastructure regulation
Concessions
Insolvency
Corporate governance
Investment
Securities markets
Judicialcapacity
In-house expertiseIn-house expertise
Gian Piero CignaCorporate Governance &Capital Markets Specialist
Alexei ZverevConcessions Specialist
Paul MoffattInfrastructure RegulationSpecialist
Frederique DahanSecured TransactionsSpecialist
? INSOLVENCY COUNSEL TO BE ADVISED
The virtuous circle of legal reformThe virtuous circle of legal reform
STANDARD STANDARD SETTINGSETTING
ASSESSMENTASSESSMENTWORKWORK
OUTREACHOUTREACHCOUNTRY COUNTRY PROJECTSPROJECTS
Assessing compliance with international Assessing compliance with international standardsstandards: EBRD Assessment of insolvency laws 2007: EBRD Assessment of insolvency laws 2007
Very high compliance
High compliance Medium compliance
Low compliance Very low compliance
Albania
Bosnia and Herzegovina
Bulgaria
Croatia
Moldova
Montenegro
Romania
Serbia
Armenia
Belarus
Czech Republic
Estonia
Hungary
Kazakhstan
Kyrgyz Republic
FYR Macedonia
Poland
Russian Republic
Slovak Republic
Azerbaijan
Georgia
Latvia
Mongolia
Slovenia
Lithuania
Tajikistan
Turkmenistan
Ukraine
Uzbekistan
LTP assessments pinpoint strengths LTP assessments pinpoint strengths and weaknesses in laws:and weaknesses in laws:the example of insolvency laws in Lithuania and Romaniathe example of insolvency laws in Lithuania and Romania
Source: EBRD Assessment of Concession Laws, 2007100 represents full approximation with international standards
0
20
40
60
80
100Commencment
Assets of the Estate
CreditorsReorganisation proceedings
Terminal proceedings
LithuaniaRomaniaInternational standards
Measuring the effectiveness of concessions legal Measuring the effectiveness of concessions legal frameworks – 2006 Legal Indicator Surveyframeworks – 2006 Legal Indicator Survey
Effectiveness of concessions legal framework
0
10
20
30
40
50
60
70
80
90
100
*Uzb
ekist
an
*Tajikis
tan
*Bela
rus
*Kyrg
yz Rep
.
*Aze
rbaijan
Moldova
Monteneg
ro
Russia
*Mongolia
*Arm
enia
Poland
Ukraine
Bosnia
and Herz
.
*Esto
nia
*Alban
iaLatv
ia
Georgia
Serbia
*Slova
k Rep
.
FYR Mac
edonia
Croatia
Kazak
hstan
Hungary
Lithuan
ia
Romania
*Slove
nia
Bulgaria
*Cze
ch R
ep.
Per c
ent
Existence of Concessions Selection Process Project Agreement Termination
* Countries without a concession as defined at the time of assessment
Veryefficient
Notefficient
Dissemination of assessment work – Dissemination of assessment work – Law in Law in transitiontransition
Available in English and in Russian
LiT 07.jpg (124 KB)
LiT 07.jpg (124 KB)
Dissemination of assessment work – Legal Dissemination of assessment work – Legal Transition Programme web pagesTransition Programme web pages
www.ebrd.com/law
Case Study: Slovak pledge law reform Case Study: Slovak pledge law reform (2000-2006)(2000-2006)
A wide-ranking project with three phases: Consensus-building: objective is to create situation
favourable to introduction of effective security laws
Drafting: most visible but only a small part of the process
Implementing: help identifying means for comprehensive and sustainable implementation of reform
1. Consensus building1. Consensus building
1999: favourable political climate calling for reforms (support of government and private sector)
EU membership – transposition of acquis (BUT secured transactions not concerned)
World Bank conditionality (Financial Sector Adjustment Loan)
Separation from the complex Civil Code reform project
Country happy to learn from others’ experience
2. 2. DraftingDrafting
Consistent with existing regime applicable to movable and immovable property
Readiness to embrace concepts unfamiliar to Civil Law tradition, e.g. specificity
Ministry of Finance ready to waive its priority privilege Fully flexible mode of enforcement
3. 3. ImplementingImplementing
Collateral register with no burden for the State budget -> Chamber of Notaries
Development of supporting materials (practical guide, FAQ, legal commentary)
Dissemination and training (esp. judiciary) Review of functioning of register against initial
objectives and specifications
Current technical assistance projects Current technical assistance projects (selection):(selection):
Mongolia Telecoms– Providing assistance to the Mongolian government in both the
privatisation and regulatory development areas CIS Model Company Law
– Helping the CIS Inter-parliamentary Assembly prepare a model law for joint-stock companies
Kyrgyz Judicial Capacity Building– Implementing action plan to increase judicial capacity in the
commercial law sector Serbia Insolvency
– Assisting the government of Serbia to improve capacity of its Bankruptcy Supervisory Agency
Coordination with other aid providersCoordination with other aid providers
Mainly on the ground:– Via counterpart
– EBRD resident offices
– Local working groups or investor councils
New tools: IDLO database
III. Outlook
The futureThe future
Gradual shift of technical assistance to countries further south and east (Western Balkans, Early Transition Countries)
Finding niches where EBRD can be additional (e.g., insolvency administrators)
Controlled growth of programme to respond to current demands
OutlookOutlook
Legal reform in transition countries -Legal reform in transition countries -the EBRD approachthe EBRD approach
Presentation to World Bank
25 February 200825 February 2008
Michel NussbaumerFrederique Dahan