IDEAS home Printed from https://ideas.repec.org/a/bla/etrans/v5y1997i1p25-44.html
   My bibliography  Save this article

Bank‐led restructuring in Poland (II): bankruptcy and its alternatives

Author

Listed:
  • Cheryl W. Gray
  • Arnold Holle

Abstract

Poland's 1993 Enterprise and Bank Restructuring Programme (EBRP) provided for the resolution of problem loans through bank‐led or court‐led workouts, liquidation, or loan sales. This paper examines the workings of three traditional exit processes ‐ court‐led conciliation, bankruptcy, and state enterprise liquidation. Neither bankruptcy nor court conciliation as currently designed gives creditors in Poland enough control over firsm in financial distress. Suggested improvements in design need to be complemented by strong economic policies that give banks and other creditors powerful incentives to use these debt collection mechanisms. The most problematic of the three exit routes is state enterprise liquidation, and although on paper designed for solvent firms, it is often used to get around bankruptcy and keep debtor management in control of assets for as long as possible. Now that the special bank conciliation process has expired as an option, Poland should shift its energies to improving traditional, broadly applicable exit and workout processes.

Suggested Citation

  • Cheryl W. Gray & Arnold Holle, 1997. "Bank‐led restructuring in Poland (II): bankruptcy and its alternatives," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 5(1), pages 25-44, May.
    • Handle: RePEc:bla:etrans:v:5:y:1997:i:1:p:25-44
    DOI: 10.1111/j.1468-0351.1997.tb00002.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0351.1997.tb00002.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-0351.1997.tb00002.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gray, Cheryl W. & Holle, Arnold, 1996. "Bank-led restructuring in Poland : bankruptcy and its alternatives," Policy Research Working Paper Series 1651, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bonin, John P. & Huang, Yiping, 2001. "Dealing with the bad loans of the Chinese banks," Journal of Asian Economics, Elsevier, vol. 12(2), pages 197-214.
    2. Zhu, Xiaoquan & Peng, Hongfeng & Zhang, Zijian, 2020. "The nexus of judicial efficiency, social burden and default risk: Cross-country evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 68(C).
    3. John P. Bonin & Bozena Leven, 2000. "Can Banks Promote Enterprise Restructuring?: Evidence From a Polish Bank's Experience," William Davidson Institute Working Papers Series 294, William Davidson Institute at the University of Michigan.
    4. Ulrich Thiessen, 2005. "Banking crises, regulation, and growth: the case of Russia," Applied Economics, Taylor & Francis Journals, vol. 37(19), pages 2191-2203.
    5. Alan Bevan & Saul Estrin & Mark E. Schaffer, 1999. "Determinants of Enterprise Performance during Transition," CERT Discussion Papers 9903, Centre for Economic Reform and Transformation, Heriot Watt University.
    6. John Bonin & Bozena Leven, 2001. "Can State-owned Banks Promote Enterprise Restructuring? Evidence from One Polish Bank's Experience," Post-Communist Economies, Taylor & Francis Journals, vol. 13(4), pages 431-443.
    7. Ulrich Thießen, 2004. "Financial System Development, Regulation and Economic Growth: Evidence from Russia," Discussion Papers of DIW Berlin 400, DIW Berlin, German Institute for Economic Research.
    8. Nandini Gupta & John C. Ham & Jan Svejnar, 2000. "Priorities and Sequencing in Privatization: Theory and Evidence from the Czech Republic," William Davidson Institute Working Papers Series 323, William Davidson Institute at the University of Michigan.
    9. Djankov, Simeon, 1999. "The Enterprise Isolation Program in Romania," Journal of Comparative Economics, Elsevier, vol. 27(2), pages 281-293, June.
    10. Djankov, Simeon, 1998. "Enterprise isolation programs in transition economies : evidence from Romania," Policy Research Working Paper Series 1952, The World Bank.
    11. Clas Wihlborg, 2002. "Insolvency and Debt Recovery Procedures in Economic Development: An Overview of African Law," WIDER Working Paper Series DP2002-27, World Institute for Development Economic Research (UNU-WIDER).
    12. Steinherr, Alfred & Tukel, Ali & Ucer, Murat, 2004. "The Turkish Banking Sector - Challenges And Outlook In Transition To Eu Membership," Economic and Financial Reports 2004/2, European Investment Bank, Economics Department.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gray, Cheryl W. & Holle, Arnold, 1996. "Bank-led restructuring in Poland : an empirical look at the bank conciliation process," Policy Research Working Paper Series 1650, The World Bank.
    2. Buch, Claudia M. & Heinrich, Ralph P., 1997. "The end of the Czech miracle? Currency crisis reveals need for institutional reforms," Kiel Discussion Papers 301, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:etrans:v:5:y:1997:i:1:p:25-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/ebrdduk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.