IFC, a member of the World Bank Group, will support the Insolvency and Bankruptcy Board of India (IBBI) in strengthening the implementation of India's new insolvency and bankruptcy framework, the Insolvency and Bankruptcy Code (IBC), 2016.
The funding focuses on four key areas including capacity Building, assisting the IBBI in the development of a comprehensive National Insolvency Professionals Programme among others.
The World Bank's investment arm said the project includes $6,40,613 (around Rs 43.4 million) which is aimed at supporting the Insolvency and Bankruptcy Board of India (IBBI) in strengthening the implementation of the Insolvency and Bankruptcy Code (IBC), 2016.
This project focuses on four key areas including building the capacity of insolvency professionals in the country and of IBBI's own officers, through dedicated and customised training programs that will be delivered based on the WBG's global experience in insolvency resolution and stressed asset management
Assisting the IBBI in the development of a comprehensive National Insolvency Professionals Program, which will incorporate international best practices, will lead to the development of a competent and accredited cadre of insolvency professionals.
The project will also support in working with the IBBI in developing the functional and technical specifications for an IT system that will support them in fulfilling their mandate as the regulator for insolvency and bankruptcy in the country.
IFC also said that it is assisting the IBBI in development of technology standards and identification of information and data needs for Information Utilities and provision of inputs on draft regulations for them.
"This project is expected to contribute to the strengthening of India's new insolvency framework. This is expected to lead to an increase in the number of stressed asset cases coming up for resolution (or for liquidation) and the capital stuck in such cases being reintroduced into the economy for productive use. The end result is expected to be an increase in financing available to micro, small and medium enterprises in the country," said the World Bank's investment arm.