TERMS OF REFERENCE

for STCs

In charge of the drafting the legislation on bankruptcy, drafting sub-legal acts and capacity building

Position: Short Term Consultant

Project: Western Balkans Debt Resolution and Business Exit Project

Location: Kosovo

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A. Project Background and Objectives

IFC’s Debt Resolution and Business Exit Project (“the Project”) aims to mitigate the sustained negative effects of the global financial crisis in the region by improving the insolvency systems in the Western Balkans (Albania, BiH, Kosovo, Macedonia and Serbia) over a 3-year period of implementation. The expected result of the full-scale implementation of the Project is to make countries' debt resolution systems more efficient by improving the insolvency framework and practices, which will lead to a strengthened avenue for NPL resolution and increase returns to creditors and protect economically viable companies.

The project works on the following objectives:

• Improve and develop countries’ legal and regulatory framework
• Raise the capacity of key players in the insolvency process
• Promote the use of insolvency mechanism

In Kosovo, the team has performed a detailed assessment of the legal and institutional framework of insolvency in Kosovo, back in 2018, that included an in-depth review of the various laws and regulations governing insolvency practice. The assessment was conducted with the objective to develop an Action Plan for the Project in cooperation with the Government of Kosovo to engage in a holistic insolvency reform implementation in Kosovo. The results of the assessment revealed that a comprehensive reform of the legal framework is needed in order to improve access to finance by Kosovo businesses and consumers.

The effectiveness of commercial insolvency and debt recovery regimes impacts the investment climate and economic growth. Effective legal and regulatory frameworks reduce credit risk, as well as incentivize creditors to lend more and at lower interest rates. The enactment of the Law on Bankruptcy in 2016 extended the scope of application of insolvency proceedings and moved Kosovo from a country with no legal framework for insolvency proceedings to a country with well-defined liquidation proceedings to responsibly end a business or reorganization proceedings to restore a business. However, the nascent Law did not find the business ecosystem prepared to use the law as a tool for saving company assets, creditors and the economy at-large.

Despite some improvements in the insolvency regime due to the new Law on Bankruptcy, key shortcomings of this law have maintained the low level of trust and reliance of businesses in the insolvency system.

The Project team has drafted the new Law on Bankruptcy that is in the process of the approval. The work should continue in drafting the sub-legal acts for the new Law and trainings and awareness raising for all the stakeholders in the process.

B. SCOPE OF WORK

The purpose of this assignment is to provide operational support and technical advice with regards to the work on the legislation update of the bankruptcy procedure.

In general, at the request of the TTL, the Consultant shall work on the drafting the laws and regulations with regards to the bankruptcy participate in roundtable discussion with the relevant parties and after the approval of the new Law, as follows:

• Work on the drafting of the sublegal acts related to the new Law on Bankruptcy - five (5) sublegal act identified to be drafted;
• Provide recommendations on improvement of the laws for debt resolution, including detailed guidelines or suggested actions;
• Provide recommendations on the laws related to bankruptcy through analyzing both Kosovo and other developed countries legislation;
• Organize roundtable discussions with the diverse groups, including Ministry of Justice, enforcement officers, representatives of the Kosovo Bank Association, judges, licensed and active administrators, Kosovo Chamber of Commerce etc.;
• Conduct informal meetings and consultations with experts, professors of bankruptcy and lawyers;
• Conduct institutional meetings such as meetings with representatives of various ministries, including the Ministry of Justice, the Ministry of Finance, the Ministry of Industry, Entrepreneurship and Trade, as well as other institutions, including the Kosovo Commercial Court, Kosovo Registration Agency and Kosovo Tax Administration, etc;
• Review the existing documentation in terms of issues and obstacles to efficient debt resolution in Kosovo;
• Participate in the working group meetings and parliamentary commission meetings for the finalization of the Law;
• Organize and participate in roundtable discussion with regards to the sub-legal acts on bankruptcy.

Performance of above-mentioned tasks will be divided into two stages:

• Finalization of the draft Law on Bankruptcy and the identification of the challenging and problematic areas of the Law.
• Development of the sub-legal acts, together with other team members, in respect of the legal and institutional framework for debt resolution.

C. LEVEL OF EFFORT/DELIVERABLES

The completion of the tasks included in this ToR will require up to 25 days of the STC’s time through the end of March 2024.

The main deliverables of the Consultant would include the following:

The finalization of the new Law on Bankruptcy - by 28 February 2024

1. Finalization of the sub-legal acts in respect of the legal and institutional framework for debt resolution - by 10 March 2024
2. Organizing at least two roundtable discussions/workshops with the relevant stakeholders – by 10 March 2024
3. Any additional similar tasks as requested and approved by TTL.

The Consultants will be reporting to the Western Balkans Debt Resolution and Business Exit Regional Lead and regularly communicating with the Project Coordinator in charge of implantation in Kosovo. All documents should be drafted both in English and Albanian languages and delivered in electronic form as well as one printed copy each. Team Task Managers for this project will be Mr. Igor Matijevic (imatijevic@ifc.org) and Syzana Dautaj (sdautaj@ifc.org ). All deliverables shall be submitted to TTL in electronic form.

D. QUALIFICATIONS REQUIRED

• Degree in law, finance, economics or business administration and at least 15 years of experience in the relevant field.
• Strong knowledge of Kosovo legislative framework, including laws relevant to corporations and small businesses.
• Strong knowledge and understanding of insolvency regulations and creditor rights systems, including but not limited to liquidation, reorganization and debt restructuring.
• Knowledge in the bankruptcy proceedings and bankruptcy fraud and criminal offenses committed during bankruptcy proceedings.
• Familiar with insolvency legislation in other countries to share best practices.
• Experience in conducting reviews/analyses of legislation and regulations.
• Hands-on experience in legislation writing techniques and legislation drafting especially related to the economic, financial and commercial field.
• Experience in consultations with the public sector, holding workshops and effectively present recommendations to the relevant institutions.
• Excellent spoken and written English language skills.
• Computer literacy is a must.

E. APPLICATION PROCESS

• The deadline for submitting your application is close of business on February 5, 2024. All interested candidates with relevant experience should submit their CV and Cover Letter, at the address: sdautaj@ifc.org