Project Description
The project develops and promotes efficient out-of-court settlement
mechanisms to help resolve debt-related cases, such as financial,
commercial, and tax disputes, in Bangladesh. The objective is to free up
private capital and government revenue, thereby returning value to the
economy and improving the overall credit environment. Expected outcomes
include: 1) reducing the time and cost for resolving commercial disputes
by 50 percent, through ADR (alternative dispute resolution), as measured
against resolving disputes through the courts; 2) improving nonperforming
loan recovery rates by at least 10 percent; 3) freeing up funds that are
tied up in commercial disputes, as measured by the amount of funds
released through resolved disputes ($150 million); and 4) disposing of
pending tax cases through arbitration, to release locked government
revenue by at least 30 percent, amounting to $350 million.