The 11th meeting of the IOTA Debt Management Area Group hosted by the Ministry of Finance of Poland took place in Cracow on 4-6 October 2017. 32 participants from member countries shared knowledge and experience about practical aspects of coordination and cooperation in cross-border insolvency proceedings. A new IOTA project aiming to create a Knowledge Database of international (cross-border) insolvency proceedings was discussed, including project members and timetable. Conclusions and dissemination of key performance indicators of ongoing IOTA project on Measuring Debt Management Performance, sponsored by Federal Finance Service of Belgium were also on the agenda of the meeting.
Practical examples of coordination and cooperation in cross-border insolvency proceedings were presented by Austria, Belgium, Bulgaria, Estonia, Portugal, Russia, Sweden and Switzerland. Complexities that arise for the efficient and effective operation of cross-border insolvency proceedings, specifically in cases involving bankruptcy/liquidation, reorganization and debt restructuring/debt relief in another jurisdiction, were put in the focus of presentations.
Delegates continued their discussions in group sessions examining the cross-border insolvency process taking into consideration commonalities and disparities/differences among participating countries with regard to its primary steps: lodging, verification and admission of claims, distribution of proceeds, closure of insolvency proceedings. Furthermore, members of the Area Group identified the existing information gaps and problematic areas hindering the effective initiation of a cross-border insolvency proceeding in another jurisdiction. Participants looked for the possibilities to utilise the existent information resources (national and international) as a way to achieve a better and faster cross-border insolvency interaction.
This event also paved the way for the new IOTA project aiming to create a Knowledge Database of international (cross-border) insolvency proceedings to facilitate decision-making process in tax administration concerning debt collection. The IOTA Secretariat presented and explained objectives, expected outcomes and activities foreseen under the new project. Area Group members shared their needs and expectations from Knowledge Database and agreed on potential cooperation between participating IOTA Area Group members throughout the project.
The 11th Area Group meeting was also devoted to summarise the conclusions of the IOTA project on Measuring Debt Management Performance, sponsored by Federal Finance Service of Belgium, and to consider the ways of disseminating key performance indicators captured by the Project among IOTA member tax administrations.
The IOTA Secretariat made a presentation highlighting the key activities of the debt management area outlined in the IOTA work programme for 2018. In particular, it was noted that in the forthcoming years the work of the Debt Management Area Group will focus on: i) enhancing international (cross-border) bankruptcy and insolvency proceedings; ii) examining the usability of data available from the automatic exchange of information to increase efficiency in issuing electronic reminders and online notifications; iii) applying the nudging techniques in cross-border/mutual assistance environment with a view to improve communication of reminder messages and increase compliance with debt payment obligations, and iv) promoting the use of advanced analytics in debt collection and recovery, in particular for segmentation of debtors and for risk assessment of non-payment and accumulation of debts.
Further information about the meeting, including all presentations, is available here.