Virtual Panel Series: UNCITRAL Texts and COVID-19 Response and Recovery- Day 3: Assisting Economic Recovery – Targeting MSME

Micro, small and medium-sized enterprises (MSMEs) represent the majority of businesses in most countries and account for a large portion of overall employment. However, MSMEs worldwide experience similar obstacles during their life cycle, inclu- ding bearing a disproportionate burden of regulatory measures, having limited access to capital or banking services, and having limited access to efficient insolvency proceedings. Since 2013, UNCITRAL has been working to reduce the legal obstacles faced by MSMEs in a number of key areas.

Lockdowns and other measures to mitigate the COVID-19 pandemic have reduced demand for products and services, as well as disrupted supply chains, particularly in sectors where MSMEs operate. Despite temporary relief measures implemented by States, insolvencies of micro and small enterprises are expected to rise dramatically. Moreover, the crisis has severely ham- pered the capacity of MSMEs to generate the revenue necessary for their continued operation, making them even more dependent on credit from financial institutions and other financiers. This session will explore the importance of efficient, effective and simplified insolvency proceedings for resolving financial distress of micro and small enterprises in the current global context, as well as consider possible policy and legislative measures to enhance MSME access to credit, including through reforms based on UNCITRAL texts on secured transactions.

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