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the financial system conducive to sustainable and equitable economic growth. effective insolvency regimes, by saving struggling firms when possible, or by reallocating assets of failing firms more productively, contribute to the smooth functioning of the financial system. they help minimize market disruptions. banks and investors are also more willing to lend when they know they can recover at least some of their investment when businesses bis central bankers ’ speeches fail. entrepreneurs, particularly those involved in small and medium scale enterprises, will be more willing to enter the market when they do not have to put their entire personal resources at risk. effective insolvency regimes enable transacting parties to take calculated risks in their investment decisions. i am sure you will agree with me when i say that such an empowerment to take calculated risks is what fuels innovation. in turn, innovation is that which is at the heart of economic growth. the current philippine growth trajectory is on an uptrend. to sustain this, we need more investments, especially from real money funds from abroad that are accompanied by new technology for innovation. while it helps that the country is now rated two notches into investment grade territory, we should be mindful this alone won ’ t bring in investors. good growth prospects and higher credit ratings are undoubtedly important contributors to improving the investment environment. but they may not be enough to entice the full range of investors to come in, build businesses and create jobs for filipinos. we should always recognize that investment decisions are highly influenced by investors ’ confidence in our domestic legal system, the quality of our laws governing private and property sectors and how effective our laws are upheld and enforced. investors look for consistency and predictability in their commercial affairs. they would want to maximize and preserve the value of their assets or ensure that their claims are upheld, prioritized or equally treated if they become creditors of insolvent debtors. it is their confidence in our legal system that will encourage them to make use of court processes should rehabilitation and insolvency issues confront them. the fria provides us with a menu of remedies for distressed debtors and new approaches to rehabilitation and insolvency. and because it expressly adopts the uncitral model law on cross - border insolvency and accordingly, fria gives foreign creditors in liquidations and rehabilitation proceedings direct access to philippine courts. thus, opportunities for cooperation between domestic and foreign courts and domestic and foreign insolvency administrators