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

in cross - border insolvencies and restructurings are available. what more needs to be done? over the past 15 minutes or so, i went through a laundry list of the benefits of an effective insolvency regime. clearly, we all appreciate that the fria is our take off point for reaping these benefits. however, in the 2013 forum on asian insolvency reform that the philippine government hosted through the bangko sentral ng pilipinas, one session exhaustively deliberated on the proposition that, in the implementation of insolvency regimes, fixing the insolvency statute is not sufficient to create a well - functioning insolvency regime. i cannot agree more. recent studies have shown that the critical success factor in effective insolvency regimes globally is : the continuation of reforms after laws are enacted. the failure of insolvency systems in countries that have already modernized their laws is due to inadequate implementation. the implementation of the law is as important as the law itself. our distinguished audience knows all too well that the successful implementation of the fria can only come about through a clear understanding and consistent application of the fria and fr rules by our judges and insolvency administrators. given the special and technical competence required in liquidation and rehabilitation processes, suitable and sufficient capacity building is a necessary component. thus, we cannot stress enough the benefit of specialized training for members of our judiciary, industry practitioners, and other stakeholders. this should include basic business and accounting training, especially for those who have neither. with the growing internationalization of finance and other businesses, we can anticipate the application of insolvency laws and rules on international corporations doing business in the country. our courts are therefore continually called upon to be more dynamic and responsive to such economic and financial developments. we are hopeful and confident of the response bis central bankers ’ speeches of our judiciary to this call, so as to give spirit to the more expeditious rehabilitation proceedings mandated under the fria and fr. this will help in ensuring that no delay will derail implementation of rehabilitation plans. conclusion ladies and gentlemen, at the core of it, the challenge to us is to help sustain the business confidence in our country and achieve financial stability. this we can do by actively playing our role in creating an environment with an adequate and functioning legal framework, where laws and rules are clear and well - defined, thereby enabling a consistent application by the members of our judiciary