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Reforming the Legal and Institutional Framework for the Enforcement of Civil and Commercial Claims in Portugal

Author

Listed:
  • Sebastiaan Pompe
  • Mr. Wolfgang Bergthaler
Abstract
This paper discusses the recent major reforms in the area of civil and commercial claims enforcement undertaken by the Portuguese authorities in the context of the IMF/EU-supported adjustment program. The economic literature has long recognized that slow claims enforcement affects economic growth, foreign direct investment, credit and labor markets, and firm size. The Portuguese authorities together with IMF/EU staff deployed a novel approach that has focused on incentives tackling weaknesses in the enforcement process with the aim of increasing the efficiency and effectiveness of claims enforcement and resolving court backlogs. The paper finds impressive quantifiable changes affecting, in particular, court backlog reduction, court processing speed, and private debt recovery. The economic literature suggests that this will impact positively on the payment culture and overall growth, even if such impact cannot be determined at this stage.

Suggested Citation

  • Sebastiaan Pompe & Mr. Wolfgang Bergthaler, 2015. "Reforming the Legal and Institutional Framework for the Enforcement of Civil and Commercial Claims in Portugal," IMF Working Papers 2015/279, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2015/279
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    References listed on IDEAS

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    8. Jappelli, Tullio & Pagano, Marco & Bianco, Magda, 2005. "Courts and Banks: Effects of Judicial Enforcement on Credit Markets," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(2), pages 223-244, April.
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    Cited by:

    1. Lara Wemans & Manuel Coutinho Pereira, . "Productivity in civil justice in Portugal: A crucial issue in a congested system," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    2. International Monetary Fund, 2016. "Portugal: Ex Post Evaluation of Exceptional Access Under the 2011 Extended Arrangement-Press Release; Staff Report; and Authorities Views," IMF Staff Country Reports 2016/302, International Monetary Fund.
    3. Lara Wemans & Manuel Coutinho Pereira, 2017. "Productivity in civil justice in Portugal: A crucial issue in a congested system," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.

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