In view of the current global crises, DEA is making available the experience of some of its Associates who have been responsible for handling similar situations in the past on behalf of international financial institutions.
Crisis Management and Financial Recovery
This practice area serves donors and assists Host Governments to cope with the present global financial crisis, alleviate the economic impact and lay the ground work for a rapid recovery. It includes two main areas of practice:
Our Insolvency and debt advisory practice is especially relevant in the present crisis situation internationally. We can advise Governments and Government organizations in emerging markets on strategic redesign of their insolvency regimes** to cope with the present crisis. In countries where the financial sector and intermediation in particular is underdeveloped or weak, we focus our advice on preserving the going concern. On the other hand in countries where the financial sector has begun to function, our focus shifts on preserving continued health of the financial sector and access to finance. We offer assistance in institutionalizing out of court resolution processes ( e.g., the London Club approach), especially in countries where the legal framework for insolvency and the judicial processes are underdeveloped.
For a Sovereign in financial distress and wishing to avoid a default, we can help. We engineer debt relief, help you deal with vulture funds ( we know the game from the inside), we assure the utmost discretion and help you issue and place paper that is sustainable and within the fiscal and IMF headroom. We can also help with quick divestiture of state owned assets to generate revenue with minimum social implications. If you are in a hurry to increase exports and create jobs, we have the best people and ideas and the most experience to help you achive these goals.
Investment and Export Promotion
Our Associates have been associated with some of the greater success stories in mobilizing Foreign Direct Investment (FDI) and developing export markets.
FDI Promotion: We can help countries reform their legal and regulatory regimes for attracting FDI, set up and run investment promotion agencies, conduct investors conferences and matchmaking programs, and to best keep the investors in the country once they are in. This last issue is very important since experience (and the data) around the world shows that about 80% of FDI inflows comes from follow on investments.
Export Promotion: We can help countries reform their legal, regulatory and tariff regimes for increasing their export volumes. One key factor constraining exports is the time it takes for an export order to be put on board the shipping vessel. The World Bank Doing Business data shows that ceteris paribas, every one day saved in the time to export increases exports by 1%. We can help countries and firms (there are in fact things that a firm can do) to reduce the time it takes to export. We also can help Countries to set up and run promotion agencies, conduct investors conferences and matchmaking programs.