Globalization or Sovereignty, Cooperation or Conflict: Adoption of the UNCITRAL Model Law on Cross-Border Insolvency in Kazakhstan

The cross-border insolvency of BTA Bank prompted by the Global financial crisis of 2007-2009, extensive international borrowing, and fraudulent actions of the former bank's managers disclosed the deficiency of the national legislation of Kazakhstan to deal with cross-border insolvency cases and thus raised an alarm on the necessity of legal reform. The legal reform in Kazakhstan should begin from the adoption of the UNCITRAL Model Law on Cross-Border Insolvency, the international instrument that is aimed to harmonize cross-border insolvency approach worldwide and is recommended for enactment by all authoritative international institutions in this field. The enactment of the UNCITRAL Model Law on Cross-Border Insolvency would allow Kazakhstan to continue being the country of the top investment attractiveness because investors would be offered not only a beneficial entry but also a favorable exit. As with every legal reform, the enactment of the UNCITRAL Model Law on Cross-Border Insolvency requires substantial efforts on behalf of the state and its government officials. However, for present purposes, the exercise is one of an academic kind to prove that the UNCITRAL Model Law on Cross-Border Insolvency is the best instrument in handling cross-border insolvencies and propose its enactment in Kazakhstan keeping in mind historical, social and legal factors.