News

Insolvency Law doesn't meet its goal, say 70% respondents

Oct 16, 2015

In 2013 AmCham Latvia and its partners conducted a survey about the insolvency system in Latvia. A similar survey was conducted in preparation for Outlook on October 15, 2015, with combined responses of the members of the American, Latvian, Norwegian Chambers of Commerce and Foreign Investors Council in Latvia.

187 respondents participated in an anonymous survey conducted by organizers this year (138 participated in 2013).

Main conclusions are as follows:

  • 71% of respondents have encountered the insolvency or bankruptcy protection proceedings in their business in the survey of 2015 (77% in 2013);
  • 83% respondents 2013 think the state would be unable to effectively protect their legitimate interests in the case of insolvency (equal number both in 2015 and 2013);
  • 84% believe that insolvency and bankruptcy protection proceedings are not fully transparent and fair in 2015 (76% in 2013);
  • Low trust in all institutions involved in governance and supervision of the insolvency process was indicated in both surveys in 2015 and 2013 (out of 100).

Two additional questions were included in this year's survey for AmCham, NCCL and FICIL members:

  • 70% of respondents think that the Insolvency Law doesn't meet its ultimate goal to promote the fulfillment of the obligations of a debtor in financial difficulties and to renew its solvency when possible.
  • 85% believe that interpretation and application of the Insolvency Law is not predictable and consistent.

Respondents suggested several improvements of the insolvency system such as prosecution of corrupt administrators, introducing sharp control function, full replacement of all insolvency administrators, and reforming the whole Insolvency system. Many respondents admitted the legislation has been amended, but overall improvement has not been achieved. Enforcement and application of law remains among the main challenges.

The presentation with the results are available here.
< Back to News

Categories

AVIS Budget Group Latvia

Feedback

Roche Latvija is pleased to be part of the AmCham community.

Rauls Vēliņš, General Manager, Roche Latvija

AmCham reflects our values and enables us to meet similarly-minded people.

Daiga Auzina-Melalksne, Chair of NASDAQ Riga