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




We joined AmCham as a community of shared values to expand our access to global competencies and to foster the quality of the health ecosystem.

Agrita Kiopa, Vice Rector for Science, Riga Stradins University

Membership is an attestation that we belong to the modern Latvian business community.

Dace Silava-Tomsone, Managing Partner, COBALT