Insolvency Sector Assessment

Introduction

Insolvency Office Holder Assessment

In 2014 the EBRD completed a detailed assessment of the insolvency office holder (IOH) profession in 27 countries where it works that evaluates the profession’s state of development and performance. The assessment built on a previous initiative of the EBRD in establishing the EBRD Insolvency Office Holder PrinciplesThe aim of the assessment was to identify any shortcomings within the existing statutory framework for IOHs that need to be addressed.

Known variously as administrators, managers, liquidators or trustees, IOHs are central figures in collective insolvency proceedings. Such proceedings often require the total or partial divestment of the debtor’s management and the appointment of an IOH to administer or liquidate the assets of the debtor. The Assessment was first piloted in 2012 in seven countries (Bosnia and Herzegovina, Latvia, Poland, Romania, Russia, Serbia and Tunisia) before being rolled out to the remaining 20 countries (Albania, Belarus, Bulgaria, Croatia, Egypt, Estonia, FYR Macedonia, Georgia, Hungary, Kazakhstan, Kosovo, Kyrgyz Republic, Lithuania, Moldova, Montenegro, Morocco, Slovak Republic, Slovenia, Turkey and Ukraine) in 2013 to 2014.

The EBRD published a full report of the insolvency Office Holder Assessment in 2014

Individual country profiles for all 27 countries covered by the Assessment were published on-line and updated in 2016.

The assessment has highlighted the importance of IOHs in national insolvency systems.  It has also been a useful tool for EBRD technical assistance aimed at strengthening the regulation of IOHs in Croatia, Cyprus and Greece.

Assessment report

 

 

Account Blocking and Enforcement Studies

The EBRD has completed a regional study of account blocking in four Western Balkan countries: Bosnia and Herzegovina, FYR Macedonia, Montenegro and Serbia. Account blocking – part of a system of debt recovery based on bills of exchange that is widespread in the Western Balkans – can have an extremely negative effect on debtors’ ability to pay creditors. Combined with cash sweeping, the practice triggers a race among creditors and denies businesses access to their bank accounts and working capital. This impedes efforts towards out-of-court restructuring and increases the likelihood of a viable firm in temporary financial distress going bankrupt and being liquidated. The study, which was funded by Luxembourg, assessed the impact of the cash sweeping and account blocking powers of bills of exchange in those countries on a corporate debtor’s ability to successfully restructure or reorganise its debts. The study has emphasised the importance of creating viable alternatives, in particular effective account pledge security and a financial collateral regime, that could gradually reduce reliance on bills of exchange as a form of quasi-security and enforcement mechanism.

Account Blocking Studies in Bosnia and Herzegovina, FYR Macedonia, Montenegro and Serbia.

The EBRD has led a study on the enforcement of business loans in Albania, Croatia, Cyprus, Greece and Ukraine. Each of the five jurisdictions selected for this study have high levels of non-performing loans, namely bank loans which have not been repaid or which are unlikely to be repaid in full by the debtor in the future. According to Vienna Initiative 2.0 research, the average corporate and retail NPL figures for 2017 reveal Ukraine to have the highest NPL ratio of these countries at 56.4%, followed by Greece at 47.2%, Cyprus at 43.1%, Albania at 14.8% and Croatia at 12.3%.  National authorities and policymakers (including recently the European Commission) have been considering ways in which the problem of high NPL levels in the banking sector can be managed, including changes to insolvency and enforcement frameworks.  This study is expected to contribute towards identifying main areas for reform to improve national enforcement frameworks.

Read more 

 

 


 

 
 

 

Albania

Legislative framework for insolvency proceedings

The Law No. 8901, dated 23 May 2002 on Bankruptcy (as amended, the LB) is the main legislation governing the insolvency proceedings of businesses (including both legal entities and entrepreneurs).

Legislative framework for insolvency office holders

The main legislative provisions relating to insolvency office holders (IOHs) are found in the LB and are supplemented by other laws, including the Order of the Minister of Justice, No. 26, dated 14 January 2013 on the Detailed Rules for the Supervision and Inspection Procedures of Insolvency Administrators; Decision of the Council of Ministers No. 197, dated 13 April 2007 on the Criteria and Conditions for the Establishment of the Insolvency Administrator’s Compensation and Reimbursement of Expenses; Government Decision No. 125, dated 6 February 2013 on the Approval of the Code of Ethics for the Insolvency Administrators; and the Decision of the Council of Ministers No. 124, dated 6 February 2013 on National Standards of Administration of the Bankruptcy Estate.

Further provisions relating to the Bankruptcy Supervision Agency are found in the Regulation on the definition of specific rules for the internal organisation and operation of the Bankruptcy Supervisory Agency and the Regulation on the definition of specific rules for the procedures and terms of the organisation of the test on licensing of the insolvency administrators.

Profile of Insolvency Framework 
 

 

Belarus

Legislative framework for insolvency proceedings

The Law of the Republic of Belarus of 13 July 2012 No. 415-З on Economic Insolvency (LI) is the main legislation governing the insolvency of legal entities and registered sole proprietors. Procedural rules relating to insolvency are contained in the Economic Procedural Code of the Republic of Belarus of 15 December 1998 No. 219-Z (EPC). Insolvency legislation is not applicable to certain legal entities of a strategic nature.

Legislative framework for insolvency office holders

The main provisions relating to insolvency office holders (IOHs) are found in the LI; however, other laws are relevant, including the Resolution on some matters related to the qualification of persons for the position of IOHs in insolvency (bankruptcy) proceedings; Resolution Governing the Procedure on Fixing the Remuneration of IOHs and the Resolution on the Examination of IOHs.

Profile of legal framework

 
 
 


 

 

Bosnia and Herzegovina

Legislative framework for insolvency proceedings

As a result of the complex democratic and governmental system of Bosnia and Herzegovina (which is divided into two entities, the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS)), insolvency proceedings in respect of legal entities are governed by two main pieces of legislation: (i) the Law on Bankruptcy Proceedings applicable to the FBiH (as amended, the LBP)1 and (ii) the Law on Bankruptcy Proceedings of RS (as amended).

Further provisions applicable in the FBiH are found in the Law on Liquidation Procedure of the FBiH as well as in the Law on Civil Procedures.4 There are slight differences among the rules applicable in the FBiH and in the RS. The pilot assessment has focused primarily on the provisions applicable in FBiH and has excluded Brčko District from its scope.

Legislative framework for insolvency office holders

Provisions relating to insolvency office holders (IOHs) are largely found in the LBP. In the FBiH, a rulebook governs the fees and the amount of compensation for experts and interim bankruptcy trustees. A similar rulebook is not yet applicable to the RS. Furthermore, in both the FBiH and in the RS a rulebook governs the requirements and the procedure of professional exams for prospective IOHs.

Profile of legal framework

 
 

 

Bulgaria

Legislative framework for insolvency proceedings

The Commerce Act, published in the State Gazette No 48 dated 18 June 1991 (as amended, the CA) and the Civil Procedure Code, published in the State Gazette No 59 dated 20 July 2007 (as amended, the CPC) provide the legislative framework for insolvency (bankruptcy) proceedings in Bulgaria.

Legislative framework for insolvency office holders

Provisions on insolvency office holders (IOHs) are found in the CA and are supplemented by Regulation no. 3 dated 27 June 2005 (the Regulation) issued by the Minister of Justice, the Minister of Economy and the Minister of Finance, which sets out certain admission criteria for the profession and continuing training requirements for IOHs

Profile of legal framework.

 


 

 

Croatia

Legislative framework for insolvency proceedings

The Bankruptcy Act (BA) is the main law governing the insolvency of businesses (including individual entrepreneurs) in Croatia. The newly adopted BA now also incorporates the pre-bankruptcy settlement procedure, previously regulated in the Act on Financial Operations and Pre-Bankruptcy Settlement Proceedings (as amended).

Legislative framework for insolvency office holders

In addition to the BA, other legislation regulating the insolvency office holder (IOH) profession includes: the Decision on Establishing the List of Bankruptcy Administrators; the Rulebook on Establishing the List of Bankruptcy Administrators; the Rulebook on the Expert Exam Programme for Bankruptcy Administrators; the Rulebook on Conditions and Method of Random Selection of Bankruptcy Administrators; and the Regulation on the Criteria and Calculation of Payments to the Bankruptcy Administrators.

Profile of legal framework


 

 

Egypt

Legislative framework for insolvency proceedings

Insolvency proceedings in Egypt for businesses (including sole traders) are governed by the Trade Law No. 17 of 1999 (the Trade Law). Additional provisions relating to companies may be found in the Companies Law No. 159 of 1981.

Legislative framework for insolvency office holders

The main provisions relating to insolvency office holders (IOHs) are contained in the Trade Law. Although the Trade Law provides for the adoption of a specific decree governing the IOH profession, as at the date of this publication no such decree had been issued. The Minister of Justice Decree No. 1184 of 1992 (the Ministerial Decree) sets out certain requirements regarding the registration of IOHs with each of the so-called preliminary courts (courts of first instance).

Profile of legal framework

 
 
 


 

 

Estonia

Legislative framework for insolvency proceedings

The Bankruptcy Act of 2003 (as amended) is the main legislation governing the insolvency of businesses (including individual entrepreneurs) in Estonia. A separate procedure exists under the Reorganisation Act of 2008 (as amended) for legal entities which are likely to become insolvent in the future and which require reorganisation. A further act, the Debt Restructuring and Debt Protection Act of 2010 regulates the restructuring of the debts of natural persons.

Legislative framework for insolvency office holders

In addition to the Bankruptcy Act, the Bailiffs Act, the Articles of Association of the Estonian Chamber of Bailiffs and Trustees in Bankruptcy and the Code of Conduct adopted by the Chamber of Bailiffs and Trustees in Bankruptcy govern the insolvency office holder (IOH) profession. The procedure for calculating the remuneration of reorganisation advisers is set out in Regulation 1 of the Ministry of Justice of 9 January 2009 (amended on 1 January 2011).

Profile of legal framework

FYR Macedonia

Legislative framework for insolvency proceedings

The main legislation governing insolvency proceedings of businesses (including individual entrepreneurs) in FYR Macedonia is the Insolvency Act of 2006 (as amended).

Legislative framework for insolvency office holders

The provisions on insolvency office holders (IOHs) are largely found in the Insolvency Act; nevertheless, further rules are also contained in the Rulebook on Remuneration and Compensation of Incurred Expenses of the Insolvency Office Holders and the Manner of Determination of their Value; the Code of Ethics for Bankruptcy Trustees; the Rulebook on Professional Standards for Bankruptcy Proceedings, the Rulebook on the Manner of Selection of a Bankruptcy Trustee under the Electronic Selection System.

Profile of legal framework

 

Georgia

Legislative framework for insolvency proceedings

The main law regulating insolvency proceedings for businesses (including individual entrepreneurs) is the Law of Georgia on Insolvency Proceedings (LIP). Additional provisions with respect to entrepreneurs are found in the Law of Georgia on Entrepreneurs.

Legislative framework for insolvency office holders

Provisions on insolvency office holders (IOHs) are found in the LIP and in the Law of Georgia on Enforcement Proceedings (LE) as well as in other pieces of legislation, including the Decree of the Minister of Justice No. 144 on certain payment and fee provisions relating to IOHs.

Profile of legal framework

 
 
 

 

Hungary

Legislative framework for insolvency proceedings

The Act XLIX of 1991 on Bankruptcy and Liquidation Proceedings (as amended, the BA) is the main legislation governing the insolvency proceedings of legal entities that are insolvent or threatened with insolvency.

Legislative framework for insolvency office holders

The main provisions relating to insolvency office holders (IOHs) are found, inter alia, in the BA, which details the major requirements relating to the profession; however, other laws, including the Act V of 2013 on the Civil Code, Act V of 2006 on the Companies Procedures; the Governmental Decree No. 114/2006 (V. 12) on the list of liquidators; and the Ministerial Decree (IRM) No. 33/2009 (VIII. 26) on the forms of initiating bankruptcy proceedings are also applicable to IOHs.

Profile of legal framework

 

 

Kazakhstan

Legislative framework for insolvency proceedings

The Law of the Republic of Kazakhstan on Rehabilitation and Bankruptcy (as amended, the LB) is the main legislation governing the insolvency of businesses, including both legal entities and sole traders. Insolvency legislation is not applicable to certain legal entities, including state companies.

Legislative framework for insolvency office holders

The main provisions relating to insolvency office holders (IOHs) are found in the LB; however, other laws are relevant, including the Rules on Registration of Rehabilitation Managers and Bankruptcy Trustees, the Rules on the Appointment and Removal of Rehabilitation Managers and Bankruptcy Trustees and on Professional Development of Rehabilitation Managers and Bankruptcy Trustees. The Resolution on the Minimum Amounts of Basic Administrator Remuneration and the Rules on Payment of Basic Administrator Remuneration set forth further provisions relating to the remuneration of IOHs.

Profile of legal framework

 

Kosovo

 

Legislative framework for insolvency proceedings

 

Insolvency proceedings in the Republic of Kosovo (Kosovo) are governed by the Law on the Liquidation and the Reorganisation of Legal Persons No. 2003 /4 of 13 March 2003 (LRL) and the Law on the Reorganisation of Certain Enterprises and Their Assets No. 04/L- 035 of 26 October 2011.

Legislative framework for insolvency office holders

The main provisions relating to insolvency office holders (IOHs) are found, in addition to the aforementioned laws, inter alia, in the Regulation No. 22/2012 on Determining Special Qualifications, Rewards and Compensation and Bankruptcy Administrators’ Licensing Procedures1 and the Administrative Instruction No. 1/2013 on the Programme of the Exam for Bankruptcy Administrators.

The IOH is a newly regulated profession in Kosovo, and further implementing rules will likely be adopted to supplement the legal framework.

Profile of legal framework


 

 

 

 

 

Kyrgyz Republic

Legislative framework for insolvency proceedings

The Law of the Kyrgyz Republic on Bankruptcy No. 74 dated 15 October 1997 (as amended, the LB) is the main legislation governing the insolvency proceedings of insolvent businesses, including individual entrepreneurs.

Legislative framework for insolvency office holders

The main provisions relating to insolvency office holders (IOHs) are found, inter alia, in the LB. These are supplemented by other laws and regulations, including the Law of the Kyrgyz Republic on Licensing and Permits System No. 195 dated 19 October 2013; the Decree of the Government of the Kyrgyz Republic No. 865 dated 30 December 1998 on the Order of Using Bankruptcy Process Procedures, the Regulation on the Order of Appointment of Administrators by the Bankruptcy Authority No. 584 dated 22 August 2002, the Instruction on Reporting by Administrators That Carry Out Bankruptcy Procedures No. 143 dated 7 April 2011 and the Rules of Conducting Bankruptcy Proceedings No. 865 dated 30 December 1998.

Profile of legal framework
 

 

Latvia

Legislative framework for insolvency proceedings

The Latvian Insolvency Law (LIL) effective from 2010 (as amended) and the Latvian Civil Procedure Law (LCPL) effective from 1999 (as amended) regulate the insolvency of legal entities and natural persons.1

Legislative framework for insolvency office holders

The main provisions relating to insolvency office holders (IOHs) are found in the LIL, which contains detailed provisions regarding the profession. In addition, the following regulations adopted by the Cabinet of Ministers regulate the profession of the IOHs: (i) Regulation No. 1005 Regulation Regarding the Procedure for Third Party Liability Insurance of an Insolvency Administrator and Minimum Amount of Coverage Thereof, adopted on 26 October 2010; (ii) Regulation No. 1003 Regulation Regarding the Activity Report of an Insolvency Administrator and the Procedure for Execution Thereof, adopted on 26 October 2010; (iii) Regulation No. 1001 Procedure Under Which the Insolvency Administration Office Chooses and Recommends to the Court Candidates to the Position of an Insolvency Administrator, adopted on 26 October 2010; and (iv) Regulation No. 1038 Procedure for Training of Candidates to the Position of an Insolvency Administrator.

Profile of Insolvency Framework

 

Lithuania

Legislative framework for insolvency proceedings

The Law on Bankruptcy No. IX-216 of 2001 (as amended, the LB) and the Law on Restructuring of Enterprises No. IX-218 of 2001 (as amended, the LR) set forth the legal framework for business insolvency and restructuring. The LR only applies to legal persons.

Legislative framework for insolvency office holders

In addition to the LB and the LR, legislative provisions relating to insolvency office holders (IOHs) are contained in the Resolution of the Government of the Republic of Lithuania on the forced sale auction of assets owned by the company in bankruptcy; the Resolution of the Government of the Republic of Lithuania on insolvency administrator selection rules;the Resolution of the Government of the Republic of Lithuania on the list of recommended costs for administration of bankruptcy and the rules of determination of the bankruptcy administrator’s remuneration fee; the Order of the Minister of Economy on Monitoring of the Performance of Insolvency Administrators; the Order of the Minister of Economy approving the Code of conduct for IOHs; and the Order of the Minister of Economy on monitoring of the performance of restructuring administrators.

Profile of legal framework


 

 

Moldova

Legislative framework for insolvency proceedings

Insolvency proceedings for legal entities and entrepreneurs in Moldova are governed by the Insolvency Act No. 149 dated 29 June 2012 (the IA). A few provisions regarding insolvency office holders (IOHs) continue to be regulated by the Civil Procedure Code of 2003.

Legislative framework for insolvency office holders

The main provisions relating to IOHs are found in the IA. Further provisions applicable to the profession are found, among other laws, in the Government Decision of the Republic of Moldova No. 1717 dated 27 December 2002 on the Approval of the Rules on Remuneration of Insolvency Administrators and the Law on Authorised Administrators adopted by the Moldovan Parliament on 18 July 2014.

Profile of legal framework

 

 

Montenegro

Legislative framework for insolvency proceedings

The main legislation governing insolvency proceedings for legal entities and entrepreneurs in Montenegro is the Law on Bankruptcy (BA).

Legislative framework for insolvency office holders

In addition to the BA, further provisions relating to insolvency office holders (IOHs) are found, among other laws, in the Rulebook on the Professional Exam for Bankruptcy Trustees and the Rulebook on Specific Principles and Criteria for Determining the Amount of Fees and Remuneration for the Work of Bankruptcy Trustees.

Profile of Insolvency Framework


 

Morocco

Legislative framework for insolvency proceedings

Insolvency proceedings in Morocco are governed by Book V (Businesses Difficulties) of the Commercial Code.1 The insolvency legal framework applies to all traders ("commerçants"), artisans and any commercial companies as defined in the Dahir No. 1-96-83 promulgating the law No. 15-95 on the Commercial Code.

Legislative framework for insolvency office holders

The main provisions relating to insolvency office holders (IOHs) are found in the Commercial Code.

Profile of Insolvency Framework

 

Poland

Legislative framework for insolvency proceedings

The Law on Bankruptcy and Restructuring adopted on 28 February 2003 (as amended, the LBR) contains the general legal framework relating to the insolvency of business, including individual entrepreneurs.

Legislative framework for insolvency office holders

In addition to LBR, provisions relating to insolvency office holders (IOHs) are to be found in the Act on Licensing of Court Receivers adopted on 15 June 2007 (as amended).

Profile of Insolvency Framwork

Romania

Legislative framework for insolvency proceedings

The main law governing insolvency proceedings for businesses (including sole traders) in Romania is the Law No. 85/2014 regarding preventative insolvency proceedings and insolvency proceedings (the Insolvency Law), effective from 28 June 2014. The Code of Civil Procedure contains certain provisions with respect to procedural issues relevant for insolvency proceedings.

Legislative framework for insolvency office holders

In addition to the Insolvency Law, provisions relating to insolvency office holders (IOHs) are found in the Emergency Governmental Ordinance 86/2006 on the Organisation of Activity of Insolvency Practitioners effective from 22 November 2006 (as amended). These are supplemented by the Statute on the Organisation and Exercise of the Insolvency Practitioner Profession, which includes provisions regulating the organisation and function of the National Union of Insolvency Practitioners in Romania (UNPIR), the regulatory body for insolvency office holders (IOHs) in Romania.  A statutory code of professional conduct sets out a code of ethics for IOHs.

Profile of Insolvency Framework

Russian Federation

Legislative framework for insolvency proceedings

The main legislative instrument for insolvency proceedings in Russia is the Federal Law No. 127-FZ on Insolvency (Bankruptcy) of 26 October 2002 (as amended, the FLI). In addition to the FLI, separate legislation applies to the insolvency od special entities, including debtors of a strategic importance.

Legislative framework for insolvency office holders

General provisions relating to insolvency office holders (IOHs) are largely found in the FLI. In addition, further provisions relating to self-regulated organisations (the structure pursuant to which IOHs are organised in Russia) can be found in Federal Law No. 315-FZ on Self-Regulating Organisations of 1 December 2007 (the FLSRO). The framework is further regulated by binding and soft-law insturments issued by the High Arbitrazh court, among other laws, the Plenum Resolution on the Remuneration of IOHs, which is binding on the courts conducting insolvency proceedings.

Foot note: 25 December 2013 No.97, Resolution of the Plenum of the High Arbitrazh Court on Some Issues Relating to the Reward of the Insolvency Office Holders in Insolvency Proceedings.

Profile of Insolvency Framework

Serbia

Legislative framework for insolvency proceedings

The Law on Bankruptcy of the Republic of Serbia of 2009 (as amended, the LOB) is the main legislation governing the insolvency of legal entities in Serbia.

Legislative framework for insolvency office holders

Provisions relating to insolvency office holders (IOHs) are largely found in the LOB. In addition, the Code of Ethics for Bankruptcy Administrators (Official Gazette of the Republic of Serbia, No. 11/10 of 5 March 2010) and the Regulation Establishing the National Standards for Administering the Bankruptcy Estate (Official Gazette of the Republic of Serbia, No. 13 of 12 March 2010) contain provisions relating to the professional conduct of IOHs. Remuneration of IOHs is governed by the Regulation on the Basis and Criteria for Determining Bankruptcy Administrators’ Award and Reimbursement of their Expenses (Official Gazette of Republic of Serbia No. 1/2011 (as amended)). Provisions concerning the role of the regulatory body for IOHs, the Bankruptcy Supervision Agency (the BSA), are found in the Law on Bankruptcy Supervision Agency of 2004 (as amended, the LBSA) and the Regulation on the Manner of Supervision of Bankruptcy Administrators (Official Gazette of the Republic of Serbia, No. 35/2010).

Profile of Insolvency Framework


 

Slovak Republic

Legislative framework for insolvency proceedings

The Act on Bankruptcy and Restructuring, No. 7/2005 Coll. (as amended, the ABR) is the main law governing the insolvency of businesses, including sole traders, in the Slovak Republic.

Legislative framework for insolvency office holders

In addition to the ABR, other laws regulate the IOH profession, including Act No. 8/2005 Coll. on Insolvency Administrators (as amended), Decree of the Ministry of Justice of the Slovak Republic No. 665/2005 Coll. on Execution of Certain Provisions of Act No. 7/2005 Coll. on Bankruptcy and Restructuring (as amended), Decree of the Ministry of Justice of the Slovak Republic No. 291/2005 Coll. on the Educational Code for Insolvency Administrators in the Area of Bankruptcy and Restructuring (as amended) and Decree of the Ministry of Justice of the Slovak Republic No. 666/2005 Coll. on Office Schedules for Insolvency Administrators (as amended).

Profile of Insolvency Framework
 

Slovenia

Legislative framework for insolvency proceedings

The Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act (as amended, IPA) is the framework legislation governing insolvency of business entities in Slovenia.

Legislative framework for insolvency office holders

In addition to the IPA, a number of other secondary laws govern the insolvency office holder (IOH) profession, including the Rules on the Tariff for Assessing the Remuneration and Reimbursement Costs of Administrators in Insolvency Proceedings; the Rules on Presparing the List of Administrators; the Rules on the Proficiency Examination for Performing the Function of Administrator in Insolvency Proceedings; and the Statute establishing the Chamber of Insolvency Administrators of Slovenia.

Profile of Insolvency Framework
 

Tunisia

Legislative framework for insolvency proceedings

The main legislative provisions governing insolvency of businesses (including sole traders) are set out in the Book IV on composition procedures and insolvency of the Commercial Code of 1959 (as amended on 16 April 2016, the Insolvency Law). Further provisions governing distributions on insolvent (and also solvent) liquidation of companies and priority debts are contained in Title III on Liquidation of Companies of the Commercial Code and Title VI of the Real Property Code promulgated by Law No. 65-5 of 12 February 1965 (the Real Property Code) respectively.

Legislative framework for insolvency office holders

In addition to the Insolvency Law, the main provisions relating to insolvency office holders (IOHs) are found in the Law No. 71 of 1997 on Insolvency Office Holders (the IPL) and in a number of orders of the Minister of Justice, including: (i) the Order of the Minister of Justice of 10 February 1998 relating to the Composition of the Commission Responsible for Examining the Request for Registration of IOHs; (ii) the Order of the Minister of Justice of 15 April 1999 relating to the Minimum Amount of Insurance Cover for the Liability of IOHs; and (iii) the Order of the Ministry of Justice of 3 June 2000 relating to Approval of the Manual Governing Proceedings Relating to IOHs.

Profile of Insolvency Framework
 

Turkey

Legislative framework for insolvency proceedings

Insolvency proceedings in Turkey are governed by the Enforcement and Bankruptcy Code no. 2004 (BC). The insolvency legal framework applies to all businesses including natural persons carrying out a commercial activity. The Turkish Commercial Code No. 6102 and various other governmental decrees contain further provisions of relevance to commercial insolvency.

Legislative framework for insolvency office holders

Legislative provisions relating to insolvency office holders (IOHs) are found in the BC.

Profile of Insolvency Framework
 

Ukraine

Legislative framework for insolvency proceedings

The Law of Ukraine on Restoration of Debtor's Solvency or Declatation of Bankruptcy (as amended, the LB) is the main legislation governing the insolvency of legal entities and individual entrepreneurs. General provisions relating to insolvency are also contained in the Commercial Code of Ukraine (as amended), while procedural rules are contained in the Commercial Procedural Code of Ukraine (as amended). Insolvency legislation is not applicable to certain legal entities, including state-owned enterprises with special status (kazenni pidpryemstva).

Legislative framework for insolvency office holders

The main provisions relating to insolvency office holders (IOHs) are found in the LB. However other laws are relevant, including the Orders of the Ministry of Justice of Ukraine on the Approval of the Regulation on the System of Training and Retraining of Persons Intending to Act as Managers (as amended); on the Procedure of Issuing the Certificate and the Right to Pursue the Activities of a Manager (as amended); on the Approval of the Procedure on the Formation and Maintenance of the Unified Register of Managers (as amended); and on the Approval of the Procedure for Monitoring the Activities of Managers (as amended).

Profile of Insolvency Framework