Addressing the key issue of improving the insolvency framework and tackling debt restructuring, Latvia’s Ministry of Justice has completed an 18-month project financed by the European Union through the Structural Reform Support Programme and implemented by the European Bank for Reconstruction and Development (EBRD), in cooperation with the European Commission (DG REFORM) and with the support of a consortium of financial and legal experts led by PricewaterhouseCoopers Latvia.
The project evaluated Latvia’s debt-restructuring environment and identified areas for improvement. More than 500 stakeholders were trained on practical issues related to debt restructuring and cross-border insolvency proceedings. A number of people will act as trainers in future to continue to raise awareness and boost knowledge in this critical area.
A key outcome of the project is a set of new guidelines, issued by the Ministry of Justice, on the identification and management of financial difficulties. This information tool helps owners and managers of small and medium-sized enterprises to identify and address financial difficulties in a practical and timely manner.
The guidelines are available on the Ministry of Justice website and part of a new approach among EU member states to encourage businesses to act early to tackle any financial difficulties and improve their prospects for successful turnaround.
The project builds on the success of previous reforms that strengthened the profession of insolvency practitioners. Other project outcomes include increased awareness and understanding of the role of debt restructuring and the administration of cross-border insolvency proceedings.
The project was formally concluded at the end of March 2021 and a recording of the closing event is available here (in Latvian).