Adoption of new Bankruptcy Code may ensure higher position of Ukraine in Doing Business ranking
The adoption in the second reading of the Code of Ukraine on bankruptcy procedures by the Verkhovna Rada will ensure Ukraine's growth by 80 positions in the Doing Business ranking in the field of resolving insolvency and by 9 positions in the general ranking of the ease of doing business.
Original in Ukrainian: bankruptcy-ua.com
That was announced at the International Conference “Reforming the Bankruptcy System in Ukraine in the Light of Best International Practices”, said Minister of Justice Pavlo Petrenko as reported by the information portal Bankruptcy & Liquidation.
"If Ukrainian MPs pass successfully in the second reading the Code of Ukraine on Bankruptcy Procedures, according to experts, our country will rise by 80 positions in the Doing Business ranking in the field of resolving insolvency. This means to finally join the top 100 countries in the field which is so problematic for our country and Ukrainian business,” said the Minister.
He also added that such a step will improve the position of our country in the general ranking of the ease of doing business by 9 positions. What may bring in Ukraine additional six billion dollars of investment. The key novelties of the Code, as pointed out by the Minister of Justice, are the simplified access to procedures, the enhanced possibilities for rehabilitation, and the creation of effective mechanisms for extrajudicial settlements, joining of the settlement agreement and rehabilitation procedures into a unified process, improved conditions for creditors when participating in the bankruptcy procedures, and increased level of protection of their rights, alongside considerable shortening of the length of trial
“It will become possible to improve the statutory provision relating to the sale of the debtor’s assets. Thus, it will allow selling the debtor’s property at the highest price. Here we are also talking about the introduction of rules for controlling the sale of major assets, ensuring sales at the auction, and improving the rules of notification of the sale of property”, said Minister Petrenko.
In his opinion, what is about to be a real revolution is the regulation of personal insolvency of individuals who ended up in a difficult financial situation and need help from the government. “The Code stipulates the setup of a separate system of regulation of specific legal relations aimed at solving the problem of excessive indebtedness of an individual. This system is supposed to operate along with the bankruptcy system of legal entities and entrepreneurs. Under the proposed project, Individual bankruptcy cases should be dealt with by the economic court at the place of residence of the respetive individual, which will allow having a user-friendly high-professional process”, said the Minister of Justice.
He noted that while preparing the project, among other things, the proposals of legislators, national experts, international organizations, and civil society had been taken into account.
“The project included findings of the Working Group under the Ministry of Justice of Ukraine as to the improvement of Ukraine`s performance indexes and streamlining of the bankruptcy laws, as agreed with the representatives of the International Monetary Fund and the target multiagency working group under the Committee of the Verkhovna Rada of Ukraine on Economic Policy”, said Pavlo Petrenko.
As previously reported by the information portal Bankruptcy & Liquidation, in March, the Rada adopted in the first reading the Code of Bankruptcy Procedures.