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Ease of Doing Business in

Algeria

Algeria Download Profile (1751.2KB, pdf)
Region Middle East & North Africa
Income Category Upper middle income
Population 39,666,519
GNI Per Capita (US$) 4,870
City covered Algiers

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 156 163 up
7
47.76 45.88 down
1.88
Starting a Business 142 145 up
3
77.54 76.08 up
1.46
Dealing with Construction Permits 77 119 up
42
71.02 64.56 up
6.46
Getting Electricity 118 130 up
12
60.58 57.56 up
3.02
Registering Property 162 161 down
1
43.83 43.83
-
Getting Credit 175 174 down
1
10.00 10.00
-
Protecting Minority Investors 173 174 up
1
33.33 33.33
-
Paying Taxes 155 170 up
15
53.99 46.10 up
7.89
Trading across Borders 178 178
-
24.15 24.15
-
Enforcing Contracts 102 100 down
2
55.49 55.49
-
Resolving Insolvency 74 71 down
3
47.67 47.67
-

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

74

DB 2016 Rank:

71

Change in Rank:

down3

DB 2017 DTF (% points):

47.67

DB 2016 DTF (% points):

47.67

Change in DTF (% points):

0.00

Indicator Algeria Middle East & North Africa OECD high income
Recovery rate (cents on the dollar) info_outline 50.8 26.0 73.0
Time (years) info_outline 1.3 3.0 1.7
Cost (% of estate) info_outline 7 13.8 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0 .. ..
Strength of insolvency framework index (0-16) info_outline 6.5 5.3 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 50.8
    Proceeding Mirage cannot repay the amount due to BizBank, so the bank will start foreclosure proceedings at the First Instance Court. At the end of the procedure, the hotel building will be sold and Bizbank will be repaid. foreclosure
    Outcome Foreclosure proceedings will lead to the sale of the building and the repayment to creditors, so the hotel will no longer exist. piecemeal sale
    Time (in years) According to our estimations, the entire foreclosure procedure would take 16 months. 1.3
    Cost (% of estate) According to our estimations, the entire foreclosure proceedings would cost approximately 7% of the value of the estate. The following cost components are applicable: court fees (12.000 DZD), lawyer fees (up to 5%), and other professionals (court bailiff 2%). 7.0
    Answer Score
    Strength of insolvency framework index (0-16) 6.5
    Commencement of proceedings index (0-3) 3.0
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor may file for both liquidation and reorganization 1.0
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature 1.0
    Management of debtor's assets index (0-6) 2.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? No 0.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? No 0.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? No 0.0
    Does the insolvency framework assign priority to post-commencement credit? (c) No priority is assigned to post-commencement creditors 0.0
    Reorganization proceedings index (0-3) 0.5
    Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? No 0.0
    Creditor participation index (0-4) 1.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? No 0.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? No 0.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.