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Ease of Doing Business in

Bangladesh

Bangladesh Download Profile (1990KB, pdf)
Region South Asia
Income Category Lower middle income
Population 160,995,642
GNI Per Capita (US$) 1,190
City covered Dhaka , Chittagong

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 176 178 up
2
40.84 40.68 down
0.16
Starting a Business 122 115 down
7
81.74 81.72 up
0.02
Dealing with Construction Permits 138 138
-
61.60 61.25 up
0.35
Getting Electricity 187 187
-
16.17 15.22 up
0.95
Registering Property 185 186 up
1
27.58 27.48 up
0.10
Getting Credit 157 152 down
5
25.00 25.00
-
Protecting Minority Investors 70 69 down
1
56.67 56.67
-
Paying Taxes 151 148 down
3
55.56 56.07 down
0.51
Trading across Borders 173 173
-
34.86 34.86
-
Enforcing Contracts 189 189
-
22.21 22.21
-
Resolving Insolvency 151 153 up
2
27.02 26.36 up
0.66

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

Viewing the data for

DB 2017 DTF (% points):

27.02

DB 2016 DTF (% points):

26.36

Change in DTF (% points):

up0.66

Indicator Dhaka South Asia OECD high income
Recovery rate (cents on the dollar) info_outline 27 32.6 73.0
Time (years) info_outline 4 2.6 1.7
Cost (% of estate) info_outline 8 9.9 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0 .. ..
Strength of insolvency framework index (0-16) info_outline 4 4.5 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 27.0
    Proceeding After 90 days of automatic stay, the Bizbank would initiate foreclosure through Artha Rin Adalat Bankruptcy Court which is established under the Artha Rin Adalat Act 2003 for banks and non-banking financial institutions (NBFIs). Artha Rin Adalat Bankruptcy Court would then review the case and makes decision on Mirages's application. Once a decree has been passed against the entity, the bank files for execution of the decree and the Court conducts a piecemeal sale of Mirage's assets in a public auction. foreclosure
    Outcome No, the hotel will stop operating and Mirage assets will be sold piecemeal in a public auction conducted by the Artha Rin Courts after granting the order on the BizBank's foreclosure application. piecemeal sale
    Time (in years) A foreclosure procedure will approximately take 4 years in total. BizBank would initiate foreclosure after the 90 days automatic stay, and after filing the application to the Artha Rin Bankruptcy Court, it usually takes another year to get a decree from the Artha Rin Bankruptcy Court (1-2 years). The execution of the decree until BizBank is repaid some or all of the money owed to it from the auction proceeds would take additional 1 to 2 years. 4.0
    Cost (% of estate) The costs associated with the case would amount to approximately 8% of the value of the debtor's estate. Cost incurred during the entire insolvency process mainly include court or government agency fees (1%), attorney fees (up to 5%), costs of notification and publication (1%), fees of accountants, assessors, inspectors and other professionals (1%), and auctioneer fees (1%). 8.0
    Answer Score
    Strength of insolvency framework index (0-16) 4.0
    Commencement of proceedings index (0-3) 2.0
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (b) Debtor may file for liquidation only 0.5
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor may file for liquidation only 0.5
    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? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? No 0.0
    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) 0.0
    Which creditors vote on the proposed reorganization plan? N/A 0.0
    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) 0.0
    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? No 0.0

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”.