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Ease of Doing Business in

Belarus

Belarus Download Profile (1764.2KB, pdf)
Region Europe & Central Asia
Income Category Upper middle income
Population 9,513,000
GNI Per Capita (US$) 6,460
City covered Minsk

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
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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 37 50 up
13
74.13 70.89 down
3.24
Starting a Business 31 30 down
1
92.91 92.87 up
0.04
Dealing with Construction Permits 28 25 down
3
78.32 78.31 up
0.01
Getting Electricity 24 74 up
50
86.01 72.20 up
13.81
Registering Property 5 7 up
2
92.19 90.53 up
1.66
Getting Credit 101 109 up
8
45.00 40.00 up
5.00
Protecting Minority Investors 42 62 up
20
63.33 58.33 up
5.00
Paying Taxes 99 95 down
4
70.40 70.70 down
0.30
Trading across Borders 30 30
-
93.71 93.71
-
Enforcing Contracts 27 28 up
1
70.36 70.36
-
Resolving Insolvency 69 95 up
26
49.08 41.86 up
7.22

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

DB 2017 Rank:

69

DB 2016 Rank:

95

Change in Rank:

up26

DB 2017 DTF (% points):

49.08

DB 2016 DTF (% points):

41.86

Change in DTF (% points):

up7.22

Indicator Belarus Europe & Central Asia OECD high income
Recovery rate (cents on the dollar) info_outline 33.1 38.2 73.0
Time (years) info_outline 1.5 2.2 1.7
Cost (% of estate) info_outline 20 13.1 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0 .. ..
Strength of insolvency framework index (0-16) info_outline 10 9.9 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 33.1
    Proceeding Mirage management will commence insolvency proceedings in order to avoid foreclosure by BizBank and arrest of assets. Additionally, if Mirage management does not initiate insolvency, they might be held jointly liable on the debts of the company. Once insolvency is initiated and an administrator is appointed, the administrator has to decide whether to undertake reorganization or liquidation procedure. BizBank is the majority creditor and creditors have to approve which procedure takes place. Vote of BizBank, as the majority creditor, will be decisive. BizBank is not likely to support reorganization procedure, therefore, liquidation will take place. liquidation
    Outcome In practice, companies start insolvency proceedings at the point when it is too late to save the company. As a result of liquidation (bankruptcy) proceedings, the assets will be sold piecemeal. piecemeal sale
    Time (in years) It takes up to 1.5 years to complete liquidation proceedings in Belarus. Debtor may file a petition for the opening of insolvency proceedings under Art. 8 of the Law on "Economic insolvency (bankruptcy)". After the petition is accepted, the debtor will go into the protection period of up to 3 months, which can be extended up to 3 years (Art. 39). At the end of the protection period, the court will decide whether to initiate insolvency proceedings and will appoint an administrator (Art. 46). The court will decide, based on the decision of the creditors' meeting how to proceed in the insolvency proceedings - through liquidation or through reorganization (Art. 49, Art. 124). 1.5
    Cost (% of estate) Main expenses will include remuneration of the insolvency representative (8%), fees of attorneys (3%), accountants and other professionals working on the case (3%), fees of the auctioneer (3%) and other expenses (3%). 20.0
    Answer Score
    Strength of insolvency framework index (0-16) 10.0
    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) 5.5
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? Yes 1.0
    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? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all pre-commencement creditors, secured or unsecured 0.5
    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) 2.0
    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? Yes 1.0
    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”.