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Ease of Doing Business in

Dominican Republic

Dominican Republic Download Profile (1773.7KB, pdf)
Region Latin America & Caribbean
Income Category Upper middle income
Population 10,528,391
GNI Per Capita (US$) 6,130
City covered Santo Domingo

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 103 103
0
59.35 59.08 down
0.27
Starting a Business 115 108 down
7
83.34 83.12 up
0.22
Dealing with Construction Permits 45 44 down
1
75.20 75.01 up
0.19
Getting Electricity 148 151 up
3
52.18 50.58 up
1.60
Registering Property 82 83 up
1
65.61 65.17 up
0.44
Getting Credit 101 97 down
4
45.00 45.00
-
Protecting Minority Investors 87 85 down
2
53.33 53.33
-
Paying Taxes 129 131 up
2
60.70 60.33 up
0.37
Trading across Borders 58 56 down
2
83.51 83.51
-
Enforcing Contracts 131 129 down
2
51.03 51.03
-
Resolving Insolvency 160 160
-
23.55 23.70 down
0.15

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

DB 2017 Rank:

160

DB 2016 Rank:

160

Change in Rank:

0

DB 2017 DTF (% points):

23.55

DB 2016 DTF (% points):

23.70

Change in DTF (% points):

down0.15

Indicator Dominican Republic Latin America & Caribbean OECD high income
Recovery rate (cents on the dollar) info_outline 8.9 31.0 73.0
Time (years) info_outline 3.5 2.9 1.7
Cost (% of estate) info_outline 38 16.7 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 7.1 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 8.9
    Proceeding BizBank would initiate a foreclosing proceeding to avail itself of its security right. However, Mirage will file a petition to initiate a collective insolvency proceeding of liquidation. A judgment opening insolvency proceedings will be handed down by the Court, along with the appointment of a liquidator. The liquidator would finalize the creditors' claims and prepare Mirage' assets for sale. Some or all of the proceeds of the sale are paid to BizBank. liquidation (after an attempt at foreclosure)
    Outcome The hotel won’t be able to continue operating and the assets of Mirage will be sold piecemeal. Insolvency proceedings in the Dominican Republic tend to conclude with the dissolution of the insolvent debtor. There is no legislation related to reorganization in the Dominican Republic. piecemeal sale
    Time (in years) The liquidation proceeding after an attempt at foreclosure would take about 3.5 years. The procedure would start by the Bank filing for foreclosure which will take around 6 months. The Court will adjudicate the status of bankruptcy of the debtor converting the foreclosure procedure into a liquidation proceeding. This stage would take approximately 6 months. Afterwards, a liquidator will be appointed and the list of creditors’ claims will be issued. This stage will take from 1 to 1.5 years. The sale of the debtor’s assets may take up to 2 years. 3.5
    Cost (% of estate) The estimated cost would amount to approximately 38% of the value of Mirage’s estate. The main component of this expense would be the attorney’s fees (17%), court expenses, notification costs and administrative fees (10 %), auctioneer fees (10 %), and other professionals, including accountants (1%) 38.0
    Answer Score
    Strength of insolvency framework index (0-16) 6.0
    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? 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) 0.0
    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) 2.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? Yes 1.0
    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”.