Eritrea

Ease of Doing Business in

Eritrea

This page summarizes Doing Business 2014 data for Eritrea. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Sub-Saharan Africa
Income Category Low income
Population 6,130,922
GNI Per Capita (US$) 450
City covered Asmara
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
184 185 down 1

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Improvement in DTF** (% points)
34.69 34.47 down 0.22
 

Getting Credit

Info

Measures on credit information sharing and the legal rights of borrowers and lenders are shown below. The Legal Rights Index ranges from 0-10, with higher scores indicating that those laws are better designed to expand access to credit. The Credit Information Index measures the scope, access and quality of credit information available through public registries or private bureaus. It ranges from 0-6, with higher values indicating that more credit information is available from a public registry or private bureau.

DB 2014 Rank 186 DB 2013 Rank*** 182 Change in Rank down-4
DB 2014 DTF** (% points) 12.50 DB 2013 DTF** (% points) 12.50 Improvement in DTF** (% points) 0.00
Indicator Eritrea Sub-Saharan Africa OECD

This index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending.

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Strength of legal rights index (0-10)
2 6 7

This index measures rules and practices affecting the coverage, scope and accessibility of credit information available through either a public credit registry or a private credit bureau.

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Depth of credit information index (0-6)
0 2 5

This indicator reports the number of individuals and firms listed in a public credit registry with information on their borrowing history from the past 5 years.

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Public registry coverage (% of adults)
0.0 4.3 15.2

This indicator reports the number of individuals and firms listed by a private credit bureau with information on their borrowing history from the past 5 years.

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Private bureau coverage (% of adults)
0.0 5.9 66.7
Depth of credit information index (0-6) Private credit bureau Public credit registry Score
Are data on both firms and individuals distributed? No No 0
Are both positive and negative data distributed? No No 0
Does the registry distribute credit information from retailers or utility companies as well as financial institutions? No No 0
Are more than 2 years of historical credit information distributed? No No 0
Is data on all loans below 1% of income per capita distributed? No No 0
Is it guaranteed by law that borrowers can inspect their data in the largest credit registry? No No 0
Score ("yes" to either public bureau or private registry) 0
Strength of legal rights index (0-10)
Can any business use movable assets as collateral while keeping possession of the assets; and any financial institution accept such assets as collateral ? Yes
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description of collateral? No
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of collateral? No
May a security right extend to future or after-acquired assets, and may it extend automatically to the products, proceeds or replacements of the original assets ? No
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? No
Is a collateral registry in operation, that is unified geographically and by asset type, with an electronic database indexed by debtor's names? No
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? No
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No
Are secured creditors either not subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure, or does the law provide secured creditors with grounds for relief from an automatic stay or/and sets a time limit to it? Yes
Does the law allow parties to agree in a collateral agreement that the lender may enforce its security right out of court, at the time a security interest is created? No
Score (number of "yes" responses) 2
Coverage Private credit bureau Public credit registry
Number of individuals00
Number of firms00
Percent of total 0.0 0.0

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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