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Ease of Doing Business in

Estonia

Estonia Download Profile (1713.6KB, pdf)
Region OECD high income
Income Category High income
Population 1,311,998
GNI Per Capita (US$) 18,480
City covered Tallinn

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 12 11 down
1
81.05 81.01 down
0.04
Starting a Business 14 11 down
3
95.13 95.06 up
0.07
Dealing with Construction Permits 9 10 up
1
82.57 82.55 up
0.02
Getting Electricity 38 33 down
5
83.20 83.25 down
0.05
Registering Property 6 4 down
2
91.02 91.01 up
0.01
Getting Credit 32 29 down
3
70.00 70.00
-
Protecting Minority Investors 53 51 down
2
60.00 60.00
-
Paying Taxes 21 19 down
2
88.04 87.89 up
0.15
Trading across Borders 17 17
-
99.92 99.92
-
Enforcing Contracts 11 11
-
75.16 75.16
-
Resolving Insolvency 42 41 down
1
65.46 65.28 up
0.18

DB 2017 Rank:

42

DB 2016 Rank:

41

Change in Rank:

down1

DB 2017 DTF (% points):

65.46

DB 2016 DTF (% points):

65.28

Change in DTF (% points):

up0.18

Indicator Estonia OECD high income
Recovery rate (cents on the dollar) info_outline 40.3 73.0
Time (years) info_outline 3 1.7
Cost (% of estate) info_outline 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 14 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 40.3
    Proceeding Because Mirage is not able to make its loan payment, it is most probable that BizBank would first send Mirage a bankruptcy warning and, if Mirage still fails to pay, BizBank would file a bankruptcy application against Mirage. liquidation
    Outcome In order to keep the hotel operating, creditors would have to finance its operations. The bank would likely be interested in returning its money as soon as possible and not in lending more money to the hotel, therefore, it would advocate for a piecemeal sale of assets. The proportion of businesses that survive insolvency as a going concern is significantly small. piecemeal sale
    Time (in years) It takes up to 3 years to resolve liquidation in Estonia, assuming each party uses every opportunity set out by law to delay the process and pursue their agenda, which is most likely based on practice. 3.0
    Cost (% of estate) The majority of the expenses will be used to pay the insolvency representative (up at 5%), attorneys’ fees and fees of other professionals involved in the insolvency proceedings will be the other main expenses. Filing and publication fees are very minimal. 9.0
    Answer Score
    Strength of insolvency framework index (0-16) 14.0
    Commencement of proceedings index (0-3) 2.5
    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? (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? (c) Both (a) and (b) options are available, but only one of them needs to be complied with 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) 2.0
    Which creditors vote on the proposed reorganization plan? (b) Only creditors whose rights are affected by the proposed plan 1.0
    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? Yes 1.0
    Creditor participation index (0-4) 4.0
    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? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? Yes 1.0
    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”.