#

Ease of Doing Business in

Finland

Finland Download Profile (1711.5KB, pdf)
Region OECD high income
Income Category High income
Population 5,482,013
GNI Per Capita (US$) 46,360
City covered Helsinki

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 13 12 down
1
80.84 80.85 down
0.01
Starting a Business 28 26 down
2
93.13 93.11 up
0.02
Dealing with Construction Permits 40 36 down
4
75.72 75.82 down
0.10
Getting Electricity 18 16 down
2
88.97 88.97
-
Registering Property 20 19 down
1
82.94 82.94
-
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 70 69 down
1
56.67 56.67
-
Paying Taxes 13 12 down
1
90.23 90.31 down
0.08
Trading across Borders 33 33
-
92.44 92.44
-
Enforcing Contracts 30 29 down
1
69.40 69.40
-
Resolving Insolvency 1 1
-
93.89 93.81 up
0.08

DB 2017 Rank:

1

DB 2016 Rank:

1

Change in Rank:

0

DB 2017 DTF (% points):

93.89

DB 2016 DTF (% points):

93.81

Change in DTF (% points):

up0.08

Indicator Finland OECD high income
Recovery rate (cents on the dollar) info_outline 90.3 73.0
Time (years) info_outline 0.9 1.7
Cost (% of estate) info_outline 3.5 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 ..
Strength of insolvency framework index (0-16) info_outline 14.5 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 90.3
    Proceeding Mirage management will have a better understanding of the financial state of the hotel and will be able to commence insolvency proceedings before BizBank can initiate enforcement action. Hotel management may propose a restructuring plan however, BizBank, as the majority creditor can defeat it. As BizBank has a floating charge over the hotel property, it could notify the liquidator of the existence of the security interest and the liquidator would then sell the assets and distribute them. However, BizBank would only be able to retain 50% of the value of such floating charge, while the remainder of that value would be applied towards satisfying the other creditors. Therefore, BizBank would not oppose the restructuring plan. reorganization
    Outcome Sale as a going concern is the best way to maximize the value of the hotel. going concern
    Time (in years) It takes 11 months to resolve insolvency in Finland. The reorganization plan must be proposed within four months after the commencement of the reorganization proceedings. After the approval of the plan, a debtor company starts to comply with it and its implementation might take approximately 1-7 years. 0.9
    Cost (% of estate) Main expenses include attorneys' fees, remuneration of the liquidator and fees of other professionals involved in the insolvency proceedings. 3.5
    Answer Score
    Strength of insolvency framework index (0-16) 14.5
    Commencement of proceedings index (0-3) 3.0
    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? (a) Yes, a creditor may file for both liquidation and reorganization 1.0
    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) 6.0
    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? (b) Yes over ordinary unsecured creditors but not over secured creditors 1.0
    Reorganization proceedings index (0-3) 2.5
    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? Yes 1.0
    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) 3.0
    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? 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”.