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Ease of Doing Business in

Iceland

Iceland Download Profile (1712.6KB, pdf)
Region OECD high income
Income Category High income
Population 330,823
GNI Per Capita (US$) 49,730
City covered Reykjavik

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 20 18 down
2
78.91 78.88 down
0.03
Starting a Business 34 35 up
1
92.64 92.44 up
0.20
Dealing with Construction Permits 70 68 down
2
71.66 71.61 up
0.05
Getting Electricity 9 9
-
92.24 92.24
-
Registering Property 15 15
-
86.61 86.61
-
Getting Credit 62 60 down
2
60.00 60.00
-
Protecting Minority Investors 22 18 down
4
70.00 70.00
-
Paying Taxes 29 31 up
2
84.88 84.88
-
Trading across Borders 66 66
-
80.27 80.27
-
Enforcing Contracts 32 31 down
1
69.10 69.10
-
Resolving Insolvency 14 14
-
81.70 81.65 up
0.05

DB 2017 Rank:

14

DB 2016 Rank:

14

Change in Rank:

0

DB 2017 DTF (% points):

81.70

DB 2016 DTF (% points):

81.65

Change in DTF (% points):

up0.05

Indicator Iceland OECD high income
Recovery rate (cents on the dollar) info_outline 85 73.0
Time (years) info_outline 1 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 11.5 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 85.0
    Proceeding Management of the debtor will file for reorganization, because that is the best way to save the business. reorganization
    Outcome Even a liquidation process often ends with a composition agreement, so that the business can be saved. Thus, in case of successful composition agreement (reorganization), the hotel will continue operating. going concern
    Time (in years) Insolvency cases take 8-20 months to resolve, depending on the volume of cases disputed. 1.0
    Cost (% of estate) The costs are mainly composed of legal fees (around ISK 9 million) and fees of the insolvency administrator (up to ISK 4,000,000). Other expenses include court fees (up to ISK 325,000), publication costs (ISK 20,000), accountant fees (up to ISK 2 million) and fees of other professionals involved in the insolvency proceedings (up to ISK 500,000). 3.5
    Answer Score
    Strength of insolvency framework index (0-16) 11.5
    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? (a) Debtor is generally unable to pay its debts as they mature 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) 1.0
    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? 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? 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”.