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Ease of Doing Business in

Macedonia, FYR

Macedonia, FYR Download Profile (1749.8KB, pdf)
Region Europe & Central Asia
Income Category Upper middle income
Population 2,078,453
GNI Per Capita (US$) 5,140
City covered Skopje

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 10 16 up
6
81.74 79.19 down
2.55
Starting a Business 4 3 down
1
98.14 98.14
-
Dealing with Construction Permits 11 12 up
1
81.71 81.34 up
0.37
Getting Electricity 29 44 up
15
84.51 81.33 up
3.18
Registering Property 48 48
-
74.05 74.02 up
0.03
Getting Credit 16 42 up
26
80.00 65.00 up
15.00
Protecting Minority Investors 13 22 up
9
73.33 68.33 up
5.00
Paying Taxes 9 8 down
1
91.67 91.67
-
Trading across Borders 27 27
-
93.87 93.87
-
Enforcing Contracts 36 27 down
9
67.79 70.46 down
2.67
Resolving Insolvency 32 39 up
7
72.38 67.73 up
4.65

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

DB 2017 Rank:

32

DB 2016 Rank:

39

Change in Rank:

up7

DB 2017 DTF (% points):

72.38

DB 2016 DTF (% points):

67.73

Change in DTF (% points):

up4.65

Indicator Macedonia, FYR Europe & Central Asia OECD high income
Recovery rate (cents on the dollar) info_outline 47.4 38.2 73.0
Time (years) info_outline 1.5 2.2 1.7
Cost (% of estate) info_outline 10 13.1 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0 .. ..
Strength of insolvency framework index (0-16) info_outline 15 9.9 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 47.4
    Proceeding BizBank will initiate bankruptcy proceedings and creditors will need to decide at a later stage whether they want to proceed with reorganization or liquidation. Reorganizations in Macedonia are very rare; creditors are likely to vote for liquidation. Mirage management will likely propose to reorganize the hotel. However, BizBank, as the principal creditor, will push for liquidation, because it can receive the proceeds of the sale right away, rather than wait for loan repayment in the future in case of reorganization. liquidation
    Outcome The hotel does not have sufficient cash flow to operate without assistance and it will be difficult to find a buyer willing to purchase the hotel as a going concern. piecemeal sale
    Time (in years) Liquidation proceedings may take up to 1.5 years. Time has improved recently as a result of reforms implemented over the past several years aimed at improving efficiency of the process. BizBank must file its insolvency petition within 45 days of Mirage`s default on the loan. Within 30 days of the filling, the court will issue a decision commencing insolvency proceeding, appointing a bankruptcy trustee and call for creditors to file their claims within 15 days of publication of the announcement in the Official Gazette. Then the examination hearing must be appoint in the next 45 days. From the day when bankruptcy proceeding was commenced to the day when examination hearing is appointed will past about 60 days. Then the bankruptcy trustee prepares a charter of claims within 15 days after filling the claims from the creditors and on the examination hearing the bankruptcy trustee shall give a statement for each of the received claims. Creditors who are not satisfied with trustee`s decision can start separate litigation proceedings. On the first meeting of the creditors, the creditors have to decide whether to proceed with reorganization or with liquidation of the company. If the creditors decide to liquidate the company, the bankruptcy assets will be sold by e- commerce with public auction. The whole process of sale must end within 90 days of the made decision for liquidation. If the Company's assets can`t be sold after three auctions than the judge in 8 days will make a decision for distribution of the bankruptcy assets among the creditors. 1.5
    Cost (% of estate) Major expenses include remuneration of the insolvency representative (5%), attorney's fees (3%) and fees of other professionals involved in the insolvency proceedings (2%). 10.0
    Answer Score
    Strength of insolvency framework index (0-16) 15.0
    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? (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) 3.0
    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? 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? Yes 1.0
    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”.