Marshall Islands

Ease of Doing Business in

Marshall Islands

This page summarizes Doing Business 2015 data for the Marshall Islands. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region East Asia & Pacific
Income Category Upper middle income
Population 52,634
GNI Per Capita (US$) 4,200
City covered Majuro
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
139 136 down -3

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
54.72 54.83 down -0.11

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 2015 Rank 71 DB 2014 Rank*** 67 Change in Rank down-4
DB 2015 DTF** (% points) 50.00 DB 2014 DTF** (% points) 50.00 Change in DTF** (% points) 0.00
Indicator Marshall Islands East Asia & Pacific 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 (0-12)
10 6 6

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 (0-8)
0 4 7

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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Credit registry coverage (% of adults)
0.0 11.0 12.1

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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Credit bureau coverage (% of adults)
0.0 20.4 67.0
Depth of credit information index (0-8) Private credit bureau Public credit registry Score
Are data on both firms and individuals distributed? No No 0
Are both positive and negative credit data distributed? No No 0
Are data from retailers or utility companies - in addition to data from banks and financial institutions - distributed? No No 0
Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) No No 0
Are data on loan amounts below 1% of income per capita distributed? No No 0
By law, do borrowers have the right to access their data in the credit bureau or credit registry? No No 0
Can banks and financial institutions access borrowers’ credit information online (for example, through an online platform, a system-to-system connection or both)? No No 0
Are bureau or registry credit scores offered as a value-added service to help banks and financial institutions assess the creditworthiness of borrowers? No No 0
Score ("yes" to either public bureau or private registry) 0
Strength of legal rights index (0-12)
Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents to security interests in movable assets exist in the economy? 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? Yes
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? Yes
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? Yes
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? Yes
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an electronic database indexed by debtor's name? Yes
Does a notice-based collateral registry exist in which all functional equivalents can be registered? Yes
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third party? Yes
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? Yes
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? No
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell the collateral through public auction and private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Yes
Score (number of "yes" responses) 10
Coverage Private credit bureau Public credit registry
Number of individuals00
Number of firms00
Total00
Percentage of adult population 0.0 0.0

**The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

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

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