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Ease of Doing Business in

Marshall Islands

Marshall Islands Download Profile (1604.8KB, pdf)
Region East Asia & Pacific
Income Category Upper middle income
Population 52,993
GNI Per Capita (US$) 4,241
City covered Majuro

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 143 137 down
6
51.92 51.90 down
0.02
Starting a Business 70 68 down
2
88.41 88.38 up
0.03
Dealing with Construction Permits 79 75 down
4
70.77 70.72 up
0.05
Getting Electricity 126 125 down
1
59.14 59.10 up
0.04
Registering Property 187 187
-
0.00 0.00
-
Getting Credit 82 78 down
4
50.00 50.00
-
Protecting Minority Investors 175 176 up
1
31.67 31.67
-
Paying Taxes 82 81 down
1
73.45 73.45
-
Trading across Borders 64 62 down
2
80.59 80.59
-
Enforcing Contracts 99 98 down
1
55.93 55.93
-
Resolving Insolvency 167 167
-
9.19 9.19
-

DB 2017 Rank: 167

DB 2016 Rank: 167

Change in Rank: 0

DB 2017 DTF (% points): 9.19

DB 2016 DTF (% points): 9.19

Change in DTF (% points): 0.00

Indicator Marshall Islands East Asia & Pacific OECD high income
Recovery rate (cents on the dollar) info_outline 17.1 33.9 73.0
Time (years) info_outline 2.0 2.2 1.7
Cost (% of estate) info_outline 38.0 18.0 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0.0 0 1
Strength of insolvency framework index (0-16) info_outline 0.0 7.1 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 17.1
    Proceeding There is no legal framework regulating corporate insolvency in Marshall Islands. After Mirage's default, BizBank would initiate foreclosure through filing at the Trial Court. foreclosure
    Outcome After Court's decision on Mirage's case, BizBank would gain possession of Mirage's assets and sell them piecemeal in a public auction. The hotel will stop operating. piecemeal sale
    Time (in years) The foreclosure procedure until BizBank is repaid some or all of the money owed to it takes approximate 2 years. 2.0
    Cost (% of estate) The costs associated with the case would amount to approximately 38% of the value of the debtor's estate. Main component of the cost is the attorney fee (20%), auctioneers fees (10%), accountant fees (4%) and an additional (4%) related to cost such as notification, publication or other costs associated with the auction. 38.0
    Answer Score
    Strength of insolvency framework index (0-16) 0.0
    Commencement of proceedings index (0-3) 0.0
    What procedures are available to a DEBTOR when commencing insolvency proceedings? N/A 0.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? N/A 0.0
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? N/A 0.0
    Management of debtor's assets index (0-6) 0.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? No 0.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? No 0.0
    Does the insolvency framework allow avoidance of preferential transactions? No 0.0
    Does the insolvency framework allow avoidance of undervalued transactions? No 0.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? No 0.0
    Does the insolvency framework assign priority to post-commencement credit? (c) No priority is assigned to post-commencement creditors 0.0
    Reorganization proceedings index (0-3) 0.0
    Which creditors vote on the proposed reorganization plan? N/A 0.0
    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) 0.0
    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? No 0.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? No 0.0

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”.