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Ease of Doing Business in

Morocco

Morocco Download Profile (1738.3KB, pdf)
Region Middle East & North Africa
Income Category Lower middle income
Population 34,377,511
GNI Per Capita (US$) 3,040
City covered Casablanca

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 68 68
0
67.50 65.82 down
1.68
Starting a Business 40 40
-
92.34 92.06 up
0.28
Dealing with Construction Permits 18 18
-
79.77 79.32 up
0.45
Getting Electricity 57 55 down
2
79.71 79.31 up
0.40
Registering Property 87 92 up
5
63.94 62.74 up
1.20
Getting Credit 101 109 up
8
45.00 40.00 up
5.00
Protecting Minority Investors 87 118 up
31
53.33 45.00 up
8.33
Paying Taxes 41 37 down
4
83.51 83.61 down
0.10
Trading across Borders 63 68 up
5
81.12 79.97 up
1.15
Enforcing Contracts 57 58 up
1
62.34 62.34
-
Resolving Insolvency 131 130 down
1
33.89 33.89
-

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

DB 2017 Rank:

131

DB 2016 Rank:

130

Change in Rank:

down1

DB 2017 DTF (% points):

33.89

DB 2016 DTF (% points):

33.89

Change in DTF (% points):

0.00

Indicator Morocco Middle East & North Africa OECD high income
Recovery rate (cents on the dollar) info_outline 28.1 26.0 73.0
Time (years) info_outline 3.5 3.0 1.7
Cost (% of estate) info_outline 18 13.8 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0 .. ..
Strength of insolvency framework index (0-16) info_outline 6 5.3 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 28.1
    Proceeding As Mirage will not be able to settle its current liabilities with its available assets, it will request commencement of insolvency proceedings no later than 15 days after the cessation of payments (this allows the stay of proceedings and delays the sale of the collateral). If the situation of the company is not irremediably jeopardized, the reorganization will be declared, under article 561 of the Commercial Code. If a reorganization plan is not proposed or if the activity cannot continue, the court will declare the liquidation of Mirage. According to our information, the reorganization will fail and proceedings will be converted into liquidation by the court some months after the opening. This (liquidation after an attempt at reorganization) would be the most likely procedure in Morocco. liquidation (after an attempt at reorganization)
    Outcome According to our estimations, the reorganization attempt will fail and the proceedings will probably be converted to liquidation. The hotel will stop operating and will be dismantled, and the assets of the debtor will be sold separately. piecemeal sale
    Time (in years) According to our estimations, a reorganization attempt that is later converted to liquidation takes approximately 42 months in Morocco. The reorganization attempt will take 12 months (2 months to obtain judgment, 8 months for the syndic to elaborate the report, 2 months for the verification of claims). Then, liquidation is opened and this phase takes around 12 months. Then, the sale of the hotel building, which is the only asset of Mirage, will take approximately 18 months. 3.5
    Cost (% of estate) According to our estimations, a reorganization attempt that is later converted into liquidation costs approximately MAD 462,700 (18% of the value of the estate). Lawyer fees (5%), syndic fees (10%) and bailiffs and court fees (3%) constitute the main fees of the procedure. 18.0
    Answer Score
    Strength of insolvency framework index (0-16) 6.0
    Commencement of proceedings index (0-3) 2.0
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (b) Debtor may file for liquidation only 0.5
    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) 4.0
    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? 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? (c) Other 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”.