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Ease of Doing Business in

Tonga

Tonga Download Profile (1694.5KB, pdf)
Region East Asia & Pacific
Income Category Lower middle income
Population 106,170
GNI Per Capita (US$) 4,067
City covered Nukualofa

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 85 76 down
9
63.58 63.83 down
0.25
Starting a Business 55 48 down
7
90.85 90.75 up
0.10
Dealing with Construction Permits 14 7 down
7
80.96 83.79 down
2.83
Getting Electricity 67 64 down
3
76.29 76.26 up
0.03
Registering Property 158 156 down
2
44.64 44.64
-
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 123 118 down
5
45.00 45.00
-
Paying Taxes 80 78 down
2
73.76 73.76
-
Trading across Borders 100 98 down
2
68.20 68.20
-
Enforcing Contracts 92 91 down
1
57.32 57.32
-
Resolving Insolvency 132 131 down
1
33.82 33.60 up
0.22

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

DB 2017 Rank:

132

DB 2016 Rank:

131

Change in Rank:

down1

DB 2017 DTF (% points):

33.82

DB 2016 DTF (% points):

33.60

Change in DTF (% points):

up0.22

Indicator Tonga East Asia & Pacific OECD high income
Recovery rate (cents on the dollar) info_outline 28 33.9 73.0
Time (years) info_outline 2.7 2.6 1.7
Cost (% of estate) info_outline 22 20.6 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 7.1 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 28.0
    Proceeding After Mirage's default, BizBank would initiate foreclosure through filing at the Supreme Court, which will review the case, hear the appeal from related parties and make a decision on BizBank's foreclosure request. After the order is made, the court will endorse BizBank's mortgage repossession. foreclosure
    Outcome After Court's decision on Mirage's case, BizBank would gain possession of Mirage's assets and sell them piecemeal. piecemeal sale
    Time (in years) The foreclosure procedure until BizBank is repaid some or all of the money owed to it takes about 32 months. After Mirage's default, BizBank will send 3 warning letters over three months: one warning letter per month. Only after that, BizBank can initiate foreclosure by filing the application at the Supreme Court. 2.7
    Cost (% of estate) The costs associated with the case would amount to approximately 22% of the value of the debtor's estate. Main component of the cost is the attorney’s fee which is TOP 300 per day on average. 22.0
    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) 3.0
    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? 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? 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) 1.0
    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? 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”.