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Ease of Doing Business in

Trinidad and Tobago

Trinidad and Tobago Download Profile (1734.6KB, pdf)
Region Latin America & Caribbean
Income Category High income
Population 1,360,088
GNI Per Capita (US$) 18,600
City covered Port of Spain

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 96 92 down
4
60.99 61.07 down
0.08
Starting a Business 69 69
-
88.59 88.33 up
0.26
Dealing with Construction Permits 149 149
-
59.21 59.20 up
0.01
Getting Electricity 31 24 down
7
84.36 84.30 up
0.06
Registering Property 150 151 up
1
47.51 47.50 up
0.01
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 53 51 down
2
60.00 60.00
-
Paying Taxes 145 142 down
3
57.33 57.33
-
Trading across Borders 123 114 down
9
62.60 63.48 down
0.88
Enforcing Contracts 168 167 down
1
36.55 36.55
-
Resolving Insolvency 70 66 down
4
48.74 48.97 down
0.23

DB 2017 Rank:

70

DB 2016 Rank:

66

Change in Rank:

down4

DB 2017 DTF (% points):

48.74

DB 2016 DTF (% points):

48.97

Change in DTF (% points):

down0.23

Indicator Trinidad and Tobago Latin America & Caribbean OECD high income
Recovery rate (cents on the dollar) info_outline 26.7 31.0 73.0
Time (years) info_outline 2.5 2.9 1.7
Cost (% of estate) info_outline 25 16.7 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0 .. ..
Strength of insolvency framework index (0-16) info_outline 11 7.1 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 26.7
    Proceeding After Mirage's default on payment, BizBank is likely to immediately appoint a receiver and in the terms of the debenture to take control of all charged assets of Mirage The BizBank appointed receiver will try to examine the viability of the firm. If it's viable, the receiver will try to help the business to reorganize, otherwise, he will conduct piecemeal sale of the assets, both scenarios under protection and guidance of the High Court. receivership
    Outcome Even though the BizBank appointed receiver will try to sell the business as a going concern, it's unlikely to happen considering the market condition in Trinidad and Tobago. Sale of the assets will take place informally as there are usually no auctions. piecemeal sale
    Time (in years) The receivership proceeding takes approximate 2.5 years until BizBank is repaid some or all of the money owed to it. The delay is largely due to potential objections from debtors and the difficulty to find buyers of Mirage's assets. 2.5
    Cost (% of estate) The costs associated with the case would amount to approximately 25% of the value of the debtor's estate. Main components of the costs incurred include attorney fees and receiver fees. 25.0
    Answer Score
    Strength of insolvency framework index (0-16) 11.0
    Commencement of proceedings index (0-3) 2.5
    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? (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? (c) Both (a) and (b) options are available, but only one of them needs to be complied with 1.0
    Management of debtor's assets index (0-6) 4.5
    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? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all pre-commencement creditors, secured or unsecured 0.5
    Reorganization proceedings index (0-3) 1.0
    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? 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) 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? Yes 1.0
    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”.