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Ease of Doing Business in

Ukraine

Ukraine Download Profile (1799.5KB, pdf)
Region Europe & Central Asia
Income Category Lower middle income
Population 45,198,200
GNI Per Capita (US$) 2,620
City covered Kiev

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 80 81 up
1
63.90 62.77 down
1.13
Starting a Business 20 24 up
4
94.40 93.88 up
0.52
Dealing with Construction Permits 140 137 down
3
61.42 61.36 up
0.06
Getting Electricity 130 140 up
10
58.45 54.84 up
3.61
Registering Property 63 62 down
1
69.61 69.44 up
0.17
Getting Credit 20 19 down
1
75.00 75.00
-
Protecting Minority Investors 70 101 up
31
56.67 50.00 up
6.67
Paying Taxes 84 83 down
1
72.72 72.99 down
0.27
Trading across Borders 115 110 down
5
64.26 65.15 down
0.89
Enforcing Contracts 81 93 up
12
58.96 57.11 up
1.85
Resolving Insolvency 150 148 down
2
27.50 27.92 down
0.42

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

DB 2017 Rank:

150

DB 2016 Rank:

148

Change in Rank:

down2

DB 2017 DTF (% points):

27.50

DB 2016 DTF (% points):

27.92

Change in DTF (% points):

down0.42

Indicator Ukraine Europe & Central Asia OECD high income
Recovery rate (cents on the dollar) info_outline 7.5 38.2 73.0
Time (years) info_outline 2.9 2.2 1.7
Cost (% of estate) info_outline 42 13.1 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0 .. ..
Strength of insolvency framework index (0-16) info_outline 7.5 9.9 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 7.5
    Proceeding Under current Ukrainian insolvency legislation (Articles 5-6 of the bankruptcy law), Mirage's management can initiate pre-insolvency restructuring proceedings, but it needs BizBank's consent. BizBank is likely not to agree to such proceedings, because it would be more interested in recovering its loan through foreclosure. Therefore, in order to prevent the foreclosure by BizBank against Mirage's property (and, as a result, sale of Mirage's property piecemeal), Mirage will initiate insolvency proceeding. According to Art. 19 of the bankruptcy law, once Mirage's management initiates insolvency proceeding, all enforcement actions for claims which arose prior to insolvency filing will be stayed for the entire duration of the insolvency proceedings and no penalties will be added to the existing claims. However, it is unlikely that Mirage's solvency can be restored and restructured during the reorganization proceedings. As a result, the commercial court will announce Mirage bankrupt and initiate liquidation proceedings. liquidation (after an attempt at reorganization)
    Outcome As part of the liquidation proceedings, the insolvency administrator will attempt to sell the hotel's assets in order to satisfy the creditors' claims. It is very unlikely that a purchaser can be found willing to buy the hotel as a whole and continue operating it. Therefore, the assets of the hotel will most likely be sold piecemeal. piecemeal sale
    Time (in years) Mirage’s management will initiate insolvency proceedings, which will stay all enforcement actions for claims which arose prior to insolvency filing (Art. 19 of the bankruptcy law). The court will notify the creditors through public announcement. Creditors will file their claims within a 30-day period (Art. 23 of the bankruptcy law). The court will appoint an insolvency administrator who will review the creditors’ claims and submit a report with the results of the review to the court’s approval. After the decision by the court, the insolvency administrator will notify the creditors whether their claims were accepted or rejected and the list of creditors’ claims will be composed. After the list of creditors’ claims is finalized, the first meeting of the creditors will be held, where the creditors will decide whether to liquidate Mirage or to proceed with restructuring proceedings. If the creditors cannot agree on the course of action, the court will make a decision to liquidate the company. After the decision to liquidate the company is made, an evaluation of the assets will be made and the assets will be sold piecemeal. Reorganization procedure is limited to 6 months, but can be extended on the request of the administrator for up to 12 months. The liquidation phase can take about 12 months. 2.9
    Cost (% of estate) Major expenses are comprised of attorneys’ fees (up to 10%), fees of insolvency representative (up to 15%) and other professionals involved in the insolvency proceedings (up to 5%). Auctioneer's fees are up to 10-15% of the value of the sold assets. Court fees and notification costs are around 2%. 42.0
    Answer Score
    Strength of insolvency framework index (0-16) 7.5
    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) 0.5
    Which creditors vote on the proposed reorganization plan? (c) Other 0.5
    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? 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? Yes 1.0

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”.