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Ease of Doing Business in

Uzbekistan

Uzbekistan Download Profile (1809.3KB, pdf)
Region Europe & Central Asia
Income Category Lower middle income
Population 31,299,500
GNI Per Capita (US$) 2,150
City covered Tashkent

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 87 82 down
5
63.03 62.68 down
0.35
Starting a Business 25 23 down
2
93.93 93.91 up
0.02
Dealing with Construction Permits 147 147
-
59.79 59.58 up
0.21
Getting Electricity 83 78 down
5
71.81 71.32 up
0.49
Registering Property 75 81 up
6
66.23 65.25 up
0.98
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 70 78 up
8
56.67 55.00 up
1.67
Paying Taxes 138 139 up
1
59.06 57.96 up
1.10
Trading across Borders 165 166 up
1
44.31 44.31
-
Enforcing Contracts 38 37 down
1
67.26 67.26
-
Resolving Insolvency 77 72 down
5
46.29 47.24 down
0.95

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

DB 2017 Rank:

77

DB 2016 Rank:

72

Change in Rank:

down5

DB 2017 DTF (% points):

46.29

DB 2016 DTF (% points):

47.24

Change in DTF (% points):

down0.95

Indicator Uzbekistan Europe & Central Asia OECD high income
Recovery rate (cents on the dollar) info_outline 39.5 38.2 73.0
Time (years) info_outline 2 2.2 1.7
Cost (% of estate) info_outline 10 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 8 9.9 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 39.5
    Proceeding Liquidation is the most likely procedure, because there are several creditors involved. Reorganization is not often achieved in Uzbekistan for private companies, it mostly applies to companies with a share of state ownership. liquidation
    Outcome Hotel's assets are likely to be sold piecemeal, because it would be very difficult to find a buyer willing to purchase the entire hotel and continue operating it. piecemeal sale
    Time (in years) After the Bank files the petition for liquidation of the debtor, the court will review the petition and initiate bankruptcy proceedings. The court will also appoint a liquidation manager, who will then take over the company's financials, publish notice of bankruptcy, receive claims from creditors, and try to reach settlements with creditors, whenever possible and prepare register of creditors' claims. The liquidation manager also must prepare an interim balance sheet of the debtor and present it to the creditors, who will have to approve it. The hotel will then go into liquidation. A public auction will be held to sell the assets, after which the creditors will be paid and the company will be liquidated. The longest part of this process will be the time it takes the liquidation manager to take over company's financials and prepare the interim balance sheet. 2.0
    Cost (% of estate) Total cost will be up to 10% of the value of the estate. Remuneration and fees of the liquidation manager – up to 3% of the value of the estate; Attorneys' fees (as attorneys are usually engaged by the liquidation manager to assist with the case) – up to 3% of the value of the estate; Fees of other professionals involved in the insolvency proceedings, such as accountants (as accountants are usually engaged by the liquidation manager to assist with the case) – up to 3% of the value of the estate; Auctioneer’s fees – up to 2% of the value of the estate. 10.0
    Answer Score
    Strength of insolvency framework index (0-16) 8.0
    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? (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? 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? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (b) Yes over ordinary unsecured creditors but not over secured creditors 1.0
    Reorganization proceedings index (0-3) 0.5
    Which creditors vote on the proposed reorganization plan? (a) All creditors 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) 2.0
    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? 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”.