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Ease of Doing Business in

Vanuatu

Vanuatu Download Profile (1717.2KB, pdf)
Region East Asia & Pacific
Income Category Lower middle income
Population 264,652
GNI Per Capita (US$) 2,873
City covered Port Vila

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 83 88 up
5
63.66 61.45 down
2.21
Starting a Business 126 147 up
21
81.24 75.51 up
5.73
Dealing with Construction Permits 134 135 up
1
61.91 61.57 up
0.34
Getting Electricity 81 75 down
6
72.00 71.80 up
0.20
Registering Property 81 80 down
1
65.63 65.63
-
Getting Credit 20 29 up
9
75.00 70.00 up
5.00
Protecting Minority Investors 106 129 up
23
50.00 43.33 up
6.67
Paying Taxes 54 51 down
3
80.60 80.60
-
Trading across Borders 145 145
-
56.27 56.27
-
Enforcing Contracts 130 128 down
2
51.13 51.13
-
Resolving Insolvency 93 111 up
18
42.85 38.63 up
4.22

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

DB 2017 Rank:

93

DB 2016 Rank:

111

Change in Rank:

up18

DB 2017 DTF (% points):

42.85

DB 2016 DTF (% points):

38.63

Change in DTF (% points):

up4.22

Indicator Vanuatu East Asia & Pacific OECD high income
Recovery rate (cents on the dollar) info_outline 44.8 33.9 73.0
Time (years) info_outline 2.6 2.6 1.7
Cost (% of estate) info_outline 38 20.6 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 .. ..
Strength of insolvency framework index (0-16) info_outline 6 7.1 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 44.8
    Proceeding After Mirage's default, BizBank would file an application to appoint a receiver to the Supreme Court as the debenture holder. The court would then appoint an official receiver according to Part VII of the Companies (Insolvency and Receivership) Act No. 3 of 2013). The appointed receiver would collect statement of affairs, finalize creditors' claims, and try to sell Mirage's business as a going concern. Sale proceeds will be paid to Mirage then. receivership
    Outcome The hotel will continue operating as a going concern after the appointed receiver sells Mirage's business as a going concern to a third party. going concern
    Time (in years) The receivership procedure would approximately take about 31 months until BizBank is repaid some or all of the money owed to it. 2.6
    Cost (% of estate) The costs associated with the case would amount to approximately 38% of the value of the debtor's estate. Cost incurred during the entire insolvency process mainly include attorneys’ fees (13%), receiver’s fees (20%) and fees of accountants, assessors, inspectors and other professionals (5%). 38.0
    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”.