Isn’t €1 Billion A Year Too High A Cost For Malfunctioning Insolvency Process In Latvia?

On October 15, 2015, at the Outlook seminar experts, decision makers and business representatives in Riga met to discuss the insolvency process and its impact on Latvia’s business and investment climate, The Baltic Course reported. A broad coalition of organizations – the American and Norwegian Chambers of Commerce in Latvia, the Foreign Investors’ Council in Latvia (FICIL) and the Latvian Chamber of Commerce and Industry – gathered to reinforce the necessity to continue reforming Latvia’s insolvency system in order to provide confidence and security of both foreign and local investments. Inefficient insolvency process has a negative impact on the economy causing losses to the businesses, employees and the public sector. The conference was held as a follow-up from the previous Outlook held on November 28, 2013 when it was agreed that it is necessary to improve the application of the law of insolvency, to prevent abuse of insolvency proceedings and impose stricter management tools to the parties involved in supervision of the insolvency system, reports BC executive director at AmCham Latvia Liga Smildzina-Bertulsone. Over the course of the past two years there have been several attempts to reform the insolvency system. Although the legislation has been amended, difficulties still prevail. As a result the economy is facing tremendous losses. Therefore the business community continues to voice its concerns about the credibility of the insolvency system and to follow closely the pace of reforms in the insolvency system. Read more.