ISET Policy Institute started working on the Regulatory Impact Assessment (RIA) on the selected topics under the Draft Law on Insolvency Proceedings. In this project, ISET is partnering with the Berlin Economist, the German consulting group.

The project aims to conduct an RIA in light of 2030 Agenda requirements on the following important topics under the draft law on insolvency proceedings:

1. establishment of a new profession of Insolvency Practitioners, their rights, duties, and authorization to take insolvency appointments;
2. rights of the creditors under insolvency regimes (including the ranking of creditors and pertaining risks);
3. assessment of time limits and deadlines prescribed by the draft law;
4. consumer bankruptcy;
5. risks of corruption in certain fields of regulation under the draft law and the impact of the new draft on improving the standing of Georgia in the IFC/WB Survey “Doing Business Report” under the Resolving Insolvency index.

In the frame of the project ISET Policy Institute plans to conduct meaningful stakeholder consultations among a broad group of stakeholders. We would be happy to consult with you if you want to share your experience with the acting Law on Insolvency Proceedings or existing practice in this field. If interested, please contact us.

The project is supported by the GIZ Program “Legal Approximation towards European Standards in South Caucasus” as part of the GIZ’s Regional Office in the South Caucasus.

The evaluations conducted so far show that on the one hand, Georgia suffers from the lack of applicable insolvency law to rescue an enterprise and on the other hand there is an absence of qualified human resources to apply the insolvency law.

Therefore, GIZ in close cooperation with the Ministry of Justice of Georgia and the National Bureau of Enforcement established a working group that started to work on the draft law on insolvency proceedings. The working group is composed of the representatives of the Ministry of Justice of Georgia, the National Bureau of Enforcement, the Ministry of Economy and Sustainable Development of Georgia, and the Ministry of Finance of Georgia, four prominent lawyers with extensive experience in handling insolvency cases, representative of the Investors Council and German experts, who have provided recommendations for a policy change and a reform proposal.