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Before the current insolvency reform, Georgia’s legislative framework regulating insolvency proceedings fell short of meeting international standards – it did not meet either creditors’ or debtors’ needs and failed to offer incentives to the insolvent companies to choose rehabilitation as their optimal strategy for resolving financial difficulties.
![](https://iset-pi.ge/site_images/date.png)
Prior to the current Insolvency Reform, Georgia’s legislative framework regulating insolvency proceedings fell short of meeting international standards – it did not meet neither creditors’ nor debtors’ needs and failed to offer incentives to the insolvent companies to choose rehabilitation as their optimal strategy for resolving financial difficulties.
![](https://iset-pi.ge/site_images/date.png)
Georgia’s new insolvency law – the Law of Georgia on rehabilitation and the collective satisfaction of creditors’ claims – became effective on 1 April 2021. Under which, if a business operating in Georgia has reached a low ebb and is no longer able to meet its financial obligations, it has the opportunity to regulate relations with creditors based on new legislative instruments – effectively, it is able to rehabilitate and return to the market in a viable manner, or, if necessary, it might declare bankruptcy and exit the market.
![](https://iset-pi.ge/site_images/date.png)
Prior to the current insolvency reform, Georgia’s legislative framework regulating insolvency proceedings fell short of meeting international standards – it did not meet neither creditors’ nor debtors’ needs and failed to offer incentives to the insolvent companies to choose rehabilitation as their optimal strategy for resolving financial difficulties.
![](https://iset-pi.ge/site_images/date.png)
Under ISET affiliation Luc Leruth, the Lead Economist in the Policy Institute’s Governance and Social Policy Research Center, has recently been appointed a co-editor of The Open-Access, Open-Assessment Journal Economics. As a new form of the academic journal, the publication incorporates a large research community with an open and innovative peer review process; where critically the research is seen as a cooperative enterprise between authors, editors, referees, and readers.