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.

On 16 June 2023, a working meeting was held at the Holiday Inn Hotel organized by the Ministry of Environment and Agriculture and the Remission Center for Sustainable Development. The purpose is to discuss concepts prepared for the Green Climate Fund (GCF) within the building sector in Georgia, specifically for the energy-efficient rehabilitation of public buildings.

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.

Reaching European and international standards of insolvency proceedings is considered one of the most important priorities of the Georgian authorities and its international partners for creating enabling business environment and fostering sustainable growth and job creation in the country.

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.