New administrators to make bankruptcy procedures easier

TIRANA, Oct. 15 – While business registration and licensing procedures rank Albania among the top performing countries, closing a business or bankruptcy procedures rank Albania among the worst. The Justice Ministry says the licensing of the bankruptcy administrators will facilitate procedures.
“We have decided that through the establishment of the Bankruptcy Supervisory Authority investors will be guaranteed not only when they start a business but even when they decide to close it down,” said Justice Minister Eduard Halimi at the inauguration ceremony of the first bankruptcy administrators who replace economic experts hired from courts or accounting firms. “This is a reform improving business climate and targeting to end prolonged bankruptcy procedures at courts,” said Halimi.
According to data collected by Doing Business 2012, resolving insolvency in Albania takes 2 years on average and costs 10% of the debtor’s estate. The average recovery rate is 40.2 cents on the dollar. Globally, Albania stands at 64 in the ranking of 183 economies on the ease of resolving insolvency.
According to the latest European Commission progress report, business registration and licensing continued to perform well through the established network of one-stop shops. However, no progress was made on reducing the timing and procedures for market exit, which remain slow. During 2011, about 3,900 requests for voluntary business closures were filed with the National Registration Centre (NRC). The structure of the Bankruptcy Supervisory Agency was approved in January 2012. The Agency’s performance remains to be assessed.