Press release Jaunumi

Addressing the key issue of improving the insolvency framework and tackling debt restructuring the Ministry of Justice of the Republic of Latvia has completed an 18-month project financed by the European Union through the Structural Reform Support Programme and implemented by the European Bank for Reconstruction and Development, in cooperation with the European Commission (DG REFORM), and with the support of a consortium of financial and legal experts led by PricewaterhouseCoopers Latvia.

The project evaluated Latvia’s existing debt restructuring environment and identified areas for improvement (report is available here). Over 500 stakeholders were trained on practical issues related to debt restructuring and cross-border insolvency proceedings. A number of persons will act as future trainers to continue to raise awareness and knowledge in this critical area.

A key outcome of the project are new Guidelines on Identification and Management of Financial Difficulties issued by the Ministry of Justice. These are an information tool to help owners and managers of small and medium-sized enterprises identify and address financial difficulties in a practical and timely manner.

The guidelines are available on the Ministry of Justice website (here) and part of a new approach among EU member states to encourage businesses to act early to tackle any financial difficulties and improve their prospects for successful turnaround.

The project builds on the success of previous reforms to strengthen the profession of insolvency practitioners. Other project outcomes include increased awareness and understanding of the role of debt restructuring and administration of cross-border insolvency proceedings.

The project was formally concluded at the end of March and a recording of the closing event is available here (in Latvian).