On Tuesday, 7thof May, the Ministry of Justice hosted the meeting of the Insolvency Advisory Council, which was convened by the Minister of Justice Jānis Bordāns for the purpose of discussing the existing issues in the field of insolvency and the expected directions of development.
Jānis Bordāns, the Minister of Justice, stressed during the meeting: “The Ministry of Justice is ready for constructive cooperation on arrangement of insolvency environment. We will take care of ensuring an adequate legal framework, but I would like to emphasise that the problems found in everyday life can be solved already today by improving the practice of institutions and businesses themselves – it is not necessary to wait only for amendments to the law.”
During the meeting representatives of institutions constituting the Council discussed the Insolvency Policy Development Guidelines 2016-2020 (hereinafter – the Guidelines) and the impact of their implementation plan on the achievement of the objectives and results set therein.
The Council discussed also possible solutions and measures to be taken to reduce the risk of non-return of taxes in insolvency proceedings and to prevent companies from allegedly being misled to a state of insolvency in order to avoid paying taxes, and other issues as well.
In relation to the planned action in the future, the meeting participants acknowledged the need to proceed with the Guideline implementation plan in the proposed direction, mainly focusing further on the provision of another option to physical and legal persons.
Among the rest, during the meeting there was discussed the possibility of reviewing the validity period of the Guidelines plan and the deadlines of the measures included in the plan, as well as the performance indicators of the Guidelines and the methodology for achieving these indicators.
In order to ensure the political relevance of the decisions taken in the Insolvency Advisory Council, in February 2016, the Cabinet of Ministers restored its high level of representation. Currently, the Council is composed of ministers of justice, economics, finance, and the interior, the Chief Justice of the Supreme Court, the President of the Latvian Council of Sworn Advocates and the President of the Latvian Council of Bailiffs, as well as the Chairman of the Board of Latvian Certified Insolvency Administrator Association. Also leaders of social partners and non-governmental organizations participate in the work of the advisory council – from the Foreign Investors' Council in Latvia, the Free Trade Union Confederation of Latvia, the Employers' Confederation of Latvia, the Association of Latvian Commercial Banks, the Latvian Association of Borrowers, and the Latvian Chamber of Commerce and Industry.