A new bankruptcy law in Croatia.
Hungary is going to improve tourism cooperation with China.
Latvia is working on improvements for flexible business environment
A new bankruptcy law in Croatia. Starting from 2nd September, the companies that assets are blocked for more than 120 days are automatically the subject of the bankruptcy procedure. That means approx. 19,646 companies with 10,139 employees would go bankrupt immediately. The Croatian Financial Agency (FINA). Is the one that pushes companies into bankruptcy. It is said that the new law would ease the insolvency procedure and make it more effective. It would also secure the interests of Croatian workers whose salaries are not paid on time. >>Read more
And by the way – according to the Coface Insolvency Monitor for Central and Eastern Europe there was a slight drop in companies insolvencies during 2014. The average fall was -0,5%. Coface also forecasts the further fall of insolvencies. The result for 2015 should be –6%. “Companies in Central and Eastern Europe have experienced turbulent times over the last few years.
Economies were challenged by the contraction of private consumption, due to rising unemployment and the ongoing deleveraging process” – says the report. Coface also mentions the double dip recession of the Eurozone. Let us remember that in 2013 the number of bankruptcies thorough CEE countries was up 7%. But, as we read, the problem is behind us. The best results are in: Serbia (-43,8%), Romania (-27,9%), Bulgaria (-22,8%), Croatia (-14,3%) and Poland (-6,8%).
In the meantime, the number of bankruptcies raised in Slovenia (+44 %), Hungary (+29,4 %), Estonia (+1,8%), Latvia (+4,3%), Lithuania (+5,4%), Czech Republic (+15,4%), Slovakia (+3%) and the Ukraine (+5,1%).
CEE and China
The 16th Forum of Central and Eastern European countries and China is coming. It’s going to take place in Bled, Slovenia. Hungarian officials are very happy about it, especially Minister of Economy Mihaly Varga who says that he’s going to improve tourism cooperation with China. In the meantime the Hungarian Prime Minister Viktor Orban fights within the EU against the immigrants (he has just built anti-immigrant fence along the Hungarian boarder).
Latvia, which is one of the most competitive countries in the world with a flexible business environment (in Doing Business report it was 23rd among 189 other states), is working on further improvements. They want to reduce the time and costs needed for various registrations, increase the protection of investors, improve tax administration and judicial system (in a way to shorten the duration of civil and commercial processes). Also a big challenge is gas and electrical power interconnection and the infrastructure of its ports. They’d like to match the expectations drafted by the World Bank experts in 2013.