engleski

Challenges for a Mature Insolvency System in a Transitional Economy : Lessons from Croatia

Being a post-communist, central-eastern economy, Croatia and its insolvency system resembles many transitional countries in the region. In order to achieve a better perspective of the current situation, problems, and their possible solutions, a broad research of the Croatian insolvency system was carried out. Questionnaires were sent out to bankruptcy practitioners, interviews with some of the most experienced experts in the field were performed, and extensive databases have been obtained. The findings show a high level of tolerance of government institutions towards insolvency, making insolvency procedure in practice non-compulsory even though the Corporations law (Article 626) proclaims non-filing as punishable, with the penalties rising up to two years of imprisonment. As the data present, filing for bankruptcy doesn’t necessarily have to be expected even in the case of long-term (over one year) insolvency. This tolerance was present long before the recession and the global crisis of the late 2000s began.

insolvency; bankruptcy; business failure; Croatia; Central Eastern Europe; transition

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