Analytics, Financial Services, Latvia

International Internet Magazine. Baltic States news & analytics Thursday, 24.09.2020, 04:50

Number of insolvency administrators has dropped by nearly 44% since 2017

BC, Riga, 11.02.2020.Print version
Over the past couple of years, the number of insolvency administrators in Latvia has decreased by 43.1 percent, from 317 in 2017 to 175 in 2019, according to information released by the Insolvency Control Service writes LETA.

The information provided by the service shows that out of the 219 candidates who took the insolvency administrator's qualification exam in the past two years, 198 people passed it successfully.

Meanwhile, 93 insolvency administrators either lost their certificates or were dismissed in the two-year period.

Altogether 112 reports were issued in 2018 and 2019 following inspections at the administrators' practices. In 62 cases the reports contained objections, 21 assessments were negative and 17 were positive.

The most commonplace violations found on the part of administrators in 2018 included non-compliance with record-keeping rules, unwarranted recruitment of specialists, inability to substantiate the costs of insolvency processes, as well as the inability to accurately identify and estimate the debtors' assets and liabilities.

Similar violations were found also in 2019, but new ones included a lack of expenditure documents, a failure to take legal action against the defaulting companies' managers, as well as a failure to analyze transactions made with debtors' bank accounts.

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