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Browse Profiles > Iran > Effective Insolvency and Creditor Rights Systems |
| Score | Rank | |
| Standards Compliance Index | 10.00 out of 100 | 73 |
| Business Indicator Index | 3.08 out of 12 | 81 |
Iran|
Effective Insolvency and Creditor Rights Systems
The World Bank's "Doing Business" project website provides an assessment of the economies of 175 countries regarding their performance in a number of categories, including "Closing a Business." Three indicators are used to compare country performance: the average time to bring a business closing to completion (in years), the average cost (as a percentage of the estate), and the average recovery rate, provided in terms of cents on the dollar. For this category, the World Bank ranks Iran as 109th of the 175 countries included in its survey. However, there is insufficient publicly available information regarding Iran's compliance with the Principles and Guidelines for Effective Insolvency and Creditor Rights Systems developed by the World Bank. General Overview According to a 2003 press release issued by the United Nations Information Service, Iran participates in the Working Group on Insolvency Law for the UNCITRAL Model Legislative Provisions on Cross-Border Insolvency. The World Bank's "Doing Business" project website assesses 175 countries on their performance in a number of categories, including "Closing a Business." The World Bank ranks Iran as 109th of the 175 countries included in its survey on this indicator. The website provides three indicators for closing a business: the average time to bring a business closing to completion (in years), the average cost (as a percentage of the estate), and the average recovery rate, provided in terms of cents on the dollar. For Iran, as of 2006, the World Bank reported an average time of 4.5 years, as compared to a regional average of 3.1 years and an OECD average of 1.4 years. Iran's average cost is 9.0% of the estate, as compared to 12.1% regionally and 7.1 for the OECD. Finally, in Iran, the average recovery is $0.197 on the dollar, whereas regionally the rate is 25.7 cents, and for the OECD it is 74 cents. |
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Sources of Assessment World Bank, "Doing Business: Snapshot of Business Environment - Iran," 2006. Available from World Bank website. Accessed on August 15, 2007. (WB 2006) Relevant Organizations Economic Research Forum for the Arab Countries, Iran, and Turkey (ERF) Iran Chamber of Commerce (ICCIM) Islamic Corporation for the Development of the Private Sector (ICD) Islamic Development Bank (ISDB) United Nations Commission on International Trade Law (UNCITRAL) Relevant Legislation/Regulation Commercial Code of Iran, 1932 Supplementary Sources Iran Business Source website. Accessed on August 15, 2007. (IBS website) United Nations Information Service, "UN Commission on International Trade Law to hold Thirty-Sixth Session in Vienna, 30 June - 11 July 2003," June 27, 2003. Available from United Nations Information Service website. Accessed on August 15, 2007. (UNIS 2003) |