Insolvency Reform Harmonized with EU Legislation - Liana Akhobadze

Liana Akhobadze, the Legislative Issues Adviser for the Economic Management Program at USAID, confirmed in a recent appearance on the "Business Partner" show that the nation's insolvency reform is now entirely in alignment with European Union (EU) legislation.

Akhobadze explained that the harmonization process has been ongoing for quite some time. Even though the law became effective in 2020, it is still premature to definitively comment on its impact.

She emphasized the necessity of raising business awareness about the opportunities presented by this law. "We consistently employ different platforms to communicate the significance of this law for businesses," she said.

In an effort to ensure widespread understanding and implementation, Akhobadze and her team routinely conduct meetings with businesses across the nation, both in the capital and regional areas. She revealed plans for a meeting in Akhaltsikhe scheduled later this month.

"These initiatives aim to not only sustain ongoing business operations but also stimulate further business activity," Akhobadze added.

She noted that one of the primary objectives of the reform is to achieve collective satisfaction among creditors. However, she stressed that this should not be pursued at the debtor's expense and called for a balanced approach in the process.

On a related note, Georgia recently hosted its inaugural International Insolvency Conference, as part of USAID's economic governance program. This event marked a milestone for the region, welcoming around ten international guests to the country and offering a platform to share and learn from best practices globally.