MAIN ACTIVITIES
OF THE
INSOLVENCY SERVICE
2016
/DEPARTMENT OF REGISTRAR
OF COMPANIES
AND OFFICIAL RECEIVER
INSOLVENCY SERVICE / BANKRUPTCIES AND LIQUIDATIONS SECTION
The main actions and development of the Insolvency service / Bankruptcies and Liquidations Section in 2016 were the following:
ü Mapping and modeling of Insolvency Service procedures.
ü Administration of Personal Repayment Plans, Debt Relief Orders and execution of Bankruptcy, Liquidation, Confiscation and Semi-Governmental Organisation Orders.
ü Preparation of annual reports regarding the progress in the implementation of the provisions of the Insolvency of Natural Persons (Personal Repayment Schemes and Debt Relief Orders) Law of 2015.
ü Preparation of reports for our international partners regarding the progress in the implementation of the Insolvency Regime.
ü Compliance with the procedure for the issuance of guidelines regarding the Reasonable Living Expenses of debtors.
ü Establishment of a “Core learning team” for personnel.
ü Organisation and creation of the “Cooperation Protocol” with all stakeholders. The Insolvency Service developed a “Contact Details Cooperation Protocol” with all stakeholders involved for the effective enforcement of the Insolvency Regime, as well as for Bankruptcies and Liquidations issues.
ü Participation in consultations, working groups and conferences of the European Commission and the International Monetary Fund.
ü Preparation and maintenance of statistical data.
ü Monitoring and evaluating the effective functioning of the Insolvency Regime.
ü Involvement of the Insolvency Service in developing the “Cyprus Land Development Cooperation Subsidy Scheme” and contributed to its promotion and training Insolvency Practitioners.
ü Promotion of the business insolvency mechanisms in cooperation with various stakeholders.
ü Promotion of the Insolvency Service information guides/ booklets via the Citizens Service Centres of Cyprus Post and the Insolvency Service website.
ü Continuous update of the Insolvency Service website for informing citizens and professionals about the tools provided by the Insolvency Regime.
ü Providing administrative and secretarial support to the Insolvency Practitioners Examination Committee.
ü Promotion of restructuring procedures in collaboration with Central Bank of Cyprus (CBC) and development of the Interactive Tool for debtors.
ü Processing of a «Citizens/Debtors Guide», which will include all available procedures/tools/mechanisms for the restructuring of debts (the Arrears Management Directive of the Central Bank, the Mediation procedure by the Financial Ombudsman, Personal Repayment Plans). This Guide will also include information on the procedures of the Foreclosure Law.
ü Keeping Public Registers for Personal Repayment Plans, Debt Relief Orders, Insolvency Practitioners and maintaining a Bankruptcies and Liquidations Registry.
ü Alignment of administrative procedures on Personal Repayment Plans, Debt Relief Orders, Bankruptcies and Liquidations.
ü Providing technical support to the personnel of the Insolvency Service by experts of the Insolvency Service of Ireland and Money Advice and Budgeting Service (MABS).
ü Preparation of an informative guide in relation to Examinership for viable companies in distress and preparation of a second informative guide on the Debt Relief Order.
ü Participation and involvement of the Insolvency Service on the configuration of the proposed EC Directive on preventive restructuring frameworks, by expressing its views and opinion.
ü Participation and involvement of the Insolvency Service on providing information for the Doing Business report of the World Bank.
ü Development of information technology systems for Debt Relief Order, Personal Repayment Plans and Examinership, which are interconnected with the Courts.
ü Discharge from bankruptcy of 8960 bankrupts in total.
ü Assessment of current IT infrastructure for the development of IT systems which shall provide the interconnection of Insolvency Registers with other Member States, in accordance with the Regulation on Insolvency Proceedings EC/848/2015.
ü Processing and preparing the standard forms in accordance with the Regulation on Insolvency Proceedings EC/848/2015.
ü Processing and preparing the answers to the questionnaire on the various insolvency procedures, for the purpose of uploading these to the European E-Justice Portal, as per the provisions of the Regulation on Insolvency Proceedings EC/848/2015.
ü Processing of Procedural Regulations on the Liquidation of Companies in collaboration with external experts.
ü Interconnection of the Insolvency Service with the “Data Service Provider” to conduct research.
ü Licensing of Insolvency Practitioners.
ü Promotion of the interconnection of the Insolvency Service with the Government Data Warehouse, to enable more effective processing of researches conducted by the Insolvency Service.
INSOLVENCY SERVICE/BANKRUPTCIES AND LIQUIDATIONS SECTION
Aim: The effective and proper administration of Personal Repayment Plans.
The Bankruptcies and Liquidations Section has been appointed by the Minister of Energy, Commerce, Industry and Tourism (henceforth MECIT), to perform the duties of the Insolvency Service resulting from the Insolvency Regime Legislation, which was adopted on the 18th of April 2015 and enforced on the 7th of May 2015, the date that was published in the Official Gazette of the Republic.
The Insolvency Service shall evolve to an independent department/ section, under MECIT.
The aim of the Bankruptcies and Liquidations Section is the effective and undisrupted implementation of the procedures resulting from the Insolvency Regime legislations, thus contributing in resolving economic difficulties faced by civilians and businesses. The ulterior aim is reducing non-performing loans, sustaining employment, encouraging economic activity and maintaining social cohesion.
By the Legal and Regulatory Insolvency Regime the following are accomplished:
· The survival and second chance culture, as opposed to bankruptcy and liquidation.
· The enactment of a mechanism for the restructuring of corporate debts, with the aim of rescuing and restoring business activity, and restructuring and sustaining viable businesses.
· The viability of natural and legal persons by providing appropriate tools to enable them to restructure their debts.
· A more favorable treatment of guarantors.
ACTIONS/ACTIVITIES:
ACTIVITY 1: Evolvement of the Bankruptcies and Liquidations Section to Insolvency Service.
· Separation of the Bankruptcies and Companies Liquidations Section from the Department of the Registrar of Companies and Official Receiver, as an independent section under MECIT and its evolvement to Insolvency Department/ Service.
· The evolution of the Bankruptcies and Liquidations Section to Insolvency Department /Service requires adequate staffing, with personnel suitable to respond to the implementation of the Insolvency Regime, designing appropriate infrastructure in networks and information systems, as well as educating and training Insolvency Practitioners, who can respond and contribute with their services in reducing non-performing loans.
· Monitoring and enforcing the “Action Plan for the implementation of the Insolvency Regime”.
· Assessing the effective implementation of the Insolvency Regime.
· Promoting and effectively implementing the mechanisms for the restructuring of debts of natural and legal persons, instead of bankruptcy, liquidation and the appointment of Receiver/Manager.
· Modernizing the procedure for the restructuring of debts for natural persons and viable companies.
· E - Governess functioning of the Insolvency Service.
· Appointing of a consultant for recording the ΙΤ requirements/specifications of the Insolvency Service and public tendering for introducing a new integrated information system for the Insolvency Service.
· Developing an integrated IT system.
· Interconnection of the Service’s Registers with all stakeholders and the central registry of member states of the European Union, in accordance with the European Regulation on Insolvency Proceedings.
· Providing equipment and upgrading IT systems, providing and installing access control and closed circuit surveillance systems.
· Rendering legal services for establishing Procedural Rules and amending legislation.
· Maintaining Public Registry for Insolvency Practitioners, Personal Repayment Plans (PRP) and Debt Relief Orders (DRO).
· Organising and developing a Cooperation Protocol with all stakeholders involved.
· Monitoring the profession of Insolvency Practitioner.
· Participating in consultations, working groups and conferences of the European Commission and the International Monetary Fund.
· Continuous training of staff.
· Redesigning Processes based on measuring time.
· Drafting Annual Reports.
· Developing statistical data.
ACTIVITY 2: Implementing appropriate insolvency procedures for Bankruptcies and Liquidations.
· Modernizing the Bankruptcy and liquidation of companies’ procedures.
· Effectively enforcing bankruptcy and company liquidation orders.
· Developing statistical data.
ACTIVITY 3: Implementing effective insolvency procedures for Personal Insolvency Plans.
· Modernizing the procedure for restructuring personal debts and small businesses.
· Effectively administrating Personal Repayment Plans for insolvent natural persons, that can become solvent again.
· Effectively administrating discharge from debt for persons with no substantial disposable income, nor any fundamental assets, and with a small debt, via the Debt Relief Order (DRO).
· Developing statistical data.
NOTE: In addition, please note that in 2016 the Insolvency Service has proceeded in 9 sales of immovable property and 24 sales of cars / machinery.