Kulyniak Yu., Assistant of the Department of Accounting and Analysis, Lviv Polytechnic National University, Lviv, Ukraine

ORCID ID: 0000-0003-2683-8103
e-mail: yurii.i.kulyniak@lpnu.ua

Kindratska H., PhD (Economics), Associate Professor, Associate Professor of the Department of Accounting and Analysis, Lviv Polytechnic National University, Lviv, Ukraine

ORCID ID: 0000-0002-1825-7352
e-mail: halyna.i.kindratska@lpnu.ua

Diagnostics of the State and Perspectives of Resolving Insolvency of Ukrainian Enterprises based on the Results of International Comparisons

Abstract. Introduction. Ukraine is making an effort to improve their positions in the rating «Doing Business», however, for most indicators, the results are much lower than in Europe and Central Asia. One of these troubling indicators is the «resolving insolvency».

Purpose. The purpose of the study is to conduct diagnostics of the business environment of Ukraine according to the results of international comparisons and system of resolving insolvency of Ukrainian enterprises. Finding the ways of the improvement of their efficiency has been done, taking into account best practices of foreign countries.

Results. The place of Ukraine in the ranking «Doing Business» in the last 10 years was analyzed and a positive trend of general grade of the ease of doing business has been confirmed. Although the state of resolving insolvency proceedings, which affect the level of recovery rate for creditors and effectiveness of the regulatory framework complicate the raising of the Ukraine’s position in ranking. A comparative analysis of the recovery rate for creditors in Ukraine and Eastern Europe (Bulgaria, Belarus, Moldova, Poland, Romania, Slovakia, Hungary and the Czech Republic) have been done. Ukraine is among these countries occupy the last places at a cost required to recover debt and time required to recover debt. The low efficiency of the regulatory framework of Ukraine that regulates the liquidation and reorganization of enterprises was discovered. The attempt to reform it did not affect the change of the strength of insolvency framework index during last years (this value is unchanged from 2014). The approaches to the construction of the algorithm for determining the position of the country in the ranking «Doing Business» by the indicator «resolving insolvency» have been generalized. The change of the Ukraine’s position was predicted in case to improve the recovery rate for creditors and increase efficiency of the regulatory framework.

Conclusions. The possible results of the impact of improving the efficiency of the regulatory framework on the resolution of insolvency has been assessed, in particular through the implementation of measures which were provided in the Sustainable Development Strategy «Ukraine – 2020» and the Ukrainian Code of Bankruptcy Procedures. The main directions of transformation of business environment in Ukraine have been determined, in particular in the field of resolving insolvency of enterprises, which will help to increase the position of Ukraine and improve the investment climate.

Keywords: resolving insolvency; recovery rate for creditors; time required to recover debt; cost required to recover debt; strength of insolvency framework index; outcome for the business; Doing Business.

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