On November 11, the Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to the Code of Ukraine on Bankruptcy Procedures and Certain Other Legislative Acts of Ukraine Regarding Simplified Bankruptcy (Insolvency) Proceedings for Micro- and Small Enterprises and Specific Features of Applying Bankruptcy Procedures to State-Owned Enterprises and/or Business Companies Subject to Privatization Decisions” (Reg. No.15024).
The document provides for the introduction of a dedicated simplified bankruptcy mechanism for micro- and small enterprises, tailored to their financial and organizational capabilities.
Implementation of the proposed amendments will allow small and micro-businesses to settle debts faster and at lower costs, undergo financial restructuring, or wind up business operations in an orderly manner.
At the same time, simplified procedures will create opportunities for launching a new business and returning entrepreneurs to economic activity. For the economy as a whole, this will facilitate the reintegration of assets and resources into economic circulation, enhance payment discipline, and increase transparency in economic relations.
The draft law is a component of Ukraine’s EU integration reforms. Its provisions are grounded in the principles of EU Directive 2019/1023 and are linked to Ukraine’s commitments under the Ukraine Facility program.
A modern bankruptcy system must not only ensure debt resolution but also provide an opportunity to preserve viable businesses, restore economic activity, and create new jobs.
The Committee on Economic Development served as the lead committee for processing the draft law.