After two years of lockdowns, Poland, like many other countries, is feeling the significant economic impact of Covid-19.
With the conflict in Ukraine, there is a risk that this economic turbulence will be magnified. Signs of uncertain times ahead include rising inflation and climbing interest rates. These are problems which will take time and effort to resolve. The government and parliament are proposing changes to legislation aimed at helping companies and entrepreneurs to conduct business “as usual” and to take the edge off the harsh realities.
Recent key changes
- Changes implemented to the Restructuring Law, effective from 1 December 2021 will be crucial to entrepreneurs' efforts to save their companies in the wake of crippling debts. The changes allow debtors to fulfil their payment obligations through composition arrangements with creditors. These changes are likely to increase the success rate of restructurings and the survival of indebted businesses.
- Another significant change is the establishment of the National Debtors’ Register which is a publicly available information system and a new way for court-appointed administrators to remotely exchange documents with the court. This has improved access to information and is aimed at reducing the length of restructuring proceedings, which may be crucial for debtors and creditors alike.
It is hoped that these steps to mitigate some of the damage caused by recent events will help businesses withstand their problems, without putting a strain on the economy.
Find out more
To discuss the changes outlined in this article in more detail, please contact a member of our Restructuring & Insolvency team.
