Technical Note : Recommendations for Implementation of the EU Restructuring Directive 2019/2023 in Moldova

Overview & Synopsis

This technical note, prepared for Moldova’s Ministry of Economic Development and Digitalization (MOEDD), assesses the Moldovan Insolvency Law (MIL) against the European Union (EU) Preventive Restructuring Directive (2019/1023) and provides a road map to bring Moldovan legislation in line with the standards in the Directive. Its ultimate objective is to inform the Moldovan authorities’ views on the different options available to successfully complete the transposition process. The note finds that the existing Accelerated Restructuring Procedure (ARP) is already compliant with various requirements of the EU Directive as it can be considered a preventive procedure. However, a closer analysis of the ARP provisions shows critical gaps that require legislative improvement, including key areas such as creditor class formation and mechanisms to overcome shareholder holdout. To illustrate these gaps and guide the authorities throughout the legislative process, this note includes an article-by-article analysis of the standards set in the EU Directive against the provisions in the MIL currently in force. The note recommends a phased approach: short-term legislative amendments to the ARP followed by medium- to long-term measures to establish early warning systems and deliver sustained judicial training. Successful transposition of the Directive will require relying on a sound institutional system, including specialized judicial capacity and improved insolvency data collection to monitor outcomes and guide practice. When adopted, transposition of the EU Directive is expected to lead to earlier, more efficient restructuring for viable debtors, better value preservation and increased recoveries for creditors, and reduced case duration and clearer standards for courts. Ultimately, the reform aims to develop a rescue culture in Moldova that preserves jobs, maximizes going-concern value, and enhances overall system efficiency and confidence.