ADB holds Consultations on Bhutan’s New Insolvency Rescue Bill

On 15-17 April 2024, ADB and Bhutan’s Ministry of Finance held stakeholders' consultations on the draft new Insolvency Rescue Bill of Bhutan 2024 in Paro, Bhutan. The objective of the new law is to simplify the current insolvency law, which is seen as complex and impractical particularly for MSMEs and individuals. The new law also aims to build a “rescue culture” by providing options to debtors in distress amidst the current stigma towards bankruptcy. The draft Bill was presented to key stakeholders including the Supreme Court, Office of the Attorney General, Bhutan National Bank, BhutanChamber of Commerce and Industries, and Royal Monetary Authority. The insolvency law reforms is supported under ADB's Law and Policy Reform Program.