The Ministry of Finance with social partners discussed proposed changes to the insolvency framework
On Monday, in the Ministry of Finance Vice-Ministers Neringa Rinkevičiūtė-Laurinaitienė and Lukas Jakubonis met with representatives of the Chamber of Insolvency Administrators, the Lithuanian Banking Association and the Authority of Audit, Accounting, Property Valuation and Insolvency Management to discuss the proposed amendments to the Law on Insolvency of Legal Entities.
The meeting discussed the extension of impartiality requirements for insolvency administrators, additional safeguards for potential conflicts of interest. Also, there were discussions on clearer regulation of transactions with related persons, establishing creditor control mechanisms.
“One of the main proposals is to introduce a restriction on the insolvency administrator to work for more than one legal entity. This would help to reduce the risk of potential bias and conflicts of interest, increase the transparency of the selection and ensure fairer conditions for competition”, Vice-Minister L. Jakubonis stressed.
The meeting also discussed the changes related to the development of sanctions for law infringements, including financial penalties, strengthening the supervision of activities of the Chamber of Insolvency Administrators and reducing the administrative burden by expanding the use of digital solutions.
According to Vice-Minister N. Rinkevičiūtė-Laurinaitienė, the proposed legislative amendments significantly strengthen the protection of creditors and create prerequisites for their more active participation in insolvency proceedings.
Creditors are given the right to control the conclusion of transactions with related persons, thus preventing possible abuses. In addition, the introduction of electronic voting at creditors’ meetings increases the efficiency of the proceedings, and the revision of the procedure for the settlement of claims with collateral holders provides more legal certainty as to the satisfaction of claims.
“In order to create a favourable, stable and predictable environment for creditors, it is necessary to consistently implement SIS recommendations in the decision-making process, which ensures transparency, reliability of legal regulation and protects against unjustified, subjective decisions”, Vice-Minister N. Rinkevičiūtė-Laurinaitienė stressed.
The draft law is currently being considered by the Parliament.
Last updated: 30-04-2026
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