2024 has been a historically significant year for the Insolvency Control Service. Thanks to systematic work, a professional team and strong cooperation with stakeholders, we have achieved significant improvements in the efficiency, quality and transparency of Latvia's insolvency system. The insolvency indicators for 2024 reflect not only a successful reporting year, but also the results of in-depth systemic changes.
Our goal is to ensure a fair and reliable insolvency environment, where there is a common understanding of insolvency as a fair second chance tool for Latvian residents and entrepreneurs. INESE ŠTEINA, Director of the Insolvency Control Service
By exercising supervision, the Insolvency Control Service purposefully protects the interests of creditors by assessing the legality of administrators' actions, identifying violations and preventing unfair practices. As part of our inspections, we have supervised processes in which the total amount of recognised claims of creditors reached 55.6 million euro, confirming the essential role of supervision in protecting the interests of the economy and society.
Last year, the effectiveness of supervision increased significantly — violations in the activities of administrators were detected in 19% of cases, which is five percentage points less than in 2023. A risk-based approach and the “Advise first” principle have reduced the need for formal sanctions while achieving a high level of compliance. It is important for us to be not only supervisory but also a supportive authority — and this balance is reflected in the results.
The service's work in the area of public financial protection is particularly noteworthy. In 2024, more than 2 million euro was paid out from the Employee claims guarantee fund to satisfy the claims of 940 employees – the largest amount of support in the last ten years.
The average duration of insolvency proceedings in Latvia has decreased to 1.8 years, while the ratio of insolvency costs has fallen to 0.37 euro per euro recovered, reaching its lowest level since 2016. Meanwhile, the recovery rate for creditors has increased to 0.67 euro. These figures confirm that insolvency proceedings are increasingly serving to stabilize the business environment and strengthen public confidence.
This achievement would not have been possible without the outstanding work of the team and strong partnerships. I am grateful to every employee of the Insolvency Control Service for their knowledge, precision and dedicated work – your professionalism, balanced approach and willingness to cooperate are essential for the stability and development of the system. Sincere thanks also go to the Ministry of Justice, non-governmental organisations, Judicial Power, and all cooperation partners who work with us on a daily basis to build this system.
Looking ahead to 2025, the Insolvency Control Service will continue to strengthen the supervisory system, introduce digital solutions and ensure even more efficient and convenient access to services. Our goal is to be a modern, professional and open institution that serves as a reliable support for those facing difficulties and as an effective tool for ensuring a sustainable and transparent business environment.
