The Ordinance is adopted on the basis of Art. 761, para. 3 of the Commerce Act and implements the requirements of Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019.

The rules of the Ordinance seek to achieve market stability by providing new opportunities to prevent insolvency. The early warning tools aim to notify businesses (merchants and entrepreneurs within the meaning of the Commerce Act) of their financial situation. It is foreseen that, in case of indications of financial difficulties that may lead to insolvency, businesses will be assisted with guidance, advice or counselling to improve their financial situation and to take preventive action. The principles of swiftness, confidentiality, accessibility, voluntariness and trust shall be respected when applying the tools.

The system of measures under the Ordinance will be administered by the Executive Agency for the Promotion of Small and Medium-Sized Enterprises (“EAPME”), where the following four tools are envisaged:

·       A free online business self-assessment system for the likelihood of insolvency, which will provide an algorithm for calculating indicators of a business’s financial condition and will generate a short report with the results of the assessment together with general recommendations for action;

·       The provision of general guidance and advice by EAPME staff or external contractors on how to identify the likelihood of insolvency and take appropriate preventative measures;

·       Provision of specialised consultancy services in the field of business management, accounting, finance and law by consultants – external experts, registered on the EAPME list, with at least 8 years of experience in the acquired specialty and legal capacity, where required by law;

·       Organising and executing training and support programmes for entrepreneurs aimed at the effective use of early warning tools and preventive enterprise restructuring options.

By virtue of the Ordinance, the EAPME should set up a public electronic information system to provide information on early warning tools for the likelihood of insolvency and on the proceedings and measures available in relation to the restructuring (stabilisation) of enterprises and the repayment of debts.