The Financial Services Commission (FSC) says the Insolvency and Bankruptcy Act, 2025 has been enacted repealing and replacing the Bankruptcy Act.
“This landmark legislation modernizes Belize’s insolvency framework and represents a significant step toward strengthening the country’s financial and economic resilience,” the FSC said in a statement, adding that enacted on August 1, 1902 and last amended in 1998, the former Bankruptcy Act addressed mainly individual cases and provided limited options for business recovery or restructuring.
“The new Insolvency and Bankruptcy Act, 2025 establishes a comprehensive, modern regime for both individual and corporate insolvency, ensuring fairness, transparency, and alignment with international best practices,” the FSC said.
“The enactment of the Insolvency and Bankruptcy Act, 2025 reflects Belize’s commitment to a fair, transparent, and modern insolvency system, balancing creditor protection with opportunities for business recovery, providing targeted relief for MSMEs (Micro, Small, and Medium Enterprises), promoting responsible lending, and enhancing confidence in the national and international financial system.”
The FSC, which was formally accepted as a member of the International Association of Insolvency Regulators (IAIR) inJune this year, said with the enactment of “this comprehensive and forward-looking framework, Belize now stands at the forefront of insolvency and bankruptcy reform in the Caribbean, setting a benchmark for the region”.
It said that it will collaborate with stakeholders to conduct consultations ahead of each commencement phase, develop supporting regulations and guidance documents and lead public-awareness and training initiatives to ensure smooth adoption.
According to the FSC, the key features of the new legislation allows for regulatory oversight, as well as clear procedures that protects the interests of creditors and debtors alike.
It said tools to help viable businesses recover and preserve jobs as well as a streamlined restructuring and debt-relief framework tailored to the needs of micro, small, and medium-sized enterprises, supporting business continuity and employment are also among the features.
The FSC said that as the regulator of Belize’s non-bank financial sector, it will oversee the licensing and supervision of insolvency practitioners, ensuring adherence to international standards and safeguarding the interests of all stakeholders.
It said that the new legislation will be implementation in five phases to ensure an orderly transition between September 2025 and October 2026, allowing time for adaptation and stakeholder engagement (CMC)
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