This metric measures the duration, in years, from the commencement of insolvency proceedings in a court to the final resolution of distressed assets. It serves as a critical indicator of the efficiency and effectiveness of a country’s legal and financial systems in managing insolvency cases. A shorter timeframe typically reflects a streamlined judicial process, effective asset recovery mechanisms, and favorable conditions for creditors, enhancing confidence among investors and stakeholders. Conversely, prolonged resolution periods can signify systemic inefficiencies, potential barriers to market entry for new businesses, and an increased likelihood of asset devaluation. Understanding this indicator helps policymakers identify areas for reform and improve overall economic resilience. Source: