The Financial Services Commission (FSC) has announced the enactment of the Insolvency and Bankruptcy Act, 2025, a significant reform aimed at modernizing Belize’s financial framework. Effective September 17, the new law replaces the Bankruptcy Act of 1902 and introduces a comprehensive system that addresses insolvency and bankruptcy for individuals, businesses, and financial entities. It emphasizes fairness, transparency, and mechanisms to support economic recovery.
The legislation establishes a regulatory framework for insolvency practitioners under the supervision of the FSC, setting professional standards and providing oversight. It modernizes liquidation procedures to safeguard the interests of both creditors and debtors while introducing rescue and restructuring options to help viable businesses continue operating. A simplified regime for micro, small, and medium-sized enterprises (MSMEs) is included to provide easier access to debt relief and promote business continuity. The Act also incorporates netting provisions to strengthen financial contract management and reduce systemic risks.
Implementation will be phased from September 2025 through October 2026. The early stages will introduce foundational provisions and institutional infrastructure, followed by business and personal insolvency measures, with cross-border cooperation provisions rolled out in subsequent phases. Belize’s commitment to aligning with international best practices was further underscored by the FSC’s recent acceptance into the International Association of Insurance Supervisors (IAIS), not the International Association of Insolvency Regulators.
Throughout the transition, the FSC will engage stakeholders through consultations, training programs, and public awareness campaigns. The reform is expected to enhance creditor protection while supporting economic recovery and investor confidence within Belize and the wider Caribbean region.
For more information, visit www.belizefsc.org.bz, email c[email protected], or call +501-822-3800.
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