Public views sought on bankruptcy system

Public views sought on bankruptcy system
Updated 17 October 2016

Public views sought on bankruptcy system

Public views sought on bankruptcy system

RIYADH: The Ministry of Commerce and Investment has sought the opinion of private and public sector enterprises on the implementation of its bankruptcy system.
The ministry on Thursday morning held a workshop attended by a group of specialists and representatives of government agencies to introduce the bankruptcy system, which is a part of the ministry’s plan to modernize the systems and laws governing trade and investment sector as part of the initiatives of the National Transformation Program 2020 and to achieve the objectives of Vision 2030.
The workshop aimed to inform the representatives of government agencies and specialists on the bankruptcy system and seek their opinion and suggestions, and help define the project materials and its goals. It also aimed to encourage local and foreign investors to invest in the Saudi market and enhance the confidence in credit and financial transactions.
The workshop started with a detailed visual presentation of the bankruptcy system project and its general objectives and procedures, especially the preventive settlement, financial reorganization conduction, liquidation, the procedures for small debtors, performed administrative liquidation, in addition to the project chapters.
The workshop witnessed a healthy participation from attendees, who enriched the meeting with their suggestions and opinions about the project.
In a statement to the press, General Supervisor of the Agency of Technical Affairs at the Ministry of Trade and Investment Bader Al-Haddab explained that the system’s project aims to enhance the economy by enabling defaulter projects to reconsider the situation and work to overcome the financial difficulties so that they can continue its practice, or choose liquidation. "This suggestion will preserve the rights of debtors and other stakeholders to enhance confidence in business and financial transactions.”
The workshop was attended by representatives of the ministries of Finance, Justice, Energy, Industry and Mineral Resources, Economy and Planning, Environment, Water and Agriculture, Culture and Information, the Bureau of Ombudsmen, SAMA, the Capital Market Authority, the General Authority for Investment and Organization for Standardization Metrology and Quality, and the Saudi Commission for Accredited Evaluators.
The bankruptcy system project had gone through many stages, one of which is cooperation with one of the specialized offices in this field, according to a specific methodology adopted to monitor the needs of traders and investors in the Kingdom, and to analyze financial difficulties, along with studying the best international practices in the field of bankruptcy, and after that, asking for public opinions and suggestions.
Maher Othman, the bankruptcy system project manager, explained that the bankruptcy system project has 320 articles with details about bankruptcy procedures. "This system gives priority to preventive settlement and financial reorganization, which addresses difficulties that debtors face and enables them to resume the practice of trade and economics as soon as possible, and to raise the proportion of debt payments to support viable projects, in case of being exposed to a financial defaulter in a way that will safeguard the rights of debtors without overlooking the economically valuables and invaluables.”
Othman said the project took into account the development of small and medium enterprises through simplified provisions of their financial difficulties to encourage the initiative and engage in the trade and economic activities.