Ministry seeks suggestions for draft bankruptcy law

People’s views and suggestions are sought for the draft bankruptcy law which is being framed by the Ministry of Commerce and Industry.
Based on transparency and giving the public an opportunity to participate, the ministry has invited those interested to express their views and suggestions on the draft of the new general policies of bankruptcy law, through its website, and submit them before May 5.
The new draft bankruptcy law has been drawn up based on different aspects of the local environment and statutory and economic regulations to achieve the desired goals in general, taking into consideration a number of advanced international practices in this field.
The ministry points out that the new draft law seeks to create an environment that contributes toward expanding the private investment base, in terms of number and volume, through the preservation of private economic value to be added to the overall economy.
The new draft law would give priority to reconciliation procedures, or reorganizing the debtor’s situation so that there would still be a real and true chance to re-establish his trade activity to a level where he could add value to the overall economy and fulfill obligations toward his creditors.
The new draft law also aims at liquidating the assets of commercial institutions which may fail to regain their trade activity in a regular and fast way.
MCI also stressed the importance of the new draft bankruptcy law for small and medium enterprises (SMEs) which will contain a number of provisions to encourage entrepreneurs to start up their business. These provisions would include simplified and swift remedial action to deal with SMEs in case of financial troubles, in addition to provisions that might help stimulate the private sector to finance such enterprises.
The ministry pointed out that this new draft law would contribute to raising the contribution of the private sector, especially SMEs, to stimulate economic development in general, and industry and trade in particular.