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Ahram Online: Egypt parliament preliminarily approves country's first bankruptcy law

The law is expected to improve Egypt's ranking in the World Bank's Doing Business report.
10.01.18 | Interesting article at Ahram Online

The Egyptian parliament’s General Assembly gave preliminary approval on Tuesday to a law governing debt restructuring, preventive composition and bankruptcy, MP Haitham El-Hariri told Ahram Online.

The law is expected to improve Egypt’s ranking in the World Bank’s Doing Business report, Investment and International Cooperation Minister Sahar Nasr told MPs on Tuesday.

The legislation guarantees protection for financially struggling investors, allowing debtors to file for bankruptcy.

Without a law to govern it, insolvency cases had previously been evaluated by the courts, with businessmen facing prison for not paying their debts.

The new law would put in place a mediating system to avoid referring cases to criminal proceedings.

The law also simplifies procedures and guarantees safe exit for companies that go bankrupt, with a possibility for integrating businesses back into the market through debt restructuring.