Based on transparency and giving a chance for public participation, MCI would like to invite those interested and the public to express their views and suggestions on the new draft of the general policies of bankruptcy, through its website and e-mail before Sunday, 16.06.1436 H, corresponding to 05.04 . 2015 AD. This comes within the Ministry`s pursuit to prepare and develop a new draft for bankruptcy, where the Ministry was keen on designing the general policies of bankruptcy in accordance with the different aspects of the local environmental, such as legitimacy (Islamic Law), statutory and economic, in order to achieve the desired goals of the bankruptcy law in general, taking into consideration a number of advanced international practices in this field.
MCI pointed out that the new draft of bankruptcy seeks to create a systemic environment that may contribute to expand the private investment base in terms of number and volume, through the preservation of the private economic value, to be added to the overall economy. Therefore, the new draft of bankruptcy would give priority to conciliation procedures or reorganizing the debtor's situation, who is in financial troubles and there is still real and true chance to regain his trade activity to a level where he could add values to the overall economy and fulfill his obligations towards the creditors, as well as the new draft aims at liquidating the assets of the commercial institutions which may fail to regain their trade activity in a regular and fast way.
MCI stresses the importance of the new draft of bankruptcy for small and medium enterprises. Therefore, the new draft would contain a number of provisions that take into account the nature of these enterprises and stimulate entrepreneurs to start their business. These provisions would include simplified and swift remedial action to deal with the small and medium enterprises in case of financial troubles, in addition to some of the detailed provisions that might help stimulating the private sector to finance these enterprises.
MCI pointed out that this new draft would contribute in raising the contribution of the private sector, especially small and medium enterprises, in developing the trade and industry and therefore the economic development in general.
MCI would like to invite those interested and the public to participate and express their opinions on the new draft of bankruptcy policies through accessing the link: click here