YEREVAN, November 15. /ARKA/. Armenia’s Parliament has approved today in the first reading a set of amendments to the Law on Bankruptcy, which are designed to bring this procedure in line with the requirements of the World Bank’s Doing Business rating.
Deputy Minister of Justice Rafik Grigoryan said Armenia’s position in the rating is determined by the recorded progress on a number of parameters, including the one on bankruptcy.
He said also that there is a set of shortcomings in Armenia’s relevant legislation, such as high cost of bankruptcy proceedings, the length of the bankruptcy process, the absence of clear terms for the bankruptcy procedure, insufficient protection of the rights of the borrower and lender and so on.
“In view of these factors, the proposed amendments suggest that civil proceedings related to the bankruptcy procedure should fit into the framework of the bankruptcy procedure, which will seriously cut the time spent and the effectiveness of this process,” the deputy minister said.
The amendments call also for reduced commission payments for the services of bankruptcy trustees, also extra payments are provided for completing the procedure in a shorter time. In addition, measures will be taken to increase the transparency and accountability of bankruptcy trustees.
Under the amendments, control over the implementation of the bankruptcy process will be entrusted to the Ministry of Justice. –0–
