Draft on bankruptcy suspension to be submitted to parliament: Minister
AA photoA draft regulation on bankruptcy suspension practices was almost ready and would be submitted to parliament very soon, Customs and Trade Minister Bülent Tüfenkci has said.
“We have given the latest shape to the draft on bankruptcy suspension practices. We will submit it to parliament very soon so as to make it effective before parliament’s holiday,” he said in an interview on CNN Türk on June 22.
More than 1,000 companies have sought to have their bankruptcy proceedings suspended since the beginning of 2015, but experts warned the misuse of the condition could lead to a domino effect in the economy. Experts noted that suspension of bankruptcy was a method for companies experiencing financial difficulties to recover their losses and improve their condition.
The Banks’ Association of Turkey (TBB) also recently warned that bankruptcy suspension decisions were being approved by relevant authorities with only the most perfunctory of reviews.
Tüfenkci also mentioned another draft bill which stipulated one to six months in jail to people who did not pay their checks.
“We plan to pass this draft before parliament is closed for its holiday,” he added.