The amendiment of law on bankruptcy

Published: 10 April 2004 y., Saturday
Czech national bankThe heads of the largest Czech banks and the prime minister Vladimir Spidla have agreed on the need to strengthen creditors' rights by amending the bankruptcy law. The banks see such an amendment as extremely urgent. The law on bankruptcy is crucial for the terms of loans to small and mid-sized companies. Bankers say the availability and cost of loans are being adversely affected by the fact that the current system is highly inefficient. The prime minister has also previously said that the existing law on bankruptcy was very bad. The planned amendment should also introduce a register of insolvent firms and set deadlines for courts to make decisions. The existing Czech bankruptcy legislation has been criticised by international institutions, such as the International Monetary Fund and the European-Czech Forum. They say that the law undermines the country's potential for attracting foreign investment.
Šaltinis: radio.cz
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