The draft law “On Rehabilitation and Bankruptcy” and relevant amendments were approved at the plenary session of Majilis chaired by Nurlan Nigmatulin.
“According to the report prepared by the World Bank, the main drawbacks of the bankruptcy system in Kazakhstan are vagueness of certain provisions of the law or lack of important provisions, insufficient protection of creditors’ rights, institutional weaknesses, as well as requirements that lead to the time consuming procedures” – said in the conclusion of the profile committee of Majilis.
The approved draft law will allow to improve the current system of bankruptcy to the world standards, and reduce the administrative burden on businesses, improve business climate in the country and increase the investment attractiveness of the economy.
“Also the draft law will increase transparency of bankruptcy, will make it predictable, will significantly reduce the corruption potential in this area, will increase protection of the vulnerable populations, which ultimately will create prerequisites for establishing the most effective bankruptcy system”, – stated in the conclusion of the Committee on Finance and Budget.
The draft law provides for extension of terms allowing tax creditor to file a claim in a court to declare the debtor bankrupt. Besides, basis for invalidation of transaction made on the eve of the bankruptcy are enlarged and concretized.
In addition, implementation of the draft law measures will improve the Kazakhstan’s position in Doing Business Rating of World Bank in Getting Credit and Resolution of insolvency categories.
Originally posted to Strategy2050.kz and bnews.kz on 11.12.2013: