YEREVAN, APRIL 4, ARMENPRESS. Armenia’s justice ministry submitted the draft law on ‘Bankruptcy’ for public discussion according to which it is expected to increase the efficiency, accountability of the activity of bankruptcy managers, as well as their responsibility.

Tigran Dadunts – expert in private law in the Center for Legislative Development and Legal Research of the justice ministry, told Armenpress that one of the main goals of the draft law is to improve Armenia’s positions in the bankruptcy index of the World Bank’s Doing Business report, as well as to reduce bankruptcy proceedings dates.

“In this sense concrete dates for taking some actions by bankruptcy managers have been set. In other words, the manager should try to fulfill his duties as soon as possible”, he said.

“Taking into account the requirements of Doing Business, according to which the bankruptcy proceeding must be less costly and the burden of debtors be lighter, certain reduction of salaries of managers has been envisaged since the international experience shows that high salary leads to increase in costs of bankruptcy proceeding. On the other hand, in order for the managers to be interested in quickly and effectively completing the bankruptcy proceeding, we will provide additional payments”, Tigran Dadunts said.

He added that according to the draft law it is expected to ensure transparency and availability of bankruptcy proceeding.

“The bankruptcy manager must run the case online, and in this case the materials must be available both to creditors, debtors and court. This also is something new since at the moment all these procedures are being done by document option”, he added.  

Asked what is the reason of heated discussions and complaints in regard to this draft law, Dadunts said they are mostly subjective, but all well-grounded proposals have been taken into account. “Bankruptcy managers say by the draft law additional obligations have been set for them, and their responsibility has increased”, the expert said, adding that the innovations and changes will lead to very good results, and the provisions which caused concern among concerned sides, have been discussed, edited and amended.

Tigran Dadunts informed that while developing the draft law the experience of Japan, which is leading in terms of bankruptcy index, as well as that of several European countries have been studied.

English –translator/editor: Aneta Harutyunyan