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Egypt Passes Bankruptcy Law

Egypt Passes Bankruptcy Law

Monday, 29 January, 2018 - 12:00
A customer counts US dollars in a bank in Cairo, Egypt, November 3, 2016. REUTERS/Mohamed Abd El Ghany

Egypt’s parliament has passed the country’s first bankruptcy law, part of a reform drive to revive the economy, the investment ministry said in a statement on Sunday.

The new law aims to minimize the need for companies or individuals to resort to the courts and to simplify post-bankruptcy procedures. It will also abolish imprisonment in cases of bankruptcy.

The Egyptian government has been implementing an economic reform program since 2016 to restore the stability of its finances, promote growth and employment.

It includes among other things subsidy cuts, the implementation of the Value Added Tax (VAT), floating the currency, a new investment law and the adoption of the bankruptcy law.

A recent World Bank report said that Egypt now ranks at 128 out of 190 on the most recent World Bank “Doing Business” survey. That’s down from 122 as recently as 2016.

Meanwhile, Egypt plans to stop importing liquefied natural gas (LNG) next June, Petroleum Minister Tarek El Molla said.

Egypt said previously that it would halt imports by the start of 2019.

Molla said the country will save $250 million per month by no longer importing LNG.

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