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Ministers approve insolvency bills

The Council of Ministers has approved two of the five bills relating to the insolvency framework, but they will almost certainly be contested by opposition parties when they are discussed.

ACCORDING to an official press release, the Council of Ministers approved two bills related to the insolvency framework on Wednesday that is designed to provide a degree of protection against foreclosure for those who have been hit by the recession.

The first bill is designed to regulate insolvency practitioners as provided in the framework that was approved by the Cabinet on 30th July and by the House of Representatives on 6th September.

The second bill revises the Companies Act through the introduction of a restructuring plan that will enable viable companies to stay in business.

Both bills are expected to be discussed by the House Finance Committee today when opposition parties will almost certainly attempt to amend the framework, which could result in disrupting the island’s bailout package once again.

The three remaining bills are anticipated to be approved and submitted to Parliament by the end of the month.

According to the terms of the Memorandum Of Understanding (MoU) agreed with its troika of international lenders, Cyprus has to pass the new insolvency laws by the end of this year. However, this appears unlikely unless opposition parties vote in favour.

Readers' comments

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  • Deanna says:

    Have to agree with Mike.

    This whole Troika exercise is becoming a farce. We are left thinking that the euros will be delivered whatever is/isn’t done because Merkel & co are desperate to keep the dreamboat going.

  • Mike says:

    It would seem to me that if amendments are needed to laws then it only goes to prove that the laws were originally passed without proper forethought and foresight being applied in order to cover all possible contingencies but I’m sure that applies to all legislators word wide.

    The last paragraph seems to be a non starter as no matter what we have done or failed to do in the past the next tranche of bailout money is always forthcoming. If we did absolutely nothing or the exact opposite of what the troika demanded then I just have this feeling that nothing will change and bailout Euros would still be dispersed which begs the question who in fact needs who within the EU gravy train circus.

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