Albanian gov't, World Bank prepare new bankruptcy law

Albanian Deputy Minister of Justice Arben Isaraj said on Thursday that Albanian government is preparing a new bankruptcy law with the World Bank, which focuses on reorganizing, rather than liquidating, businesses.

"It doesn't matter who goes bankrupt. The important thing is that when businesses are facing difficulties, the government will allow them to continue their activity in the market and even return," he explained.

In order to avoid possible abuse of the new law, it foresees stronger inspection measures to prevent businesses from declaring false bankruptcy by intentionally hiding their revenues.

"This means an active role of a prosecutor in the financial rehabilitation supervision or bankruptcy, regarding their concerns for frauds," Isaraj added.

The draft is expected for the first time to treat individuals with debts and financial difficulties, in view of the fact that would have negative impacts.

According to Albanian Daily News, the new draft for bankruptcy is part of a three-year agreement that Albania has signed with the World Bank. Endi