Bankruptcy institution reform postponed at least until autumn

Large-scale changes to the insolvency law have been temporarily postponed, at least until the expiration of the previously introduced moratorium on bankruptcies of companies and individuals.  Such a joint decision was made by the State Duma and the Cabinet of Ministers.

Initially, as early as this spring, the lower house of parliament was about to consider a draft law regulating corporate bankruptcy.

However, later the authorities made a decision to first take stock of the situation that has developed against the backdrop of the moratorium, as well as the results of the economic and financial stability of companies.

It will be possible to speak about the last criterion just after the expiration of the governmental moratorium.

According to Sergei Gavrilov, the Chairman of the State Duma Committee on Property, Land and Property Relations, the planned reconsideration of the bill will have to include the issues of financial recovery of companies, as well as protection of employees' rights. The official noted that in insolvency cases it is important to balance the interests of creditors and their debtors, RBC reports.

According to a number of experts, the decision to postpone the reform of the insolvency procedure is quite justified, since at the moment, the business is facing new difficulties, and the previously developed norms as part of the reform of the bankruptcy institution did not provide for the challenges that arose.