21 Nov 2018 15:50pm
SWAKOPMUND, 21 NOV (NAMPA) Revising Namibias insolvency legal framework and ensuring an increased rating for resolving insolvencies will improve the country's cost of credit.
These were the remarks by Minister of Justice, Sacky Shanghala during the official opening of the national consultative workshop on the Insolvency Bill here on Wednesday.
This [Bill] will also improve access to credit and the ease of conducting business, especially where foreign investment is concerned, Shanghala added.
The workshop is aimed at refining the draft Insolvency Bill prepared by the Law Reform and Development Commission (LRDC).
According to the LRDC, the workshop aims to draw on the experiences of various stakeholders in order to ensure that proposals for law reform contained in the Bill are practically feasible to implement.
It will also subject the proposed Bill to final consultations with stakeholders in order to finalise the review process of the 1936 Insolvency Act. The review process started in 2013.
The Insolvency Bill, according to LRDC Consultant Adolf Denk, is to allow creditors to benefit from debtors, who are unable to settle debts, through a court agreed liquidation process or to score the orderly and equitable distribution of debtors assets, where they are insufficient to meet the claims of all creditors.
Shanghala further added that the advancements made during the revision of the Bill will allow the economy to improve to the advantage of all Namibians.
International standards that have been set by institutions such as the World Bank, the United Nationals Commission on International Trade Law, among others, have always been aimed at assisting countries to strengthen insolvency legal frameworks in order to grow their economies and we should therefore embrace them, he said.
The workshop ends Friday.