A man reads a book on bancruptcy during the meeting of Moscow Arbitration Court.
Photo: Dmitry Lekay
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Bankrupt Individuals to Have 5-Yr Delay
The proposal of the Economic Development Ministry is that the Russians unable to pay debts will be able to undergo bankruptcy procedures and get the payment deferment of up to five years. The ministry intends to submit to the government the bill on bankruptcy of individuals already this year. The banks, to which the individuals owe 131.2 billion ruble aren’t ready for such delay, while the receivers that will be selling the property of bankrupt Russians say it won’t be easy to avoid its collection.
Deputy Economic Development Minister Anna Popova announced yesterday that the ministry intends to again submit to the government the bill on bankruptcy of individuals. The draft emerged in 2006 and the ministry presented it to the cabinet in spring. But the document provoked a raft of remarks and is currently agreed on in the Supreme Arbitration Court.
Initially, the ministry proposed 100,000 ruble as the sum of the debt to initiate the bankruptcy procedures. But this amount is currently applied for the companies, so the individuals will probably have 50,000 ruble according to Dmitry Skripichnikov, deputy chief of the corporate management department at the Economic Development Ministry. One of the vital provisions will be that Russia’s citizens, including the individual entrepreneurs, will be granted the payment deferment of up to five years.
Under the estimate of the Central Bank of Russia (CBR), the individuals owed some 131.2 billion ruble to the banks as of October 1, and the bankers will hardly hail the delay. The receivers are also skeptical about their chances to halt property disposal of bankrupt Russians.
www.kommersant.com
All the Article in Russian as of Nov. 28, 2008
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