The Egyptian parliament gave a preliminary approval on Tuesday to a law governing debt restructuring, preventive composition, and bankruptcy, Ahram Online quotes MP Haitham El-Hariri as saying.
The law is expected to improve Egypt’s ranking in the World Bank’s Doing Business report, Investment and International Cooperation Minister Sahar Nasr has told MPs before the vote on the legislation.
The legislation guarantees protection for financially struggling investors, allowing debtors to file for bankruptcy.
The new law would put in place a mediating system to avoid referring cases to criminal proceedings.
The law also simplifies procedures and guarantees safe exit for companies that go bankrupt, with a possibility for integrating businesses back into the market through debt restructuring.
It also protects creditors by guaranteeing they are paid their dues.
Egypt ranks number 115 in the Resolving Insolvency index in the Doing Business 2018 report, the lowest rank being 168.