Business Community Calls for Review of Draft Law on Insolvency and Bankruptcy

The Private Sector Federation (PSF) has called for a review of the 2017 draft law on insolvency and bankruptcy, saying it is silent on some key issues, like how to handle cases of bankruptcy among individuals and NGOs, the New Times reported. Deus Kayitabarwa, the director of advocacy at the Private Sector Federation (PSF), explained that the proposed law mainly focuses on business enterprises, but is silent on how an individual or a non-governmental organisation goes bankrupt. “Therefore, we want the draft law to include provisions on how to handle all issues related to or arising from bankruptcy, not only traders, industrialists, banks or insurance firms, but also for individuals and NGOs, among others. “In addition, the draft law is not in the interest of the business community. For instance, it gives debtors more rights compared to creditors. “We think this is not right and should be addressed to include these aspects to make the proposed law all-inclusive to serve every Rwandan, firms and organisations, which will ensure fairness for all,” Kayitabarwa said. The PSF official was speaking on the sidelines of a consultative meeting on the proposed law on insolvency and bankruptcy on Tuesday. Read more.