Bankruptcy

A number of Turkish companies are benefiting from a recent easing of bankruptcy regulations, which some unfairly use as a tool to melt down their debt stock, daily Habertürk has reported. 

The General Secretariat of Public Revenue announced late on Monday announced that taxpayers should seek to enter a debt settlement of up to 24 installments as the period of grace they had been offered in paying off debt due to capital controls has lapsed. The only parties protected are those who yield less than 1,250 euros per month.

The representative of the European Central Bank, Rasmus Refer, stated that should be the last negotiation round adding that the non-performing loans suspend development in Greece and, thus, it should be dealt with, revealing also that Greece’s creditors have many suggestions on how to manage the non-performing loans.

The moment of truth has arrived for foreclosures of private homes that are mortgaged and changes to the scheme for debt settlement in 100 installments.

During a news conference, after the completion of a round of meetings with top government ministers in Athens, the EU Economic and Monetary Affairs Commissioner Pierre Moscovici expressed his satisfaction over “a spirit of cooperation and confidence” restored between the institutions and the Greek government following the signing of the agreement on July 12.

The countdown is on for reforms to the plan for debt settlement in 100 instalments for 1.1 million people. The main changes include a reduction in the number of instalments and an increase to the interest rates.

Croatia's new law on bankruptcy came into force on Tuesday, sending 19,646 companies with 10,139 employees into bankruptcy.

The new law proscribes that all companies that have their assets blocked for over 120 days will automatically be pushed into declaring bankruptcy.

Bank Insolvency Act amendments aimed at allowing easier access of creditors to information related to the insolvency proceedings passed second reading in Parliament on Wednesday.

Under the newly adopted provisions, the list of creditors who have submitted claims against a bank undergoing insolvency proceedings will be published in the Business Register.

Vasil Velev, Chair of the Bulgarian Industrial Capital Association (BICA), has rejected allegations of an upward trend in corporate bankruptcies, stressing that H1, 2015 data testifies to the opposite.

Bulgaria's Registry Agency announced on July 16 that the number of bankruptcies had gone up by 34% on the year in H1, 2015 to a total of 341 companies.

It is difficult to understand why there is so much jubilation in Cuba or among Turkey's romantic socialists over the Greek "oxi" (no) vote and the subsequent developments in Greece. Does Greece have an incredible amount of debt? It does. Should it pay it? It should. Can it compare the situation with the post-war situation and the conditions Germany and the World War II victors "agreed" upon?