Debtors, Creditors To Soon Benefit From Insolvency Legislation

by Glen Simon The National Competitiveness and Productivity Council (NCPC) continues a proactive approach to legislative reform, building upon the recent enactment of the Security Interest in Movable Properties Act. The Insolvency Bill, having completed its initial reading in the House of Parliament, is the next significant step. The bill aims to offer individuals and businesses grappling with economic challenges the opportunity to restructure their financial obligations with creditors. “The main goal of this piece of legislation and the reform project is to balance the interest between financial institutions and borrowers,” said Sharma Mathurin, NCPC Deputy Director. One of the prevailing misconceptions regarding Insolvency Legislation is the belief that it gives lending institutions increased authority to pursue the assets of debtors in default. Mathurin clarified, and outlined crucial protections embedded within the legislation. “The main objectives of this legislation is to ensure that there are proper laws in place and that there is an established Office of the Receiver or Supervisor of Insolvency to ensure that no one party exercises any pressure. Having insolvency legislation and an insolvency legal framework in place ensures that the financial institutions are able to recover the monies lent to the public which results in...