SIMILAR ARTICLES

Iasi – Tg.Mures highway disappeared from Large Infrastructure Operational Programme 2021-2027

The Ministry of European Funds has taken out Iasi-Tg. Mures highway project from the Large Infrastructure Operational Programme 2021-2027 and the Ministry of Transport already… Mai mult

State is borrowing at increasingly higher costs – government bond yield reached 5.33% per year

The benchmark government bond yield jumped above the 5% threshold on Thursday. The Ministry of Public Finance (MFP) attracted RON 300 million from banks on… Mai mult

Senate postpones discussions on DNA’s request on waiving immunity of Calin Popescu Tariceanu until February 2019

The Senate has decided that it will put to the vote the decision to waive Calin Popescu Tariceanu’s immunity only in the spring session, that… Mai mult

European Semester / European Commission asks Romania to correct its medium-term structural deficit by 1% of GDP

Minister Eugen Teodorovici is pressured by the EU to reduce the budget deficit After finding that the Government has done nothing to adjust the deviation… Mai mult

Implementation of 5G technology, a multiplication effect in economy of EUR 4.7 billion – announces Sorin Grindeanu (ANCOM)

The National Authority for Management and Regulation in Communications (ANCOM) launched on Wednesday the National Strategy for the Implementation of 5G Technologies in Romania for… Mai mult

Cronicile

Government amended insolvency law. Guarantees given by Minister Teodorovici

de Adrian N Ionescu , 1.10.2018

The Government adopted on Thursday the draft Emergency Ordinance for amending and supplementing legislation in the field of insolvency, which provides among other things for the transformation of budgetary receivables into shares.

Business people could get rid of the public-law liabilities of the companies they control as the draft gives the state the possibility to convert debt into shares in that company.

At the same time, the ordinance hinders the starting of the insolvency procedure in companies with public-law liabilities of over 50%.

Insolvency practitioners have criticized the draft prepared by the Government and have advanced several amendment proposals. The Finance Minister recently accused the Minister of Justice of delaying the Government’s approval on this draft.

“ANAF will have a clear procedure so that when the law says it has to do certain things, it needs to justify very clearly the two variants. When it takes a decision, to ask for a company’s bankruptcy, it would need to explain why it does that when it does not apply a measure, why it does not apply it, why it proposes a debt to equity swap, and what economic reason exists, and so on. The primary legal framework is covered. At a working procedure level within ANAF, things will be very clear,” Minister Eugen Teodorovici said at the end of the meeting.

Main provisions:

  • “The reorganization plan may only provide for the conversion of budgetary receivables into shares if the following conditions are cumulatively met:
    • It should results from the content of the reorganization plan, based on the economic-financial analysis, that the debtor company can continue its activity and the proposed measure is viable for society;
    • it should result from the content of the reorganization plan that the settlement of claims leads to maximizing the recovery of the state’s claim, as compared to the situation of the debtor’s bankruptcy;
    • the conversion should be integral and applied at the value of the budgetary claim, and cannot be cumulated with the measure of reducing the budgetary claim.
  • The budgetary creditor may approve the reorganization plan which contains the proposal for reducing the unguaranteed budgetary claim, a reduction substantiated by the insolvency administrator within the plan if the following criteria are met:
    • a) the reduction measure is the optimal way of recovering the unguaranteed budgetary claim as compared to the debtor’s bankruptcy;
    • b) the debtor owns a trading fund that enables it to continue its activity;
    • c) the reduction measure leads to the viability of the debtor company;
  • If the insolvency administrator proposes in the reorganization plan the measure of reducing the unguaranteed budgetary claim by up to 50%, the budgetary creditor approves the plan if the criteria set out in par. (51) and at least one of the following are cumulatively met:
    • a) at least 50% of the current tax liabilities due during the implementation of the reorganization plan should result, compared to their average annual level prior to the insolvency;
    • b) the debtor company must carry out an activity of public interest;
    • c) the debtor company must carry out a strategic activity in a particular economic field.

“Changes of the legislation are meant to stop some abusive practices, such as repeated insolvency, in order to elude the payment of obligations to partners and the state budget,” Viorica Dancila said at the opening of the Government meeting.

The Prime Minister has justified that over 28,600 taxpayers are subject to the insolvency legislation.

“Under these circumstances, we come up with a set of regulations that make the insolvency procedure more efficient. We are considering both providing conditions for the recovery of viable companies and protecting the public money by recovering budgetary receivables,” the Prime Minister also said.

Mergeți în homepage ›

Publicat la data de 1.10.2018

Lăsați un comentariu


NEWS

State is borrowing at increasingly higher costs - government bond yield reached 5.33% per year

The benchmark government bond yield jumped above the 5% threshold on Thursday. The Ministry of Public Finance (MFP) attracted RON 300 million from banks on… Mai mult

Iasi - Tg.Mures highway disappeared from Large Infrastructure Operational Programme 2021-2027

The Ministry of European Funds has taken out Iasi-Tg. Mures highway project from the Large Infrastructure Operational Programme 2021-2027 and the Ministry of Transport already… Mai mult

Senate postpones discussions on DNA’s request on waiving immunity of Calin Popescu Tariceanu until February 2019

The Senate has decided that it will put to the vote the decision to waive Calin Popescu Tariceanu's immunity only in the spring session, that… Mai mult

Implementation of 5G technology, a multiplication effect in economy of EUR 4.7 billion - announces Sorin Grindeanu (ANCOM)

The National Authority for Management and Regulation in Communications (ANCOM) launched on Wednesday the National Strategy for the Implementation of 5G Technologies in Romania for… Mai mult

FIC: Amendments on Criminal Codes expose business environment to abuses from civil servants

Some of the amendments to the criminal codes will generate mistrust regarding Romanian state's ability to ensure the legality, stability and predictability of business relationships… Mai mult

European Semester / European Commission asks Romania to correct its medium-term structural deficit by 1% of GDP

Minister Eugen Teodorovici is pressured by the EU to reduce the budget deficit After finding that the Government has done nothing to adjust the deviation… Mai mult

Sovereign Fund gets legal base. Details announced by Minister Teodorovici

The Government adopted on Thursday the ordinance that provides for the general framework for the establishment of a Sovereign Fund. Later, after new talks with… Mai mult

Ford is looking for 1,700 employees to produce EcoSport SUV model

The representatives of Ford Craiova met on Wednesday with mayors of 30 localities from Dolj county in order to stimulate the attraction of 1,700 new… Mai mult

Development strategy / Government squeezes even investment money from its own companies: EUR 120 million from only two entities in energy field

Nuclearelectrica (SNN) and Romgaz (SNG) have calculated the additional dividends to be paid to the state after the Ministry of Finance (MFP) sent to the… Mai mult

DNA, officially: Senate President is suspected of having received a USD 800,000 bribe. Case file opened at a request from Austrian judicial authorities

The case file in which the DNA requested the waiving of the Senate President’s immunity was opened at the request of Austrian judicial authorities and… Mai mult

Illegal state aid / European Commission demands Romania to recover EUR 60 million from CE Hunedoara

Romania has to recover illegal state aid worth EUR 60 million granted to Compexul Energetic Hunedoara, announced the European Commission with a statement released on… Mai mult

Ministry of Finance planned loans of RON 4.74 billion in November. Costs are increasing

The Ministry of Public Finance (MFP) intends to borrow in November RON 4.74 billion, 1.4% more than in the previous month, according to the Ministry.… Mai mult

New 100% Romanian tractor has been launched. Features, endowments, price

IRUM Reghin launched the first 100% Romanian tractor, announced Digi24, designed and built by the company’s engineers, 15 years after the Romanian tractor manufacturing disappeared.… Mai mult

Romanians from abroad sent as much money to Romania as Government attracted from European funds and subsidies

Romanians working abroad sent EUR 2.695 billion to the country in the first eight months of 2018, equalling the European funds and subsidies received in… Mai mult