9 November 2017

Burundi: Adopted Bill On Trader Insolvency to Help Reduce Bankruptcy Risks?

Burundi National Assembly adopted a bill on trader insolvency on 08 November, 2017. The new law will allow insolvent businessmen to lodge a complaint and the institutions to sue foreign traders unable to pay debts even outside the country. Some MPs questions its efficiency.

Traders who go bankrupt or who are unable to pay back debts are now allowed to file a complaint and ask for compensation. "From now on, insolvent traders are allowed to claim compensation. They will lodge a complaint to the Supreme Court. They are also allowed to ask for assistance," says Pelate Niyonkuru, Minister of trade and industry.

For Aloys Ntakirutimana, this bill does not resolve the problem of insolvency. He suggests that the government review the projects of those businessmen and draw up a set of some practical guidelines that can help them collaborate with strong networks of business people or institutions. "There should be a review of the initial business plan so as to avoid possible failure", says Ntakirutimana.

Minister of trade reminds that this law does not solve all the problems but promises to foster successful innovations later. "We focussed on insolvency as it is a matter of urgency. The law resolves some problems though not all," says Pelate Niyonkuru.

She says the bill will promote international business as it will help to sue foreign merchants who have debts.

"They were not sued after they had left the country even though they had other wealth outside the country. We will now be able to sue them," says the minister.

For MP Gelase Ndabirabe, this bill should be adapted to the international standard to help merchants.

The minister of trade says the bill was revised in accordance with the World Bank demand to introduce an international law that regulates insolvent traders.

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