All the pieces of legislation concerning insolvency will be brought together into one Insolvency Code, and the Romanian Justice Minister Robert Cazanciuc (in picture) plans to send the draft law of this code to the Government this summer, in July. Cazanciuc cited the unhappiness in the legal system caused by the need to make decisions based on several laws, and the high number of insolvencies recorded in recent years.

When creating the Insolvency Code, the ministry will also debate it with representatives of the business environment, the minister said. “There's a need for an insolvency code which will balance between lenders and debtors,” said the minister, adding he does not know yet if an insolvency code for individuals will also be created.

In 2011, over 19,000 companies became insolvent in Romania. In 2012, over 23,000 companies started insolvency procedures. Several big companies in Romania filed for insolvency, including the state owned energy producer Hidroelectrica, chemical producer Oltchim, road builder Romstrade, a former Mechel factory, various real estate projects.

editor@romania-insider.com

(photo source: gov.ro)