CAIRO, Jan 4 (Reuters) - The Egyptian cabinet approved on Wednesday the country’s first bankruptcy law, Justice Minister Hossam Abdelrahim said, part of an economic reform drive aimed at encouraging investment.
The law aims to minimise the need for companies or individuals to resort to the courts and will simplify post-bankruptcy procedures, Abdelrahim said, adding that the measure would also abolish imprisonment in cases of bankruptcy.
Until now, Egypt has had no specific law on bankruptcy, meaning failed companies have had to go to court on a case-by-case basis.
Egypt is in the process of passing a long-awaited investment law aimed at reviving the economy and attracting foreign investors.
Egypt’s economy has been struggling since a popular uprising in 2011, which overthrew veteran leader Hosni Mubarak and drove away tourists and foreign investors, important sources of hard currency. (Reporting by Asma Alsharif; editing by Giles Elgood and Gareth Jones)
Our Standards: The Thomson Reuters Trust Principles.