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Prison sentences in bankruptcy lawsuits abolished in Egypt

Prison sentences in bankruptcy lawsuits abolished in Egypt

Egypt

Egypt has abolished prison sentences in bankruptcy cases and limited punishment to a monetary fine.

The Egyptian cabinet approved a law abolishing it on Wednesday to establish a system to reduce judicial resort in bankruptcy cases, Justice Minister Hossam Abdel-Rehim told the media on Wednesday.

The law prescribes harsher punishment for false bankruptcy claims, as well as implementing measures to protect merchants and creditors, local Egyptian news portal Ahram Online reports.

They quoted the Investment Minister Dalia Khorshed saying the new law is part of the latest investment legislations adopted by the government to provide the maximum possible amount of guarantees for investors and businessmen.

Bankruptcy rulings have risen in Egypt since 2014 with thousands of dollars in debt values.

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