The Lok Sabha on Thursday backed a new bankruptcy code, a crucial step towards establishing a debt resolution regime to strengthen the hands of banks seeking to recover $120 billion in troubled loans.
The Insolvency and Bankruptcy Code 2016, passed by a voice vote, is expected to be approved by the Rajya Sabha next week as the main opposition Congress party has pledged its support.
The government will repeal an ineffectual, century-old insolvency law and amend 11 laws now dealing with defaulters.
Junior finance minister Jayant Sinha told lawmakers the code was "transformational" and would help India improve its 130th ranking in a World Bank survey on the ease of doing business.
New bankruptcy code passed
By IndianMandarins - 2016-05-06 10:10:13
The Lok Sabha on Thursday backed a new bankruptcy code, a crucial step towards establishing a debt resolution regime to strengthen the hands of banks seeking to recover $120 billion in troubled loans.
The Insolvency and Bankruptcy Code 2016, passed by a voice vote, is expected to be approved by the Rajya Sabha next week as the main opposition Congress party has pledged its support.
The government will repeal an ineffectual, century-old insolvency law and amend 11 laws now dealing with defaulters.
Junior finance minister Jayant Sinha told lawmakers the code was "transformational" and would help India improve its 130th ranking in a World Bank survey on the ease of doing business.
