Parliament amended the Bankruptcy Act to provide the court with the power in justified cases to order the diversification of the debt verification process to make it faster, simpler and more efficient.
The law is expected to assist the liquidation of economic entities where there are a large number of creditors or even a small amount of debt owed to creditors, as is the case with the liquidation of Laiki Bank.
The relevant legislative proposal was tabled by AKEL MPs Irini Charalambidou and DIKO MPs Chrysis Pantelides.
The law empowers the court in justified cases to order the differentiation of the debt verification procedure at the request of the official receiver or administrator, in the case of natural persons, or the liquidator, in the case of insolvent companies.
Ms. Charalambidou said that the effort is to simplify procedures for the benefit of the 14,000 depositors in 2013.
Pantelidis said that this is a modernization of the legislation and hopefully there will be no need to apply it in the future to such an extent and degree.
ELAM MP Sotiris Ioannou, expressed the hope that the legislation will be properly utilized by those responsible and that there will be the necessary political will to solve the problem and that there will be no similar phenomena in the future.
Stavros Papadouris[/B], Member of Parliament of the Ecological Movement for Citizens' Co-operation Stavros Papadouris, referred to the need to operate the relevant platform to accept applications for the Solidarity Fund for sheared depositors 9 years later.
EPP MP Elias Mirianthous said that unfortunately the bankruptcy law is outdated and needs a radical overhaul.
DIKO President Nicolas Papadopoulos said that no one has been held accountable for the haircut for 9 years and some people are having a party on the assets of the bankrupt.
MP Zacharias Koulias said the state is first and foremost to bring legislation in favour of banks but not to serve citizens.
DISY MP Harris Georgiades said householders paid for the criminal mistakes of some who left banks on life support and that no one has paid so far. He said that this law is the minimum that can be done to get to where things are today.
AKEL MP George Loukaides said that some people have so far been passing laws in favour of banks at the expense of borrowers and depositors, citing the risks involved. He recalled that pledges had also been given for the clipped depositors as a whole and these ended up an anecdote of no substance.
Source: CNA
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