CRO GOVT SUGGESTS SOLUTIONS FOR SPEEDIER BANKRUPTCY PROCEEDINGS

ZAGREB, Feb 25 (Hina) - The Croatian government on Thursday adjusted a bill on changes to the bankruptcy law as part of a programme for resolving illiquidity. The bill should expedite bankruptcy proceedings and provide legal possibilities for a speedier elimination of legal subjects from legal dealings. The Croatian bankruptcy law came into effect on January 1, 1997 and helped carry out a reform of the bankruptcy right. According to Justice Minister Milan Ramljak, the enforcement of the law in practice failed however to yield expected results. Ramljak said one of the reasons why goals had not been achieved was the fact that insolvent debtors did not file for bankruptcy of their own accord, despite their legal obligation to do so. Creditors did not do so either, despite constant failures to settle debts, he added. The bill on changes to the bankruptcy law advocates a stronger role for state attorneys who, said Ramljak, would file for bankruptcy against debtors on creditors' behalf. The bill also suggests higher responsibility of the bankruptcy commissioner in relation to the cashing of the bankrupt debtor's property. To resolve the illiquidity issue, the government has also suggested changes to the distress law and the crafts law. Premier Zlatko Matesa said bankruptcy did not necessarily mean the debtors' ruin, and assessed as stupefying the fact that many were unfamiliar with or had not yet used the opportunities granted them by the bankruptcy law. (hina) ha jn