Insolvency law review
SPEED conducted an independent review of the draft law on business insolvency which was prepared in 2009 and is expected to be submitted in parliament later this year. The SPEED team deemed it necessary to assess the draft law’s strengths and weaknesses and determine if further revisions are needed before submission. The new law would completely overhaul Mozambique’s existing framework and replace it with a far more modern model conforming to international standards. The review found the draft law largely appropriate, though seeing that it is based on a Brazilian model, adaptations should be made in implementation. The review also elaborated interventions and resources that will be needed for transitioning to the new insolvency system, most particularly in judicial system training, related institutional reforms, capacity building for insolvency administrators and other associated professions (legal, management and accounting). SPEED will work with key stakeholders in government, parliament, the banking sector, unions, and private sector associations to help move the draft law to passage in parliament during the year. Additional resources on insolvency in Mozambique can be found here.