IMF agrees to new timeline for passage of Bankruptcy Act

THE STRUCTURAL benchmark for the passage of the Bankruptcy and Insolvency Act has been shifted from the end of March to June.

Anthony Hylton, minister of industry, commerce and investment, made the revelation while addressing a meeting of the joint select committee considering the bill yesterday.

He said the International Monetary Fund (IMF), with which Jamaica has agreed to implement a raft of reforms in exchange for loans and its imprimatur to access markets, has agreed for the relaxation of the timeline.

"It was acknowledged that the pace of these reforms are challenging; that it is causing some difficulties, not in the least the debates, which really should ensue within the Parliament," Hylton said.

The joint select committee, which was holding its second meeting to review the 222-page bill, had set early March for the completion of its work to enable a report to be sent to the House of Representatives in time for debate and passage by March 31.

Hylton told the committee that there were benefits in completing their work quickly, but stated that "we don't need to do it at breakneck speed and certainly not to the detriment or the dialogue and the debate that a bill of this scale, scope and impact deserves".

The Bankruptcy and Insolvency Act contains provisions to repeal the current bankruptcy law, and to create the framework for the rehabilitation of an insolvent debtor, as well as provide for corporate and individual insolvency.

ECONOMIC CONTEXT

Last week, Finance Minister Dr Peter Phillips, while speaking at a joint press conference with representatives of the IMF at his Heroes Circle office, urged the multilateral partners to give due consideration to the pace at which reforms were to be made to the country's economy.

"The GOJ (Government of Jamaica) believes that consideration must be given to the pace of reforms going forward, given the significant constraints on institutional capacity," Phillips said.

"Further, given the extensive nature of these reforms, time must be allowed for full discussion by all stakeholders," the minister added.