could boost FDI into the Caribbean’s largest
A new insolvency law modernising the Dominican
Republic’s bankruptcy system was approved by its
national congress on Tuesday.
The bill is expected to be enacted by the president
this week, after which the judiciary will begin to set up new
bankruptcy courts and impose a new system for
The changes provide much-needed updates to a system
that had its roots in the Napoleonic Code, and which was typically avoided
by debtors and creditors. The new approach allows for the restructuring
– rather than just dissolution – of insolvent
businesses, and should make it easier to repay or negotiate
with a large spectrum of creditors.
"For the first time in our history we have a
detailed, well thought, modern process that should work well,"
said Pedro Gamundi, a partner with Squire Patton Boggs in Santo Domingo.
It is hoped that the...