Angola's cabinet council passes law to improve business environment

View of the skyline in the Angolan capital Luanda. Courtesy: Jason Clendenen/Smithsonianmag.com

Angola's cabinet council on Saturday approved the new Legal Regime for Companies Recovery, Insolvency and Financial Guarantees to improve the business environment in the country, says the final communique of the meeting.

The law, which has been forwarded to the parliament, establishes legal mechanisms necessary for credit recovery, for the declaration of insolvency of a group or person in an economically difficult situation and legal means to declare imminent insolvency.

The legal tool intends to satisfy the interest of the creditors, the maintenance of employment and preservation of the economic activity and social role of the employers.

The mechanism also seeks to eliminate legal, institutional and procedural bottlenecks that create a less attractive business environment and to adjust the present legislation, which is no longer adapted to the reality of the country.