BRIEFS. business

Bankruptcy law prompts criticism

The changes to the Código de Comercio recently approved by the Asamblea Nacional regarding bankruptcy cases has been harshly criticized by the country's business community.

The Cámara de Comercio, Industrias y Agricultura de Panamá and the Asociación Bancaria de Panamá jointly published a letter Sunday that criticized the changes.

"We are registering our strongest protest against this action, carried out behind society’s back. We require the national authorities to make an immediate rectification," the letter said.

Deputy Jorge Hernán Rubio, who supported the initiative, said it was done to modernize the law, which dated from 1917. He said the changes were aimed at preventing abuses of such fundamental rights as the freedom of movement and the right to work.

But opposition deputy Luis Barría criticized the decision, saying it benefits corrupt businessmen.

The change in the law means that people involved in bankruptcy proceedings can leave the country without getting the permission of a judge. Previously, a judge could prevent people involved in such cases from traveling.

The Asamblea Nacional approved the law in late December.

Critics said that it was pushed through with little comment or feedback from the business community.

The change is not related to the modifications made to the country’s banking laws that were approved in February of this year.

Those changes, which were made by the executive branch, were designed to give more protection to consumers who may have a dispute with their bank.