The Efficiency of the Bankruptcy System in Egypt

Abstract:
The purpose of this paper is to assess the efficiency of Egypt’s bankruptcy system, identify and analyze the main reasons for its inefficiency and offer specific proposals for bankruptcy reform. Its merit lies in focusing on market exit – a fundamental feature of a well functioning market economy that has remained largely unexplored in Egypt.
The paper concludes that a more efficient and effective bankruptcy system should provide appropriate incentives for the debtor, creditors and the bankruptcy trustee to reorganize potentially viable firms thereby preventing premature liquidation. Fulfilling these requirements will help protect the interests of various stakeholders, particularly workers and minority shareholders, and promote investment and credit.