ADB holds Stakeholders’ Consultations on Bhutan’s Insolvency Rescue Bill

In conjunction with Bhutan's Ministry of Finance, ADB held stakeholders' consultations on the draft Insolvency Rescue Bill of Bhutan 2024 in Paro on 15-17 April 2024. The objective of the new law is to simplify the current insolvency law, which is seen as complex and impractical particularly for micro, small, and medium-sized enterprises (MSMEs) and individuals. The new law also aims to build a "rescue culture" by providing options to debtors in distress amidst the current stigma towards bankruptcy. The draft Bill was presented to key stakeholders including the Supreme Court, Office of the Attorney General, Bhutan National Bank, Bhutan Chamber of Commerce and Industries, and Royal Monetary Authority and is planned to be submitted to Parliament by the end of 2024. The law reform is led by Principal Counsel Nicholas Moller under Office of the General Counsel’s Law and Policy Reform Program.