A dialogue session organized by the Jordan Chamber of Commerce in collaboration with the Companies Control Department and the International Finance Corporation (IFC) – World Bank Group on Tuesday delved into the implications of the insolvency law for the commercial and service sectors, with a particular focus on its objectives in strengthening the Kingdom’s business environment.
The session, attended by representatives from companies and commercial and service institutions across various sectors, highlighted the importance of the insolvency law in maintaining a robust and resilient economy, capable of withstanding financial challenges and supporting business continuity.
Wael Armouti, General Controller of Companies, underscored that the session is part of ongoing efforts to strengthen the partnership between the public and private sectors and introduce them to the Insolvency Law No. 21 of 2018, which defines insolvency as a debtor’s inability to regularly pay their debts or when their total liabilities exc
eed their assets.
He highlighted the recent establishment of a unit dedicated to licensing insolvency agents. This unit, staffed with experts, will work to protect businesses’ financial assets and provide legal mechanisms to support them through financial difficulties. The goal, Armouti explained, is to help companies remain operational and viable while protecting the interests of creditors and employees.
Speaking at the session hosted by the Amman Chamber of Commerce, Armouti stressed that the insolvency law is designed to maintain the existence of businesses and secure their continuity. By doing so, it also helps preserve jobs and improves the credit environment, which in turn enhances the attractiveness of Jordan’s investment climate for both local and international investors.
He pointed out that the law is a response to the evolving needs of economic development in the Kingdom. It provides a legislative framework that addresses the insolvency of both individuals and companies, enabling them to reorgani
ze and recover financially while protecting the rights of all parties involved.
Firas Sultan, Second Vice President of the Jordan Chamber of Commerce, noted that this collaboration demonstrates the Jordan Chamber of Commerce’s commitment to supporting the national economy and enhancing the resilience of companies in the face of financial difficulties.
Sultan also stressed the importance of the insolvency law in light of the exceptional circumstances the Kingdom is currently facing, particularly the challenges posed by the repercussions of the Israeli aggression on Gaza.
Sultan stated that the insolvency law is a key part of the economic reforms that have been enacted under the directives of His Majesty King Abdullah II. He emphasized that the law does not merely serve as a mechanism for winding down companies, but rather offers them the opportunity to restructure and start anew. This allows companies to continue operating while protecting the rights of creditors, employees, and even the business owners the
mselves.
He added that the insolvency law aims to rehabilitate businesses, not close them down. This provision is essential for creating a more dynamic and sustainable economic environment that can adapt to challenges.
Sami Kharabsheh, Director of the Insolvency Agents Licensing and Supervision Unit at the Companies Control Department, discussed the functions of the unit, the role of insolvency agents, and the importance of the insolvency law in enhancing business performance and ensuring continuity. He emphasized that the law seeks to balance liquidation and reorganization, allowing companies to reorganize under court supervision and giving them a chance to survive and thrive in challenging times.
Kharabsheh explained that the law offers businesses the opportunity to restructure through reorganization plans approved by creditors, which are supervised by the courts to ensure transparency and fairness.
Source: Jordan News Agency