Cabinet think tank: Corporate bankruptcy up 235 percent

Corporate bankruptcy in Egypt rose 235.3 percent during the first five months of 2011, with 57 companies declaring bankruptcy as compared to 17 during the same period of time last year.

According to a recent report by the Egyptian cabinet's Information and Decision Support Center, the number of new bankruptcy cases increased 11.1 percent to 319 cases as compared to 287 cases during the first five months of 2010.

Cairo University economics law professor Samiha al-Qalyuby said the Egyptian revolution affected company sales, exports and revenues.

Qalyuby called for new legislation that will allow bankruptcy declarations to be delayed under extraordinary circumstances, such as wars or revolutions. She noted that such a law was in place during the 1956, 1967 and 1973 wars and that banks must consider the extenuating circumstances preventing their clients from making their payments on time.

Translated from the Arabic Edition

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