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TIC advocates for immediate refinement of the institute of pre-bankruptcy settlement


Transparency International Croatia advocates for the immediate refinement of the institute of pre-bankruptcy settlement and investigation for so far conducted settlements.

This was pointed out by the President of Transparency International Croatia, Davorka Budimir, during the thematic session of the National Council for Monitoring and Implementation and Anti – Corruption  Strategy, whose theme was  “Corruption and misuse of legal regulation of the institute of pre-bankruptcy settlement.’’

“The law on financial performance and pre-bankruptcy settlement was adopted under the excuse of preserving jobs. In order to give somebody something, it has to be taken from somebody else. The worst practice of this rule can be observed in the case of pre-bankruptcy settlements. Pre-bankruptcy settlements are breaking over the shoulders of lenders and taxpayers. Moreover, the Institute of pre-bankruptcy settlement exhibited high corruptively and misuse. Among others, the law does not require the establishment of the credibility of the claims. This situation needs to be urgently changed. “All pre-bankruptcy settlements should be under strict judicial supervision’’, said Davorka Budimir, the President of Transparency International Croatia.

Therefore, TIC seeks amendments on the Law on financial transactions and pre-bankruptcy settlement in order for law to clearly and unambiguously serve the Croatian economy.

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