Saudi Arabia takes out $10 billion in bank loans
Saudi Arabia has taken out a landmark five year loan totalling $10 billion from a number of global banks as it sets out its first international bond issue since 1991 to address a budget shortfall caused by dwindling oil revenues and reserves. In an attempt to deal with the financial issues caused by low oil prices, Saudi Arabia has announced changes that include raising utility prices, cutting subsidies and privatising state assets. A more-detailed economic-overhaul plan is expected in coming weeks.
New "Mini-Insolvency Law" in UAE
The Chairman of the UAE Banks Federation has announced a new "rescue initiative" which they have declared a "mini-insolvency law" in relation to SME debt in the UAE under which member banks can impose a 90-day "standstill" on judicial means to enforce the payment of SME debts. The initiative is designed to benefit SMEs with debts in the range of DH 50 million (c.£9.3m) - DH 1 billion of debt (£18.7m). The effect is likely to be minimal, other than to those SMEs receiving a brief moratorium on debt repayment, however this is a good starting point with some banks having regard to social responsibility when realising debts in what is still a difficult financial time.
New Polish Bankruptcy Law impacts validity of Arbitration Agreements
Polish Bankruptcy Law has been amended under the Act of 5 May 2015. Before this amendment, a declaration of bankruptcy of any person who was party to an Arbitration Agreement caused expiration of the Agreement from the date of bankruptcy. In addition, any arbitration action against the bankrupt was brought to an end. Since the new law came into force on 1 January 2016, following the declaration of bankruptcy of a party to an Arbitration Agreement, the Agreement continues to be effective. Following the bankruptcy, arbitration proceedings are usually continued with the trustee in bankruptcy stepping into the position of the bankrupt.