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    60% JOBS SAVED DURING BANKRUPTCY PROCEDURES LAST YEAR

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    MOSCOW, February 24, 2004. (RIA Novosti correspondent) - Last year up to 60 percent of jobs were saved during bankruptcy procedures, head of the Federal Financial Recovery and Bankruptcy Service Tatiana Trefilova announced, when speaking at a conference devoted to the first anniversary since the new law on bankruptcy had come into force.

    "Even during bankruptcy proceedings (sale of enterprises' property) we managed to preserve up to 60 percent of business and to transfer it to other enterprises. Thus, we saved up to 60 percent of jobs," she pointed out. According to her, "the quotient of property sale reached 40 percent".

    "The new law has given the state an opportunity to influence the bankruptcy procedure," Trefilova pointed out. In her opinion, this law is fairer towards the debtors, who were "the most unprotected" among all participants of the process.

    The new law has radically changed the situation with paying off creditors' money. At the same time, the problem of intentional bankruptcy and of financial recovery of enterprises has still not been solved, Trefilova admitted.

    According to her, up to 70-80 percent of property is brought outside enterprises, especially at defense and other state enterprises. "The property disappears, while debts in taxes to the state remain," she emphasized.

    In this context she considers it necessary "not to be afraid" to start the bankruptcy procedure earlier, not when enterprises have not paid taxes for 3 or 4 years and have accumulated an enormous debt.

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