Bailiffs to be entitled to withdraw up to 20% from companies' budgets to execute writs
- 27.06.2008 19:16
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Bailiffs will be entitled to withdraw up to 20% from the annual budgets of companies from their bank accounts to execute writs. The parliament passed a bill modifying the law on the budget system and process in this respect, in the first reading on June 26, Info-Prim Neo reports.
The draft was developed by the Government to create levers to constrain debtors. Deputy Minister of Justice, Nicolae Esanu, explains now the executing body may sequester companies' accounts. Yet this does not compel debtors to honor their payments. As a result: many appeals to the European Court of Human Rights (ECHR) which damage the state budget of amounts larger than the ones decided by national courts.
As the new provisions enter force, the entities financed from the state budget will have six months to execute writs, and then the bailiffs will withdraw the decided amount from the debtors' account.
About 40% of the cases Moldova has lost at the ECHR are related to non-executing writs or their late execution. Thus, the Government had to pay damages of 995,943 lei in 2005, 2.666 million lei in 2006, and 3.825 million lei in 2007, reads the info-note attached to the draft.
