Regarding the insolvency criteria, the draft law lists enterprises failing to repay due debts and failing to repay all debts with their assets (in evident insolvency) both as tests for insolvency, which will undoubtedly impose negative impact on the protection of the claims of financial institutions.
Giving priority to employee entitlements over secured debts, which increases the difficulties for the recourse of banking claims and lowers the recovery ratio of non-performing assets, will weaken the ability of financial institutions to dispose of non-performing assets and lead to financial risks.