This proposal appears to have failed to consider that many lenders may not survive the burden of consolidated bad debts, particularly individual operational debtors.
The Ministry of Finance is considering suspension of insolvency proceedings for six months from April 30, 2020, to extend relief to corporate borrowers affected by the pandemic. Recently, the Cabinet approved the six-month proposal, extendable up to one year, by introducing an enabling provision in the form of an ordinance.
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