NEW DELHI (Reuters) - The Indian government on Thursday said it had extended a suspension of bankruptcy filings until December, a decision aimed at helping businesses stay afloat amid the coronavirus pandemic.
The suspension on bankruptcy proceedings stops banks from initiating insolvency proceedings against any borrower for defaults arising on or after March 25, 2020.
The latest extension is effective until Dec. 25.
Finance Minister Nirmala Sitharaman in a tweet said that the move underlined the government’s commitment to protecting businesses.
“It also gives companies breathing time to recover from financial stress,” Sitharaman said.
India’s economy shrank by nearly a quarter in April-June, much more than forecast, and pointing to a difficult recovery in the aftermath of a strict COVID-19 lockdown.
Reporting by Aftab Ahmed; editing by David Evans
Our Standards: The Thomson Reuters Trust Principles.