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India plans to suspend new bankruptcy filings for a year
Business

India plans to suspend new bankruptcy filings for a year

India won’t allow most companies to be tipped into bankruptcy for a year as authorities try to contain the economic fallout of the coronavirus outbreak.Finance Minister Nirmala Sitharaman announced the plan Sunday as part of her speech to revive economic activity. Also, the minimum threshold to initiate insolvency proceedings have been raised to 10 million rupees ($132,000) from 100,000 rupees previously, and will largely insulate small businesses, she said.The move risks delaying the clean up of the world’s worst stressed-loan ratio as creditors will be forced into lengthy debt resolution negotiations outside the bankruptcy framework. It may also slow fresh credit that’s vital to reverse the course of an economy set for a rare contraction as the pandemic stalls economic a...