MORATORIUM ON BANKRUPTCY MAY BE EXTENDED

The Ministry of Economic Development announces the possibility of extension of the moratorium on bankruptcy, introduced in Russia from April 6. The discussion of this issue took place at a regular meeting in the ministry, during which the representatives of the authorities discussed the results of the measures taken six months ago.

According to the relevant information, a six-month ban on the recognition of companies as insolvent allowed more than half a million companies to “survive” and helped 1.5 million private entrepreneurs to stay afloat.

The exceptional nature of the moratorium was once again emphasized by the Deputy Minister of Economic Development Ilya Torosov. However, according to him, it is necessary to carefully go for the subsequent extension of such measures - saving some of the companies may become a “trial shot” for others.

The ministry drew attention to the presence of systemic risks that affect the difficulties of creditors in receiving payments from potential bankruptcy candidates.

At the same time, one cannot fail to note the positive changes that were influenced by the introduction of the moratorium. It turned out that the budget revenues from many debtor organizations, which could have gone bankrupt in the absence of a moratorium, only increased. This was clearly demonstrated by the total amount of personal income tax received over the past period.

The ministry promises to analyze all the data, obtained during the meeting, and prepare a special report for the Government. The report will influence the extension of the moratorium (if a positive decision is made). We should recall that the current six-month period of measures to combat the consequences of the pandemic ends on October 6, 2020.