Treasurer Josh Frydenberg and his department, financial regulators, banks, business groups and insolvency practitioners are consulting on the planned roll-off of the measures.
One suggestion has been to extend by a few months the moratorium on directors being liable for insolvent trading, or to prolong the time companies have to respond to demands from creditors and to appoint administrators.
Banks have been contacting borrowers to see if they can resume their repayments before September.
APRA capital relief
The Australian Prudential Regulation Authority granted banks temporary capital relief for the deferred loans, rather than forcing banks to incur capital losses against the potential bad loans.
With banks poised to extend loan repaym…
Read the full article at: https://www.afr.com/policy/economy/potential-avalanche-of-small-company-wind-ups-looms-20200514-p54sxv
