Download This PaperCOVID-19 Economic Downturn - The Implication for Corporate Debts and Recovery Actions in Nigeria
10 Pages Posted: 24 Apr 2020
Date Written: April 22, 2020
Abstract
The novel coronavirus disease (code-named ‘COVID-19’) has taken the world by storm, spreading like a wildfire. Major cities around the world are in a lockdown as a result of which businesses have closed down. This portends a great danger for borrowers and lenders as incidences of Non-Performing Loans are on the increase. It has therefore become necessary to interrogate and forecast what the behavior of lenders and borrowers would and should be in dealing with disputes and litigation that would attend the end of COVID-19.
What are the available legal options for creditors whose depositors funds may become intractable due to the COVID-19 pandemic? What are the options for lenders whose businesses are in near comatose? Should the lenders hit the court immediately the pandemic subsides? Should the lenders wait a bit to let the dust settle? What is the probative value of pleading frustration or force majeure? These are some of the questions this article sets out to answer.
Keywords: COVID-19, Debt Recovery, Debt Recovery Actions, Non-Performing Loans, Corporate Debt, Option for Lenders, Recourse to Legal Proceedings
JEL Classification: K12, K0, I15, E31
Suggested Citation: Suggested Citation