Debt Default, Recovery and Resolution in a Pandemic: What to Expect in the New Normal

Insolvency and Bankruptcy Regime in India: A Narrative, 2020

6 Pages Posted: 27 Oct 2020

See all articles by Bhargavi Zaveri

Bhargavi Zaveri

Independent; National University of Singapore

Date Written: October 1, 2020

Abstract

This article critically analyses three sets of developments in India in connection with standstills and forbearance during the pandemic. First, the moratorium imposed by the Reserve Bank of India (RBI), as the banking regulator, on the recovery of debt by banks and NBFCs. Second, the temporary suspension of the Insolvency and Bankruptcy Code, 2016 (IBC) in its entirety, and third, forbearance offered through court judgements. How will these forbearance measures affect the state of debt recovery in India? Will they impact all kinds of borrowers and credit segments equally? What will their impact be on credit discipline and overall contract enforcement in India? This article attempts to unravel the seen and unseen effects of these developments for the credit market in India.

Keywords: bankruptcy, COVID, debt recovery, forbearance

JEL Classification: G00, G01, G18, G19

Suggested Citation

Zaveri, Bhargavi, Debt Default, Recovery and Resolution in a Pandemic: What to Expect in the New Normal (October 1, 2020). Insolvency and Bankruptcy Regime in India: A Narrative, 2020, Available at SSRN: https://ssrn.com/abstract=3716169

National University of Singapore ( email )

469G Bukit Timah Road
Singapore, 259776
Singapore

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
97
Abstract Views
274
Rank
403,595
PlumX Metrics