Covid Support for Loan Defaulters

The government has extended repayment deadlines for distressed bank loans of manufacturers for six more months, the vice president for economic affairs said. 
Restructuring bad loans was proposed by a special government taskforce set up to cope with the economic impact of Covid-19, Muhammad Nahavandian said, IRNA reported. 
The deadline was once extended to the last yearend (March 2021) but many companies were unable to pay as the coronavirus continued to unleash harm on livelihoods and business, especially SMEs. 
As per the decision, all legal and natural persons in default have until September 21 to meet their financial commitments.
The restructuring is for natural persons whose arrears don't exceed 5 billion rials and for legal entity debtors with maximum arrears of 20 billion rials. 
Backed by legislation in July 2019, the deadline has been postponed for the third time. Back then the Majlis decided to cancel compound interest on non-performing loans. The law initially covered loans that matured end of fiscal 2019-20 and debtors were initially given until the end of that year to repay their dues.
The Majlis Research Center, the influential research arm of the parliament, said many manufactures had either downed their shutters or were on the verge of insolvency due to the back-breaking bank liabilities, high interest rates plus penalties. 
Over the years companies unable to repay their debts were disqualified from new credit. The restructuring is expected to  help rescue banks saddled with mountains of bad debts and NPLs.