Centre plans debt waiver for small distressed borrowers under insolvency law

The government plans to give debt waiver for small distressed borrowers under the insolvency law framework. The proposed waiver would be offered as part of 'Fresh Start' provisions under the Insolvency and Bankruptcy Code (IBC).  

Corporate Affairs Secretary Injeti Srinivas said,



discussions have been held with the microfinance industry regarding criteria for the proposed waiver for small distressed borrowers from the economically weaker section.  The IBC provides the framework to deal with distressed assets through a market-driven and time-bound process.