SMALL AND MEDIUM-SIZED BUSINESSES WILL BENEFIT FROM SPECIAL DEBT REPAYMENT INSTALLMENT PLAN

17/07/2020

 

The Federal Council (the higher parliament chamber) approved a law on the specifics of enforcement proceedings and debt recovery during the pandemic period. An installment plan for debts repayment will be provided, should enforcement proceedings be initiated based on a document presented before October 1, 2020.

Companies and individual entrepreneurs will qualify for such support if:

• they were listed as a small/medium-sized enterprise as of March 1, 2020;
• their main activity according to the relevant Unified State Register records as of March 1, 2020, refers to the most affected industries;

An exception will be made for debtors who are subject to a bankruptcy moratorium. The installment plan can be obtained in relation to property claims for an amount not exceeding 15 million rubles. The installment period shall not exceed 12 months and end later than August 1, 2021.

The law will come into force on the day of its official publication.

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