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NEWS

Parliament Endorses Debt Relief

The National Assembly voted unanimously in favour Friday of a law granting debt relief for the poor, creating a legal basis for agreements between debtors and creditors such as utilities, insurers, banks and the revenue service.

Only debt incurred before 2014 will be eligible for write-off, while the window for signing relief agreements will be six months starting on 1 August.

 

Debtors who received welfare payments for the poorest in the first half of this year qualify for the debt relief. The Labour Ministry says about 100,000 will be eligible.

Companies typically have to pay tax bills on write-offs, but under the bill the tax liability will be waived.

 

The bill is a part of a relief package for the poor that also includes forthcoming legislation to exempt most welfare payments from debt recovery proceedings.