12 Jan 2023 13:49

No prerequisites for imposition of new bankruptcy moratorium - First Dep Econ Minister Torosov

MOSCOW. Jan 12 (Interfax) - There are currently no prerequisites for the introduction of a new moratorium on bankruptcy, including a partial one, First Deputy Economic Development Minister Ilya Torosov told reporters.

"The mechanism was introduced in a timely fashion and cancelled in a timely fashion as well. Now there are no prerequisites for its introduction," he said when asked if there were any plans to apply it selectively in the future.

According to Torosov, the bankruptcy moratorium played its role and protected business and citizens amid turbulence in the economy.

A moratorium on bankruptcy and the collection of old debts was in effect in Russia from April 1 to October 1, 2022. It applied to practically everyone, with the exception of developers whose properties had previously been put on the list of problem buildings. The government took such a step in order to allow these individuals to adapt to the new conditions and prevent unjustified bankruptcy of debtors who had encountered temporary difficulties due to volatility in the markets.

In the fall, the government did not extend the moratorium even partially, although officials allowed this option as part of the discussion. In September, a source told Interfax that First Deputy Prime Minister Andrei Belousov had instructed the Economic Development Ministry, the Industry and Trade Ministry, the Transport Ministry, the Construction Ministry, the Agriculture Ministry and the Health Ministry to continue monitoring the current economic situation "with the aim of promptly introducing a moratorium on the institution of bankruptcy proceedings" against legal entities engaged in certain activities or against certain categories or a range of persons.