Due date for Covid loans for small businesses to be extended: The DONG-A ILBO

Financial support under the Covid-19 pandemic for small business owners and small and medium-sized enterprises (SMEs) will likely be extended for another round. Discussions are underway to extend the maturity of the loan to three years and defer repayment of principal and interest by one year.

According to experts in financial circles, the Financial Services Commission (FSC) has indeed decided to extend the maturity again and postpone the repayment of principal and interest of the loan for small business owners and SMEs, which was to be exterminated. at the end of this month. The FSC’s latest decision appears to be largely affected by a call from President Yoon Suk-yeol and lawmakers for financial measures to ease the debt burden of small businesses amid soaring inflation and interest rates. of interest.

A detailed approach is currently being discussed among the authorities, extending the loan maturity by three years and postponing debt and interest repayment for one year to avoid a mass loan failure. This approach will allow debtors to choose between extending the maturity, deferring repayment or restructuring the debt, depending on their financial flexibility. For debt restructuring, the 30 trillion won New Start Fund will be launched next month and other support programs will be tapped.

The debt extension and deferral programs have been in place since April 2020 to support small business owners affected by the Covid-19 pandemic, and they have been extended four times every six months. If the programs are extended again, this will mark the fifth. At the end of January, the extended and deferred debt currently stood at around 133.3 trillion won for 704,000 cases. The FSC plans to confirm the extension early next week after consulting relevant ministries and the financial community.

Do-Hyong Kim [email protected]

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