Government extends Business Debt Hibernation scheme

Published: 01 December 2020

The Government is extending the Business Debt Hibernation (BDH) scheme by 10 months to 31 October 2021.

BDH was introduced earlier this year as part of temporary relief measures aimed at helping businesses cope with the economic impacts of COVID-19. It allows businesses struggling financially due to COVID-19 to put their existing debt on hold for up to seven months, provided they meet criteria. Once a business is in BDH, this places a moratorium on the business’s creditors being able to take enforcement action.

The scheme was due to end on 24 December 2020, but the Government is extending it to assist with New Zealand’s COVID-19 economic recovery.  

Read the Beehive media release(external link).

Find out more about the BDH scheme(external link).

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