COVID-19 Special Coverage
Switzerland to amend bankruptcy laws to aid companies during COVID-19 pandemic
marcelkessler / Pixabay
Switzerland to amend bankruptcy laws to aid companies during COVID-19 pandemic

The Swiss government announced Thursday that it will look at temporarily amending its bankruptcy laws during the coronavirus crisis to help companies that have encountered cash-flow problems and mounting debt.

The government warned on Wednesday that the Swiss economy could shrink as much as 10.4 percent this year. Justice minister Karin Keller-Sutter said that companies that were previously safe are now being threatened.

The measures are meant to help companies hurt by coronavirus “over the hump,” but not to keep “failing operations on life support.” The measures are also meant to help Switzerland’s exporters, which are being impacted due to a failing demand from other countries.

The government said that a halt on debt collections and a court holiday would end on April 19, and that it would look at moving civil court proceedings to a teleconference platform to maintain the operation of the justice system.