Debt Relief in the Pandemic: Lessons from India, Peru, and Uganda

Categories : Customer and Users of Digital Payments, Microfinance credit savings and insurance

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Author: CGAP

The widespread use of debt moratoria in response to the COVID-19 health and economic emergencies has succeeded in stabilizing financial systems and given borrowers all over the world immediate, if temporary, relief. Financial regulators in at least 115 countries in March and April 2020 issued special permission for financial services providers (FSPs) to provide moratoria and other debt restructuring, unleashing an extraordinary effort to reprocess millions and millions of loans.

This Briefing by CGAP examines how the debt moratoria unfolded in three countries – India, Peru and Uganda – to better understand the impact on consumers, especially low-income borrowers, and the tradeoffs regulators and FSPs made between achieving financial stability and meeting consumers’ needs.