Government Extends Accounting Moratorium Amid Pandemic Aftershocks
The government has extended the accounting moratorium for two more years to shield companies from immediate liquidation during the continued economic dip caused by the pandemic. This pause gives firms breathing room so they can reorganize and avoid forced bankruptcies as balance sheets remain stressed. The extension covers 2023 and 2024, allowing viable businesses to stabilize without facing abrupt insolvency decisions. [Citation: Government policy briefing; attribution to official channels]
One key measure is to exclude 2020 and 2021 losses from the calculations used to determine which companies must declare bankruptcy due to asset and liability imbalances. This approach aims to provide time for solid, solvent companies to rebalance their finances. The strategy, discussed by the Vice President and Minister of Economy, Nadia Calviño, in an interview with RAC1, emphasizes creating space for recovery without sacrificing long-term viability. [Citation: Ministerial remarks; attribution to official interview]
The extended moratorium acts as a rescue balloon for sectors hit hardest by the pandemic, especially tourism. Mobility restrictions disrupted travel and related activities, placing airlines, tour operators, and travel agencies at acute risk. Government confirmations indicate concerns about a sharp cliff at year end if this financial lifeline ends, potentially triggering a wave of bankruptcies across tourism-linked firms. [Citation: Government briefing; attribution to official sources]
Calviño underscored that the balance sheets of many tourism and transport entities remain unstable. For firms capable of meeting obligations, forcing bankruptcy would be counterproductive given the strong demand that often characterizes tourism campaigns. Sectors most affected by the pandemic include tourism, transportation, and lodging, all of which recorded significant losses in 2020 and 2021 despite aid measures. The extension seeks to preserve viable operations while maintaining market resilience. [Citation: Policy remarks; attribution to official channels]
Under existing law, accumulating losses can trigger dissolution when net worth falls below half of capital. Given the heavy losses from the pandemic’s early years, tourism and transportation firms face heightened bankruptcy risk. The government will continue to permit exemptions for 2020 and 2021 losses as a factor in bankruptcy decisions, offering critical time for recalibration rather than immediate collapse. [Citation: Legal framework notes; attribution to official sources]