Under government directive they would be required to provide debt holidays for existing debtors but their operating expenses would be funded by the State. It is a least worst option, a temporary relief from existing debt burdens during an extreme liquidity crisis. This is a liquidity crisis in the broader economy due to a huge sudden hit to the real economy. Our economy will fall into a deflationary hole if people and businesses are allowed to fail due to their existing debt burdens. The quickest way to prevent this is to provide immediate support to existing debt holders through a debt holiday.

Source: Otago Daily Times March 18, 2020 07:07 UTC