Ireland: New debt forgiveness scheme could save SMEs battered by the downturn

According to the Irish Independent, a debt-forgiveness scheme for small and medium enterprises (SMEs) battered by the crash is among proposals to be examined by a high-level working group being set up by the Government. Banks will be asked to cancel some company debts in exchange for shares in even small firms if the debt-for-equity proposal is taken up, according to sources close to the process. The radical plan is seen as one possible way to salvage the balance sheets of small businesses battered by the debt bubble and subsequent seven-year crash.