The approach to managing and implementing legal measures to assist and alleviate public debt following the COVID-19 pandemic

Abstract

Abstract

This research article has the following objectives: 1) to study the problems and impacts arising from public debt after the COVID-19 pandemic, 2) to examine the laws related to public debt after the COVID-19 pandemic, and 3) to propose approaches for managing and implementing legal measures to assist and alleviate public debt after the COVID-19 pandemic. This research is qualitative in nature, utilizing a documentary research method by studying primary and secondary documents, including policy information, legal issues, and data and statistics from various public and private sector agencies.

The research findings reveal that: 1) The problems and impacts identified include increasing public debt, a higher debt-to-income ratio on average, reduced income, and a rise in job terminations, among others. These factors have led to legal issues across various dimensions, such as breaches of contract, temporary business closures, lack of liquidity, and debtor defaults. 2) The current legal system, including substantive law such as Section 205 of the Civil and Commercial Code, does not support debtors in legal disputes. Additionally, procedural law regarding mediation does not adequately address emergency situations that impact a large number of people, as seen during the COVID-19 pandemic. 3) The proposed approaches to alleviating public debt after the COVID-19 pandemic include legal measures to amend Section 205 of the Civil and Commercial Code, revising the mediation process, increasing income, preventing or delaying disputes, long-term debt resolution, debt consolidation, supporting refinancing, asset and debt moratoriums, enhancing financial literacy and skills among the public, labor measures, and intensifying the crackdown on informal debt.