Debts written off, companies wound up: The downside of Qld’s COVID loans

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The Palaszczuk government is standing by its $1 billion COVID-19 Jobs Support Loan scheme, even after the Auditor-General warned it was too generous.

The Queensland government has started taking legal action to wind up companies unable to pay back loans intended to help them endure the pandemic.

A government spokesman said just over one per cent of loan recipients had entered into arrears since the end of the interest-only period.“Other recipients are ahead in their loan repayment schedule, while many others continue to make the relevant repayments on time.”But on the most recent assessment, $22,828,000 was deemed credit impaired, and another $26,724,000 high, very high or severe risk of impairment.

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