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Revocable Debt Relief: Transforming a Liability into a Contingent Liability

Some limited forms of debt forgiveness and assistance have been given to families, including through moratoriums on interest payments and arrangements for no or low-consequence on default. It has also been argued that government can influence banks directly to keep lending rates low in order to avoid increased levels of bad debts and increased social harm, which can occur when the bank is government controlled or heavily bailed out.