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flag New Zealand businesses face loan defaults as COVID-19 relief repayment deadline looms.

flag The deadline for repaying COVID-19 business loans in New Zealand is approaching. flag Introduced in May 2020, the Small Business Cashflow (SBC) loans scheme provided over $2.4 billion to more than 129,000 businesses. flag With an average loan of $17,000, businesses had five years to repay without initial interest but faced a 3% interest rate after two years. flag If unpaid by June, loans will default, adding a 10.88% interest rate. flag Currently, $953 million is still owed, with 10,000 loans in default amounting to $161 million.

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