Debt Cancellation

Debt cancellation occurs when a lender forgives or waives the repayment of a loan or debt, meaning the borrower is no longer obligated to pay back the amount owed. This can happen for various reasons, such as humanitarian initiatives, economic assistance programs, or mutual agreements. It helps alleviate financial burdens, especially for individuals, countries, or entities facing hardship. While it provides immediate relief, it may also impact credit ratings or future lending terms. Overall, debt cancellation is a tool to promote economic stability and support recovery by reducing outstanding debt obligations.