Sumary of Help For Small And Medium Businesses Key To Avoiding Bankruptcy Wave, IMF Warns:
- Yuri Gripas/Abaca/Bloomberg © 2021 Bloomberg Finance LP Government support for small- and medium-sized businesses will be crucial to preventing a wave of insolvencies that could threaten a new wave of unemployment, according to new research from the International Monetary Fund..
- “The pandemic is projected to boost the share of insolvent small and medium enterprises from 10 percent to 16 percent in 2021 across 20 mostly advanced economies in Europe and the Asia-Pacific region,”.
- In a downside scenario with extended lockdowns and persistently weaker demand, the share of insolvent SMEs would rise by 8 percentage points.”.
- “Rising small and medium enterprise insolvencies could trigger defaults and cause significant write-offs, depleting banks’ capital,”…