IMF Urges Governments To Help The Virus-Hit Firms
Gita Gopinath, International Monetary Fund Chief Economist has urged the government all around the world to support the firms which are hit by a coronavirus and their growth has plunged. This help can be “equity-like†support rather than loans to control the long-lasting damage to companies. “Because there’s a bigger insolvency issue here, government support […] The post IMF Urges Governments To Help The Virus-Hit Firms appeared first on Nation Bytes.
Gita Gopinath, International Monetary Fund Chief Economist has urged the government all around the world to support the firms which are hit by a coronavirus and their growth has plunged. This help can be “Monetary Fund Chief Economist” support rather than loans to control the long-lasting damage to companies.
“Because there’s a bigger insolvency issue here, government support would have to shift more towards being equity-like as opposed to debt-like. Otherwise, you would end up with a lot of firms that exit this crisis with a huge amount of debt over-hang,” she said.
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The loan financing will leave the firms in huge debts which will hinder their growth and will stop them from getting on track again.
The post IMF Urges Governments To Help The Virus-Hit Firms appeared first on Nation Bytes.
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