Policy Options For Supporting And Restructuring Firms Hit By The Covid 19 Crisis

Author : Ms. Juliana Dutra Araujo
Publisher : International Monetary Fund
ISBN 13 : 1513593463
Total Pages : 79 pages
Book Rating : 4.63/5 ( download)

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Download or read book Policy Options for Supporting and Restructuring Firms Hit by the COVID-19 Crisis written by Ms. Juliana Dutra Araujo and published by International Monetary Fund. This book was released on 2022-02-23 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents principles that could guide the design of more targeted policy support and facilitate the restructuring of firms adversely impacted by the COVID-19 pandemic. To this end, the paper takes stock of vulnerabilities and risks in the enterprise sector and assesses countries’ preparedness to handle a large-scale restructuring of businesses. Crisis preparedness of insolvency systems is measured according to a newly designed indicator that includes five dimensions of the insolvency and restructuring regime (out-of-court restructuring, hybrid restructuring, reorganization, liquidation, and the institutional framework). Vulnerabilities tend to be more pronounced in jurisdictions with shortcomings in crisis preparedness, and those countries need to step up efforts to improve their insolvency systems.

Author : Mr. Thierry Tressel
Publisher : International Monetary Fund
ISBN 13 : 1513590820
Total Pages : 54 pages
Book Rating : 4.20/5 ( download)

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Download or read book Global Corporate Stress Tests—Impact of the COVID-19 Pandemic and Policy Responses written by Mr. Thierry Tressel and published by International Monetary Fund. This book was released on 2021-08-06 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate sector vulnerabilities have been a central policy topic since the outset of the COVID-19 pandemic. In this paper, we analyze some 17,000 publicly listed firms in a sample of 24 countries, and assess their ability to withstand shocks induced by the pandemic to their liquidity, viability and solvency. For this purpose, we develop novel multi-factor sensitivity analysis and dynamic scenario-based stress test techniques to assess the impact of shocks on firm’s ability to service their debt, and on their liquidity and solvency positions. Applying the October 2020 WEO baseline and adverse scenarios, we find that a large share of publicly-listed firms become vulnerable as a result of the pandemic shock and additional borrowing needs to overcome cash shortfalls are large, while firm behavioral responses and policies substantially help overcome the impact of the shock in the near term. Looking forward, while interest coverage ratios tend to improve over time after the initial shock as earnings recover in line with projected macroeconomic conditions, liquidity needs remain substantial in many firms across countries and across industries, while insolvencies rise over time in specific industries. To inform policy debates, we offer an approach to a triage between viable and unviable firms, and find that the needs for liquidity support of viable firms remain important beyond 2020, and that medium-term debt restructuring needs and liquidations of firms may be substantial in the medium-term.

Author : Mr.Federico J Diez
Publisher : International Monetary Fund
ISBN 13 : 1513574566
Total Pages : 29 pages
Book Rating : 4.61/5 ( download)

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Download or read book Insolvency Prospects Among Small-and-Medium-Sized Enterprises in Advanced Economies written by Mr.Federico J Diez and published by International Monetary Fund. This book was released on 2021-04-02 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: The COVID-19 pandemic has increased insolvency risks, especially among small and medium enterprises (SMEs), which are vastly overrepresented in hard-hit sectors. Without government intervention, even firms that are viable a priori could end up being liquidated—particularly in sectors characterized by labor-intensive technologies, threatening both macroeconomic and social stability. This staff discussion note assesses the impact of the pandemic on SME insolvency risks and policy options to address them. It quantifies the impact of weaker aggregate demand, changes in sectoral consumption patterns, and lockdowns on firm balance sheets and estimates the impact of a range of policy options, for a large sample of SMEs in (mostly) advanced economies.

Author : Mr.Christian H Ebeke
Publisher : International Monetary Fund
ISBN 13 : 1513570919
Total Pages : 48 pages
Book Rating : 4.14/5 ( download)

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Download or read book Corporate Liquidity and Solvency in Europe during COVID-19: The Role of Policies written by Mr.Christian H Ebeke and published by International Monetary Fund. This book was released on 2021-03-02 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: The spread of COVID-19, containment measures, and general uncertainty led to a sharp reduction in activity in the first half of 2020. Europe was hit particularly hard—the economic contraction in 2020 is estimated to have been among the largest in the world—with potentially severe repercussions on its nonfinancial corporations. A wave of corporate bankruptcies would generate mass unemployment, and a loss of productive capacity and firm-specific human capital. With many SMEs in Europe relying primarily on the banking sector for external finance, stress in the corporate sector could easily translate into pressures in the banking system (Aiyar et al., forthcoming).

Author : International Monetary Fund. Strategy, Policy, & Review Department
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 179 pages
Book Rating : 4.49/5 ( download)

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Download or read book Operational Guidance Note On Program Design and Conditionality written by International Monetary Fund. Strategy, Policy, & Review Department and published by International Monetary Fund. This book was released on 2024-01-30 with total page 179 pages. Available in PDF, EPUB and Kindle. Book excerpt: This note aims to provide guidance on the key principles and considerations underlying the design of Fund-supported programs. The note expands on the previous operational guidance notes on conditionality published over 2003-2014, incorporating lessons from the 2018-19 Review of Conditionality, and other recent key policy developments including the recommendation of the Management’s Implementation Plan in response to Independent Evaluation Office (IEO)’s report on growth and adjustment in IMF-supported programs. The note in particular highlights operational advice to (i) improve the realism of macroeconomic forecast in programs and fostering a more systematic analysis of contingency plans and risks; (ii) improve the focus, depth, implementation, and tailoring of structural conditions (SCs), with due consideration of growth effects; and (iii) help strengthen the ownership of country authorities. Designed as a comprehensive reference and primer on program design and conditionality in an accessible and transparent manner, the note refers in summary to a broad range of economic and policy considerations over the lifecycle of Fund-supported programs. As with all guidance notes, the relevant IMF Executive Board Decisions remain the primary legal authority on matters covered in this note.

Author : International Monetary Fund. Asia and Pacific Dept
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 44 pages
Book Rating : 4.16/5 ( download)

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Download or read book Thailand written by International Monetary Fund. Asia and Pacific Dept and published by International Monetary Fund. This book was released on 2022-09-16 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Selected Issues

Author : International Monetary Fund
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 100 pages
Book Rating : 4.41/5 ( download)

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Download or read book Fiscal Monitor, October 2022 written by International Monetary Fund and published by International Monetary Fund. This book was released on 2022-10-12 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt: The report explores how fiscal policy can foster resilience by protecting households against large income and employment losses. Governments face increasingly difficult trade-offs in tackling the spikes in food and energy prices when policy buffers are largely exhausted after two years of pandemic. They should prioritize protecting vulnerable groups through targeted support while keeping a tight fiscal stance to help reduce inflation. Building fiscal buffers in normal times would allow governments to respond swiftly and flexibly during adversities. Several fiscal tools, such as job-retention schemes, have proven useful to preserve jobs and income for workers. Social safety nets should be made more readily scalable and better targeted, leveraging digital technologies. Exceptional support to firms should be reserved for severe situations and requires sound fiscal risk management.

Author :
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 135 pages
Book Rating : 4.88/5 ( download)

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Download or read book written by and published by International Monetary Fund. This book was released on with total page 135 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Dimitrios A Karras
Publisher : Taylor & Francis
ISBN 13 : 1040001777
Total Pages : 385 pages
Book Rating : 4.76/5 ( download)

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Download or read book Advancements in Business for Integrating Diversity, and Sustainability written by Dimitrios A Karras and published by Taylor & Francis. This book was released on 2024-03-01 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is the collection of selected articles that appeared at the First International Analytics Conference 2023 held in Hyderabad in virtual mode on February 2nd the 3rd 2023. In the fast-paced, ever-changing world of business, the pursuit of diversity and sustainability has emerged as a dynamic catalyst for progress. This illuminating volume takes you on a journey through the evolving realm of business, where innovative approaches are redefining corporate strategies and values.

Author : Lucyna Gornicka
Publisher : International Monetary Fund
ISBN 13 : 1589065875
Total Pages : 31 pages
Book Rating : 4.71/5 ( download)

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Download or read book Corporate Sector Resilience in India in the Wake of the COVID-19 Shock written by Lucyna Gornicka and published by International Monetary Fund. This book was released on 2021-11-19 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: To assess the resilience of India’s corporate sector against COVID-19-related shocks, we conducted a series of stress tests using firm-level corporate balance sheet data. The results reveal a differential impact across sectors, with the most severe impact on contact-intensive services, construction, and manufacturing sectors, and micro, small, and medium enterprises. On policy impact, the results highlight that temporary policy measures have been particularly effective in supporting firm liquidity, but the impact on solvency is less pronounced. On financial sector balance sheets, we found that public sector banks are more vulnerable to stress in the corporate sector, partly due to their weaker starting capital positions. When considering forward-looking multiperiod growth scenarios, we find that the overall corporate performance will depend on the speed of recovery. A slower pace of recovery could lead to persistently high levels of debt at risk, especially in some services and industrial sectors.