PARIS: Governments around the world are scrambling to save companies battered by coronavirus lockdowns, but the world is nevertheless facing a massive surge in bankruptcies by a third, a study conducted by a trade insurance firm said on Monday. The insolvencies are disruptive as other firms are left unpaid or forced to scramble to find new, often more expensive suppliers. “The larger the company filing for bankruptcy, the higher the risk of a domino effect,” said the report. A premature withdrawal of supportive economic and policy measures could push the rise in insolvencies to 40 to 45 percent. “And if the global economic recovery takes longer than expected, the surge” in insolvencies could rise to as high as 85 to 95 percent, it added.

Source: Manila Times July 20, 2020 16:52 UTC