Financing Firms in Hibernation During the COVID-19 Pandemic

Didier, Tatiana ; Huneeus, Federico ; Larrain, Mauricio ; Schmukler, Sergio L.

World Bank, Washington, DC

关键词: SMALL AND MEDIUM-SIZED ENTERPRISES;    ACCESS TO FINANCE;    PUBLIC FINANCE;    DEBT;    COVID-19;   

RP-ID  :  147598

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The coronavirus (COVID-19) pandemic hasimposed a heavy toll on economies worldwide, nearly haltingeconomic activity. Although most firms should be viable wheneconomic activity resumes, cash flows have collapsed,possibly triggering inefficient bankruptcies with long-termdetrimental effects. Firms' valuable relationships withworkers, suppliers, customers, governments, and creditorscould be broken. Hibernation could slow the economy untilthe pandemic is brought under control and preserve thosevital relationships for a quicker recovery. If allstakeholdersshare the burden of economic inactivity, firmsare more likely to survive. Financing could help coverfirms' reduced operational costs until the pandemicsubdues. But financial systems are not well equipped tohandle this type of exogenous and synchronized systemicshock. Governments could work with the financial sector tokeep firms afloat, enabling forbearance as needed andabsorbing part of the firms' increased credit risk, byimplementing policies with proper incentives to keep firms viable.