BRUSSELS — The European Union is facing a surge in bankruptcies and bad loans once the post-pandemic economic recovery starts to take hold and governments begin withdrawing state schemes that are keeping many firms on life support, a EU document indicates.
The European Commission note, prepared for euro zone finance ministers’ talks on Monday, said that thanks to almost 2.3 trillion euros ($2.8 trillion) in national liquidity support measures, euro zone governments have so far staved off a rise in insolvencies.
Without such help and new loans from banks, almost a quarter of EU companies would have had liquidity problems by the end of 2020 after exhausting their cash buffers b…
Keep on reading: EU faces bankruptcies, bad loans as COVID-19 help for firms ends — document