fbpx

Firms face £61bn coronavirus pandemic debts

Firms face £61bn coronavirus pandemic debts

Companies will rack up 'colossal' pandemic debts of £61billion that many will not start repaying for years, according to EY Item Club forecasts. 

MARKET REPORT: Shares in Babcock plunge by one fifth
Bitcoin hits record high after Musk ploughs £1.1bn into cryptocurrency
Ocado warns customers to expect ‘missing items’ on online deliveries due to shortages

Companies will rack up ‘colossal’ pandemic debts of £61billion that many will not start repaying for years, according to EY Item Club forecasts. 

Banks lent businesses almost £35billion between March and December 2020, – almost four times the £9billion handed out in 2019. 

They are expected to lend a further £26billion in 2021. But many companies will not begin to make repayments until 2024, and are at risk of going bust if there is a longer than expected economic recovery, EY Item Club warned. 

Under pressure: Many companies will not begin to make repayments until 2024, and are at risk of going bust if there is a longer than expected economic recovery

Under pressure: Many companies will not begin to make repayments until 2024, and are at risk of going bust if there is a longer than expected economic recovery

Under pressure: Many companies will not begin to make repayments until 2024, and are at risk of going bust if there is a longer than expected economic recovery

Anna Anthony, UK financial services managing partner at EY, said: ‘By the end of this year, businesses will have borrowed in the region of £60billion net since the start of the pandemic, which is a colossal amount, especially as for many it is just about survival. 

‘And the prospect of some, if not many firms, not being able to make the required repayments is concerning for all involved.’ 

As well as normal bank lending, the Government has also backed Covid-specific financial assistance.

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

This post first appeared on Dailymail.co.uk

Do You Enjoy This Article?
Sign up for our newsletter and receive FREE access to download SuccessDigest Digital Weekly Edition for attainment of your financial freedom in the new digital economy!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.

COMMENTS

WORDPRESS: 0
DISQUS:
%d bloggers like this: