For two and a half years now, I have been pointing out that the term of the coronavirus bridging loans is too short due to the subsequent crises (Ukraine, supply chains, inflation, etc.) and that many perfectly healthy companies will not be able to repay these loans in the allotted time.

The Austrian federal government would have had the option under EU law to extend the term to up to ten years - most other EU states have done so! In several personal conversations, I had the opportunity to draw the attention of those responsible to the situation that is currently being described in the media. Ignorance would still be the most harmless reaction.

It is to be feared that we will see a wave of insolvencies in August and September, combined with a high number of job losses. In addition, the state, i.e. we taxpayers, will have to pay the liabilities that fall due with our money. It will be exciting to see how they will talk their way out of this ...

As experts, we at SGS Management are looking for solutions that can be implemented by companies in the short term and help to secure as many livelihoods as possible.

Wave of insolvencies due to corona loans? Companies are struggling with the... | DiePresse