The Ministry of the Economy could spread or partially cancel the debts of companies

The Ministry of the Economy will propose “Within a few weeks a consultation and conciliation system” to spread or partially cancel corporate debts on a case-by-case basis, Bruno Le Maire said on Wednesday April 14 on the set of BFMTV.

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The Minister of the Economy admitted that there were “Companies facing a wall of debt”, not because of the loan guaranteed by the State (PGE), but because of the other loans which they can no longer repay due to their lack of activity.

“In a few weeks, I will be proposing a consultation and conciliation system which should enable all companies which are in the process of facing this wall of debt, to offer them a tailor-made solution. “

“At the Ministry of the Economy, we have all the necessary warning signals, in conjunction with the Banque de France, to find out which companies are starting to have a real debt problem”, he explained.

Case-by-case decisions

The consultation will bring together the State, the auditor, representatives of the commercial court and bankers to “Let us say on a case-by-case basis, this company is in difficulty, it is facing a wall of debt, we see the problem coming”, detailed the minister.

“We are not going to wait for the company to hit the wall, we will look at its situation, study it all together and see whether it is necessary to spread its debt, or even to cancel its debt in part. A healthy company, it must be able to survive the crisis. “

Bruno Le Maire notably cited the aeronautical SMEs which “Will rebound in two or three years but it turns out that they are in a sector of activity which is so weakened that they will not succeed”.

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According to a study published this Wednesday by the Altares firm, business failures are down 32.1% over one year in the first quarter of 2021, but 79% of judgments now lead directly to the liquidation of the company, “Unheard of for twenty years”, says the cabinet in its press release.

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