If no government continues to support thousands of Australian businesses will close in a few weeks
As the federal government promised to formulate a budget plan to get the Australian economy out of recession, experts from the corporate credit reporting agency said that unless they can continue to receive government support, thousands of companies will go bankrupt in a few weeks.
According to the Sydney Morning Herald, the bankruptcy liquidation company is preparing for a surge in the number of bankrupt companies at the end of this month.
Currently, the federal government is considering delaying the deadline for companies to conduct transactions in the event of insolvency.
According to data from CreditorWatch, the company responsible for managing credit reports for all commercial companies in Australia, the government's support for companies during the epidemic, including billions of Australian dollars in government stimulus and wage subsidies, has led to a significant reduction in the number of bankrupt companies, even less than last year. Over the same period. In the latest data for July, the number of Australian corporate bankruptcies fell by 7% year-on-year.
Although some companies continue to operate with government support, CreditWatch President Patrick Coghlan warned that about 2500 companies will not survive, and "this is considering that we are at the worst in 90 years. "Before the recession" estimate.
He said that usually 8000 to 9000 companies enter the bankruptcy liquidation management in a year, and this number has not yet been reached. "In the end, all these companies and those companies that are severely affected by the virus need to be liquidated management."
Federal Treasury Secretary Josh Frydenberg said this week that the government is now considering extending support for temporarily troubled businesses. "As the economy begins to recover, it is vital that troubled companies have the necessary flexibility to reorganize or close their business in an orderly manner to ensure that operating assets are used effectively."
The federal government is expected to include a business investment subsidy program in its October budget to help the economy recover.
The Business Council of Australia (BCA) recently recommended a 20% investment subsidy for all businesses to give them confidence in investing and creating jobs. ◇
Editor in charge: Zong Minqing