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Failures due to Corona: shop window of a shop that had to close due to the pandemic.
Foto: Getty Images/iStockphoto
By the end of October, there were 17 percent to 20 percent fewer bankruptcy proceedings due to payment difficulties in Switzerland in the last two years than in the same period in 2018 and 2019. Obviously, the state support services – short-time work, bridging loans and hardship programs – have served their purpose: Many companies have survived the officially ordered closings.
But this also increases the risk that so-called zombie companies will slow down economic development. The state pandemic support totaling around CHF 44 billion has also initially saved at least 1,000 Swiss companies from bankruptcy that would not have survived without the pandemic, estimates the auditing and consulting firm KPMG. “This only delays structural change, but it is ultimately inevitable,” says Peter Dauwalder, Head of Restructuring at KPMG. “As soon as the support measures expire and the loans are due, a major wave of bankruptcies can be expected,” said Dauwalder.
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