MNI BRIEF: 'Wave' Of Firms Could Go Bust, ESRB Report Warns

Failure to transition smoothly from COVID-19 crisis liquidity support to targeted solvency support and debt restructuring could trigger a wave of insolvencies across European Union member states, a report by the European Systemic Risk Board has concluded. So far there has been little sign of financial instability, the ESRB report found, despite more than a year of lockdown measures financial instability.

However, corporate debt levels have risen significantly, with many non-financial corporations experiencing "enormous" financial strain due to the coronavirus pandemic. MNI has previously reported that the EU is considering hiring investments banks to help identify those companies deserving of continued public aid.