The government will continue for two more years The life jacket that companies started at the beginning of the pandemic so that they can get rid of the necessity of putting their liquidation into action despite the imbalances in their balance sheets. due to the losses caused by the economic slowdown due to covid. Management will extend the accounting moratorium until 2024 so that companies are not forced to continue operating and go bankrupt due to losses in the first two years of the pandemic.
“One of the measures we have taken from the beginning was to subtract the losses of 2020 and 2021 from the determination of companies that had to declare bankruptcy because there was a huge imbalance between assets and liabilities. In 2023 and 2024, we will extend it for another two years to give all viable and solvency companies more time. to rebalance their balance sheets,” he said. Vice President and Minister of Economy, Nadia Calviño in an interview with RAC1.
Extension of the accounting moratorium, Oxygen balloon for companies in the industries most affected by the pandemic, in particular the tourism sector, which is the activity most affected by the mobility restrictions that have been agreed to curb contagion. It has been confirmed from the government that fears that the end of this lifeline at the end of this year could lead to chain bankruptcies of tourism-related companies, especially airlines and travel agencies.
“It is clear that the balance sheets are unstable and there is no point in forcing companies that have the ability to pay in the tourism sector, in air transport or in transport in general, into bankruptcy. because most tourist campaigns are spectacular,” Calviño condemned. “The sectors most affected by the pandemic are tourism, transportation, accommodation… These are the companies that have recorded very significant losses in 2020 and 2021 despite all the aid.”
Current legislation recognizes the accumulation of losses as grounds for dissolution of a company for a volume that causes its net worth to be less than half of its capital. Considering the great losses experienced in the first years of the pandemic, it is a situation that can lead tourism and transportation companies to bankruptcy. The government will continue to allow exemptions for 2020 and 2021 losses to decide whether they will go bankrupt.
Source: Informacion
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