Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

Corporate Distress Due to Impact of Covid-19: The G30 Urges Swift, Measured Policies Aimed at Restoring Corporate Health
  • USA - English

The Group of Thirty (G30) today published, Reviving and Restructuring the Corporate Sector Post-Covid: Designing Public Policy Interventions.


News provided by

Group of Thirty

Dec 14, 2020, 09:00 ET

Share this article

Share toX

Share this article

Share toX

WASHINGTON, Dec. 14, 2020 /PRNewswire-PRWeb/ -- The Group of Thirty (G30) today published, Reviving and Restructuring the Corporate Sector Post-Covid: Designing Public Policy Interventions. The report commends the broad-based governmental actions initially taken to support the economy, citizens, and the corporate sector during the Covid pandemic. However, structural changes in our economies due to the pandemic, and growing corporate solvency challenges, require a new mix of policy responses and tools. The report urges governments to move away from broad support and toward more targeted measures, enabling the reallocation of resources needed for economies to emerge from the crisis fitter and stronger.

In jurisdictions with strong private financial institutions and deep capital markets, this means mobilizing various mechanisms, tools, and markets to prioritize financial restructuring, with policymakers administering additional support where necessary. Key to this process will be to identify and support firms that will be viable in the post-pandemic economy, while repurposing the resources of those that will not. The report offers a framework to guide policymakers in this task. If comprehensive action is taken early, corporate distress will not hold back the return to sustained growth.

Mario Draghi, Co-Chair of the G30 Working Group on Corporate Sector Revitalization and Former President of the European Central Bank, warned: "Policymakers need to act urgently, as the emerging solvency crisis is already eroding the underlying strength of the business sector in many countries. The problem is worse than it appears on the surface, as massive liquidity support, and the sheer confusion caused by the unprecedented nature of this crisis, are masking the full extent of the problem. We have a cliff edge of insolvencies, especially of small-and-medium-sized enterprises, coming in many sectors and jurisdictions, as support programs run off and existing net worth is eaten up by losses."

The report's recommendations cover key universal principles, a set of policy tools, and a decision framework that should inform the policy response tailored to local conditions. The core principles include focusing on the long-term health of the corporate sector, the productive use of resources, and preventing collateral damage.

A balance needs to be struck to support firms which are viable exiting the pandemic, while ensuring the banking system remains fit and able to give credit to households and corporates and support the economic recovery. Dr. Draghi stressed: "We need to focus on preserving the capacity of the financial system to sustain lending and on offsetting unintended consequences for the financial system and banks' stability."

Raghuram Rajan, Co-Chair of the G30 Working Group on Corporate Sector Revitalization, Professor of Finance at the Chicago Booth School of Business, and Former Governor of the Reserve Bank of India, stated: "Policymakers should act urgently through carefully targeted support tools that adapt to the new realities of business instead of relying on the status quo. The duration of the pandemic forces us to focus on structural issues and solvency, rather than on buying time through a focus on liquidity. Government intervention is best focused on addressing market failures, and to managing the pace of the needed creative destruction."

Given concerns over fiscal constraints, the report recommends allowing market forces to play a role while preventing substantial social costs through policy intervention where required. Other key points include taking advantage of private sector capacities where they exist, in order to leverage scarce public resources, as well as making use of private sector expertise to evaluate the viability of businesses.

Dr. Rajan added: "If corporations are helped, governments will be tempted to impose conditions that promote social objectives such as greening of the economy. It is important that any such conditions should be synergistic with corporate recovery."

Dr. Draghi and Dr. Rajan co-chaired the study, with a working group of eight G30 members. Douglas Elliott, of Oliver Wyman, and Victoria Ivashina, of Harvard Business School, served as Project Directors, supported by a drafting team from Oliver Wyman including Andrew Bailey and Sofia Price.

Tharman Shanmugaratnam, Chairman of the Group of Thirty, commented: "We are past the emergency phase of economic policy response to Covid-19, and policymakers will increasingly have to make hard choices so that we do not hamper industry restructuring, and lay the foundation for job creation suited to new realities. This report led by Mario Draghi and Raghuram Rajan aims to inform such choices, so that we come out of Covid-19 fitter and stronger."

Douglas Elliott commented: "The report lays out ten core principles for policymakers to consider when judging the appropriateness of policy mechanisms and tools, we hope these are useful as governments enter and navigate this next particularly fraught solvency phase of the pandemic-induced economic crisis."

Victoria Ivashina noted: "We lay out numerous ways to address this crisis, from equity injections, to quasi-equity, to bankruptcy adjustments, to pandemic insurance. The precise makeup and composition of the tools used in each country will vary, but the goal is the same: to weather the coming corporate solvency crisis while ensuring the prudent use of limited public resources."

To receive a copy of the Reviving and Restructuring the Corporate Sector Post-Covid: Designing Public Policy Interventions report, please contact G30 Press Officer Melissa Golding, +1 571-236-2820, [email protected].

On December 14, 2020, at 9:00am EST, the G30 hosted a live webinar launch of the report with Mario Draghi, Raghuram Rajan, Douglas Elliott, and Victoria Ivashina. A link to the webinar recording is available on the G30 website, http://www.group30.org.

The Group of Thirty is an independent global body comprised of senior representatives of the public and private sectors and academia. The Group aims to deepen understanding of international economic and financial issues, to explore the international repercussions of decisions taken in the public and private sectors, and to examine the choices available to market practitioners and to policymakers. The Group was established in 1978, and is led by Jacob A. Frenkel, Chairman of the Board of Trustees, and Tharman Shanmugaratnam, Chairman of the Group.

Media Contact

Stuart Mackintosh, Group of Thirty, +1 (202) 331-2472, [email protected]

Twitter

SOURCE Group of Thirty

Related Links

http://www.group30.org

Modal title

View PDF

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.