Ireland has experienced unprecedented economic disruption as a result of the Covid-19 pandemic. It was expected that the pandemic would lead to an increase in the number of corporate insolvencies. However, to date, this increase has not materialised – the number of corporate insolvencies during the first six months of 2021 was actually 38% lower than the corresponding 2020 figure. The downward trend in the number of corporate insolvencies is partly due to the fact that companies’ cash-flow positions are being subsidised by the Government Covid-19 support measures and forbearance arrangements with their banks. This level of support is unsustainable. Once Government supports and lender forbearance cease, it is inevitable that some companies will face insolvency.
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