BoE does not expect wave of bankruptcies when Covid support

BoE does not expect wave of bankruptcies when Covid support measures end


BoE does not expect wave of bankruptcies when Covid support measures end
The BoE is not expecting a wave of bankruptcies when coronavirus support ends.
A tide of bankruptcies among UK firms is not expected when the government pulls its emergency Covid support measures like the furlough scheme later this year, BoE Chief Economist Andy Haldane has said.
Many debts racked up recently by companies are spread over long durations “which increases the chances of them being able to be paid back and therefore bankruptcy is not picking up very much from current relatively subdued levels,” Haldane said.
“But ultimately there are risks around that and we’ll need to track them through,” he said in a presentation to businesses, a day after the BoE sharply raised its forecasts for British economic growth in 2021.

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