During the last ten years, investors and practitioners have focused on the costs of large cash holdings and little debt to companies and shareholders, and the private equity industry has made the reduction of financial flexibility intrinsic to its business model. The reported study shows that the value of financial flexibility in March 2020 was high.
The Covid crisis has created new liquidity needs for companies due to a partial slowdown or a total shutdown of their activities. The Confederation has provided a solution to this problem by granting bridging loans. This text proposes a new way forward which would offer a real alternative to small and medium-sized enterprises for which the burden of debt repayment would be insurmountable.
The Corona crisis also has financial and psychological consequences for the self-employed.
A survey conducted by the KOF Institute and the University of Lausanne among 1,000 self-employed people and entrepreneurs shows that the containment led in some cases to massive sales losses and psychological problems.
Follow-up document – 27 June 2020
“Covid-19 Financial Support to Small Businesses in Switzerland: Evaluation and Outlook”
Lifting the lockdown, yes …. But how?
Outline of a strategy combining health and economic factors
Lifting the lockdown
Kein Lockdown-Ausstieg ohne Risiko
Generous Wage Compensation & Corona Loans: Why and How the Swiss State Should Bear Most of the Economic Cost of the Corona Lockdown
Wage Compensation & Corona Loans
Prise en charge des salaires et “prêts Corona”
Lohnfortzahlung und Corona-Darlehen
Introducing an Airline Ticket Tax in Switzerland: Estimated Effects on Demand