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Quarter of  businesses in financial straits

A full quarter of Flemish businesses are having a hard time ticking over financially during the corona emergency, despite government support measures, fresh data compiled by Graydon reveal.  Graydon, an agency that is specialised in business statistics, is monitoring the impact of government support measures at the request of the authorities.

One in four Flemish businesses says it will require extra financial support in order to resume activities after the lockdown.  Businesses plan to ask shareholders for extra capital, apply for loans from their bank manager or seek extra government support. If this is not forthcoming, they could go to the wall.

The figures were compiled on the assumption that companies return to business on Monday.  This will not be possible for many businesses in the hospitality and entertainment industries. Here, the corona crisis is inflicting an even heavier blow.  Data from employers’ organisations in this sector reveal that three out of ten businesses that stage events are worried they won’t survive. Among businesses in the hospitality industry (bars, restaurants, hotels) the figure is one in four.

Government support measures to business include furloughing staff, who are able to sign on for temporary unemployment benefit, providing loan guarantees as well as grants.

Economic life may resume on Monday, but it won’t yet attain levels seen before the crisis.