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‘No bankruptcy wave due to end of livelihood support’ | To undertake

The ABN Amro economists assume that less than 1% of all Dutch companies are currently unable to hold up their own pants. “Still, we don’t expect all of these companies to go bankrupt. This group is strongly represented in the sectors where sector-specific regulations are still in force. Moreover, just like consumers, entrepreneurs have saved above average during the corona crisis, so that there is a financial buffer.”

The Tozo benefits have saved entrepreneurs from a huge drop in income, especially in the first months of the corona crisis. But due to the phasing out of the restrictions, the income of companies that have at least once made a claim on Tozo has now fallen sharply. ABN Amro has calculated that in September of this year about 40,000 entrepreneurs still received a Tozo benefit (approximately 2% of the number of companies).

Culture

The majority of this group has used the Tozo for more than twelve months and appears to be generating insufficient income to cover the expenses without this benefit. These structural Tozo recipients are mainly active in sectors that are still subject to restrictions such as culture and accommodation, meals and beverages. But also in the transport and storage sector, for which there are no longer any restrictions.

According to the economic bureau of ABN Amro, the sector-specific support measures announced by the government that will apply from 1 October soften the discontinuation of the Tozo. Because no specific support measures have been taken for the transport and storage sector, ABN Amro expects that more companies will go bankrupt here.

‘No bankruptcy wave due to end of livelihood support’ | To undertake
Source link ‘No bankruptcy wave due to end of livelihood support’ | To undertake

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