CORONAVIRUS: Impact on  Financing Agreements

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CORONAVIRUS: Impact on Financing Agreements

2020-04-13

The business financing sector is among those that could suffer the greatest impact due to the economic crisis that is expected to be the inevitable result of the global COVID-19 pandemic.

First of all, the paralysis of economic activities will undoubtedly have a negative impact on the liquidity of companies that have to make regular payments under financing agreements. These liquidity problems will seriously harm the ability of companies to meet their obligations on time. This is likely to lead to breaches of contract that could be grounds for terminating the agreements and for the early maturity of any outstanding obligations, which would have an even more serious effect on the economic and financial situations of companies.

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