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EU faces bankruptcies and bad loans as Covid-19 help for firms ends: Report

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European Union is facing a surge in bankruptcies and bad loans once the post-pandemic economic recovery starts to take hold and governments begin withdrawing state schemes that are keeping many firms on life support, a EU document indicates.The European Commission note, prepared for euro zone finance ministers' talks on Monday, said that thanks to almost 2.3 trillion euros ($2.8 trillion) in national liquidity support measures, euro zone governments have so far staved off a rise in insolvencies.Also Read | Inside the Mindtree makeover strategyWithout such help and new loans from banks, almost a quarter of EU companies would have had liquidity problems by the end of 2020 after exhausting their cash buffers because of the economic havoc.

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