Connect with us

Pandemic

Europe Keeps Aiding Companies to Avoid Surge of Covid-19 Insolvencies

Published

on

Rousselle Industrie SA. a maker of machinery for paint manufacturers in northern France that nearly collapsed in 2020 after the pandemic disrupted supplies and business to its customers.

The 10-person company was bailed out by $ 360,000 worth of loans under a government program that guaranteed debt and deferred interest payments for 12 months.

A year later, the company is still facing repeated delivery and payment delays, making the prospect of debt servicing difficult. Aware of the problems facing Rousselle Industrie and hundreds of thousands of other companies, the French government delayed loan repayments for another year.

Eric Plaisant, CEO of Rousselle Industrie, said the company would not have survived without government help.

“Without the help of the government, we would not have made it through this complicated phase,” said Eric Plaisant, the company’s chief executive officer. “There is still a lot of uncertainty.”

Economies like the US and China are recovering quickly. But in Europe, where vaccination programs have lagged behind other regions and the economy has slowed to adapt, companies continue to struggle. To prevent a bankruptcy avalanche and a new financial crisis on the continent, governments are extending support measures.

“We do not want to abruptly cut support and trigger dozens of bankruptcies,” said French Finance Minister Bruno Le Maire.

In addition to delaying loan repayments, the French government extended the program by six months to the end of the year. So far, it has guaranteed around 675,000 companies loans worth the equivalent of 166 billion US dollars.

In Italy, Prime Minister Mario Draghi extended a moratorium on loan repayment by six months until December. In Spain, Madrid provides some state-guaranteed loans.

Some of the measures will weigh more heavily on governments, whose debt has risen to levels above the 2011 sovereign debt crisis since last year.

The pandemic crisis is different from previous recessions. Expecting a sharp decline in economic activity followed by a quick recovery once the virus outbreak was under control, governments in Europe tossed the equivalent of $ 1.8 trillion in moratorium loans, government guarantees and corporate grants to keep them afloat. They kept people in work by paying the payslips. Countries like Germany have even suspended rules that oblige companies that have run out of money to file for bankruptcy locally.

As a result, unemployment remained low on the continent. Bankruptcies even went down. And the banks saw little reason to take large losses on their loan portfolios.

However, this relative stability is due to the loan programs.

Rousselle Industrie is still faced with repeated delivery and payment delays.

“If the current measures are phased out too quickly, companies could be marginalized,” said Martin Oehmke, professor of finance at the London School of Economics and Political Science and co-chaired a report by Europe’s top financial stability regulators on it Theme.

In the document, the European Systemic Risk Board said in a worst-case scenario in which the funding programs only postponed problems instead of fixing them: “The current low bankruptcy rate would then be comparable to the retreat of the sea before a tsunami. ”

If there is a tsunami, the supervisory authorities fear that the banks are not prepared. Andrea Enria, the head of banking supervision at the European Central Bank, warned that around 40% of banks in the euro area have not properly recognized loans that are unlikely to be repaid. Many have even lowered the probability of default on new loans, despite the obvious risks.

“This is something of a mystery to us,” said Mr Enria recently.

The biggest worries are in the economically weaker south of Europe, where the banks are weaker and the countries are more dependent on the heavily affected tourism.

In Italy, CNA, an association of small and medium-sized enterprises, found that over a third of the companies surveyed said they were unable to repay their loans on a regular basis. In the tourism sector, less than 2% said they could survive after the end of June without the moratoria.

“The extension of the moratorium is of vital importance to me,” said Cristina Vincenzi, owner of a lingerie shop in northeast Roncade. Ms. Vincenzi posted a loss last year after the pandemic forced her to close her shop for months. As part of the moratorium, she did not pay the monthly installments of EUR 575 for her EUR 10,000 loan, the equivalent of around EUR 12,000.

In Portugal, around a third of all bank loans to businesses are currently on payment leave, which expires in September. In the restaurant and accommodation sector, the proportion rises to almost 60%, according to the Portuguese central bank.

Cristóvão Lopes owns a 170-room hotel in the southern region of the Algarve, which attracts sun-seekers arriving on cheap flights from northern Europe. When business plunged 85% last year, a government vacation program covered part of his workers’ salaries while receiving a small grant and pay vacation for more than half of his outstanding debt.

SHARE YOUR THOUGHTS

How do you think Europe’s economic recovery will develop? Join the conversation below.

In June, as activity picked up again, the UK – its largest source of customers – put Portugal back on a list of countries from which travelers must be quarantined on return. Refusals followed. Mr Lopes estimates that his business will not return to normal until 2023.

The moratorium on his debt ends in September when hotels enter the off-season.

“Until then, we just can’t generate enough liquidity,” said Lopes. “You can’t expect companies to go from zero to 100% overnight.”

Portugal’s government has presented a plan to intervene after the moratorium is lifted and to guarantee part of the loans in return for the banks to grant further repayment breaks. That carries its own risk: unpaid loans would become a national debt in a country where the national debt – at more than 130% of the gross domestic product – equals the level of the last decade.

France has guaranteed loans worth $ 166 billion for around 675,000 companies such as Rousselle Industrie.

Write to Patricia Kowsmann at patricia.kowsmann@wsj.com, Giovanni Legorano at giovanni.legorano@wsj.com and Noemie Bisserbe at noemie.bisserbe@wsj.com

Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Pandemic

Here’s how to keep your kids safe from the Covid-19 Delta variant

Published

on


CNN

The more contagious Delta variant is spreading rapidly in the US, but children under the age of 12 can’t get the best protection there is – a vaccine.

That said, pediatricians say there are still simple things parents can do to help children protect themselves from Covid-19, especially when they return to school.

Serious cases are not common in children, but Covid-19 numbers have been higher than ever in the pandemic since November, said Dr. Yvonne Maldonado, director of infectious diseases in the Department of Pediatrics at Stanford Medicine and chair of the committee with the American Academy of Pediatrics.

Her association has been tracking cases and found that nearly 72,000 children and adolescents were infected with Covid-19 last week. That is a significant increase compared to the previous week, about five times as many sick children as at the end of June.

“It is clear that this variant can cause serious injuries in children. You’ve heard these stories from pediatric intensive care units in Louisiana where children are sick as young as a few months, “said Dr. Francis Collins, the director of the National Institutes of Health, John Berman of CNN on New Day Tuesday.

“Anyone who says that as a young healthy person you don’t have to worry, you have to think about it.”

The most important thing that parents need to think about, say pediatricians, is the vaccine.

If a parent or adult hasn’t been vaccinated in a child’s life, get one now, they guess. The same applies to siblings who are old enough.

Parents should also talk to children about why it is important.

“Make sure you have this conversation with them – about why it is important to be vaccinated and how it protects not just them but everyone around them,” said Dr. Dane Snyder, director of primary pediatrics at Nationwide Children’s Hospital in Columbus, Ohio.

Parents may also want to talk to anyone who interacts with the child about their vaccination status, Maldonado said. If the person isn’t vaccinated and the parents still feel good about having them around their unvaccinated child, at least ask them to wear a mask or even consider asking them to take a test before they do meet.

“You wouldn’t want your child in a car that someone drives without a seat belt or a driver’s license,” Maldonado said. “We shouldn’t be afraid to stand up for the health of our children.”

Snyder said parents should continue to reinforce the message about good hygiene.

For example, she said, parents should teach their children to cough into their elbows and wash their hands.

“Hand washing is really one of the most effective ways to prevent the spread of any type of disease, be it in your home or community,” said Snyder.

Three feet of physical distance can reduce the spread of the virus, good ventilation helps, and masks for indoor activities are key, public health experts say.

The American Academy of Pediatrics recommends that anyone over the age of 2, regardless of vaccination status, wear a mask when attending school.

“The data is very convincing that masking continues to be a very effective means of preventing infection,” said Dr. Larry Kociolek, attending infectious diseases physician at Ann & Robert H. Lurie Children’s Hospital in Chicago.

By some estimates, having a mask reduces the risk of contracting Covid-19 by about 50%, he said. “Masks are most effective in areas where there is a high risk of exposure and transmission,” said Kociolek.

Dr. Sarah Combs, an emergency doctor at Children’s National Hospital in Washington, DC, said parents can make wearing a mask fun.

“Go ahead and get them a mask of their favorite character and tell them it’s like Superman’s mask. Do whatever you can to get them involved, especially the younger who are less understanding, ”said Combs.

Snyder recommends that parents talk to their children about wearing a mask to school so they know what to expect, especially when a mask is not required. “Make sure you talk to children about accepting things about children who are either masked or not,” Snyder said.

As for parents and masks, Dr. Amy Edwards, assistant medical director of pediatric infection control at UH Rainbow Babies and Children’s Hospital in Cleveland, suggested that even vaccinated parents should wear a mask in public. “That way, they’ll be less likely to get Covid and bring it home,” Edwards said.

The risk of contracting Covid-19 is much lower if the child is playing outdoors.

Edwards said she restricted her own children to playing outdoors only with their friends. “It’s okay to play with the neighborhood kids, but only outside in the yard, not inside in the playroom or bedroom or the like where there is closer internal contact – which is a bigger problem,” she said.

For older children who enjoy video games, Edwards said a parent could set up time for streaming together even if they are in different rooms.

“Try to come up with creative ways kids can play together, but limit their exposure,” Edwards said.

Playing outdoors has an added benefit. “It’s not just safer from a Covid-19 standpoint – physical activity is a real health benefit,” Kociolek said, particularly given the rise in child obesity rates in the Chicago area since the pandemic began.

Talking to children about Covid-19 is essential, according to paediatricians. Children are like sponges, said Combs.

“Even at this very young age, they are aware of their surroundings, they are picking up your emotional cues. And when we try to keep things from the kids, they get more suspicious and fearful, ”said Combs.

This way even a toddler can understand the basics.

Edwards says she even talked to her kids ages 2 and 4 about the Delta variant. “I told them the virus kind of grew up and got a little bit stronger, so we have to fight a little bit harder,” said Edwards.

With teenagers, parents don’t want to make them more anxious, so be factual, Combs said. It can be helpful to acknowledge that it can be scary even for parents. “That’s fine because we know things and ways to reduce the risk and help each of us in the family,” said Combs.

Combs added that it is also good to encourage the children to be open, especially when they are unwell, so that the parents can keep them at home and remind the child that being home is not a punishment stay – it serves the security of the people.

Edwards said clear communication and reassurance are important in children.

“How many times have we told our parents it wasn’t fair and our parents told us life wasn’t fair?” Said Edwards. “For children, this pandemic is the ultimate ‘life is not fair’. We have to let them know that we are doing everything we can to help them. ”

Continue Reading

Pandemic

Australia records one of its youngest COVID-19 deaths as Sydney outbreak grows

Published

on

SYDNEY, Aug. 4 (Reuters) – Australia’s New South Wales on Wednesday reported one of the country’s recent deaths from COVID-19 as daily infections remained near a 16-month high despite 5 million people in the state capital, Sydney in the 6th week.

The nameless man in his twenties, who had no underlying health problems and was unvaccinated, died at his home in the city, authorities said. It was deteriorating rapidly after previously complaining of only mild symptoms, they added.

The death underscores the risk to Australia’s largest city, which is struggling to contain a highly contagious Delta variant outbreak when fewer than 20% of Sydney’s residents are vaccinated.

Last year, neighboring Victoria state said an unnamed man in his twenties died of COVID-19, although a coroner is still investigating the exact cause of death.

The young man was one of two COVID-19 deaths reported in New South Wales (NSW) in the past 24 hours. NSW also recorded 233 new cases, near a 16-month high reported last week, and Prime Minister Gladys Berejiklian said case numbers were likely to rise.

“I am not going to rule out that the number of cases will not worsen, I even believe that they will worsen,” Berejiklian told reporters in Sydney.

“If you look at the number of infected people in the community, it suggests that we may not have peaked yet.”

Berejiklian is under intense pressure to ease the restrictions on movement that are threatening Australia into its second recession in as many years. However, she said at least 50% of the state’s population would need to be vaccinated in order for the curbs to be loosened in late August. Continue reading

Still, many are wary of taking the AstraZeneca (AZN.L) vaccine, the most powerful of two vaccines approved in the country, due to a rare blood clotting problem.

In addition, government models released Tuesday showed that at least 70% of the state’s population would need to be vaccinated to slow the spread.

Authorities have warned people not to wait for an increase in Pfizer shipments (PFE.N) expected in the next month, as case numbers are proving difficult to cut and wastewater tests suggest that the coronavirus may be heading north has spread.

COUNTER-MEASURES

New South Wales has taken aggressive countermeasures to halt the spread of the coronavirus, including cordoning off high-risk suburbs and urging the military to help police enforce lockdown rules. Continue reading

A total of 17 people have died in Sydney during the current outbreak, which began on June 16. During that time, the surge has brought the total number of cases in NSW to more than 4,000.

Nationally, Australia has recorded 927 deaths since the pandemic began, with just over 35,000 cases affecting 22 million people.

Queensland reported 16 locally acquired cases on Wednesday, just like the day before, prompting authorities to declare it the state’s worst outbreak since the pandemic began and warn that a lockdown in the capital, Brisbane, could be extended beyond Sunday .

“If we don’t do anything really, really, really special in Queensland, we’ll be extending the lockdown,” Queensland chief health officer Jeannette Young told reporters in Brisbane.

Coverage of Byron Kaye and Renju Jose in Sydney and Colin Packham in Canberra; Editing by Gerry Doyle and Christian Schmollinger

Our Standards: The Thomson Reuters Trust Principles.

Continue Reading

Pandemic

US Covid-19 hospitalizations top 50,000 for first time since February

Published

on

According to new data from the US Department of Health, more than 50,000 Covid-19 patients were hospitalized on Monday for the first time since February 27.

The 50,625 Covid-related hospital admissions on the HHS dashboard are more than three times the number of people hospitalized for Covid-19 a month ago when 16,000 patients were hospitalized.

Florida leads the nation in Covid-19 hospital admissions, with 10,682 listed on the HHS dashboard. Texas reported 6,628 Covid-19 hospital admissions this week. California reported 4,682. And Louisiana reported 1,839 Covid-19 hospital admissions, nearing its record for that pandemic.

“You have people with chest pain sitting in an emergency room while their families sit in the waiting room wringing their hands and calling everyone they know,” said O’Neal.

Just over two weeks ago, the hospital had 36 Covid-19 patients, O’Neal said. On Monday it was 155.

“No diagnosis should take up a quarter of your hospital,” said O’Neal. “We no longer believe we are adequately caring for anyone because these are the darkest days of the pandemic.”

The best way to slow the spread of Covid-19 is to get a vaccination, but it doesn’t go fast enough, O’Neal said. Even if people are vaccinated today, it will take weeks for the vaccines to fully work.

So people should wear masks, said O’Neal.

In many hospitals, patients are younger and sicker than they used to be, doctors say.

The seven-day average of daily new coronavirus cases is up more than 40% from the previous week, said Dr. Rochelle Walensky, director of the US Centers for Disease Control and Prevention on Monday.

“While we absolutely want to deal with this pandemic, Covid-19 is clearly not done with us yet. Therefore, our fight has to take a little longer,” said Walensky.

With vaccination rates rising but still below where they need to be to slow or stop the spread of the virus, many local leaders are turning to masks again to protect their populations.

The CDC updated its guidelines last week advising even fully vaccinated individuals to mask themselves in areas with significant or high transmission. CDC adds 16 travel destinations to its

These guidelines cover more than 90% of the US population – about 300 million people, according to a CNN data analysis released by the CDC on Monday.

Louisiana Governor John Bel Edwards has temporarily reinstated the state mask mandate for anyone aged 5 and over, both vaccinated and unvaccinated, while indoors and in public. The mandate comes into force on Wednesday.

“Nobody should suffer the misconception that this is just another climb. We’ve already had three of them, this is the worst we’ve had so far,” said Edwards.

The state health officer, Dr. Joseph Kanter said he anticipates that at any point in the pandemic, Louisiana will hit the highest number of hospitalized Covid-19 patients on Tuesday.

“If we intend to prioritize the things that are important to us, such as keeping our children back in school and in person, and keeping our growing economy open by keeping business open, masking is the best way to ensure that Masking order seriously, both in your personal life and in your professional life, “said Kanter.

Breakthrough infections aren’t as alarming as they seem, says Fauci

Reports of infections in vaccinated individuals known as breakthrough infections have caused some public concern. However, experts say they are not as alarming as they seem. About 99.999% of fully vaccinated Americans have not had a fatal breakthrough Covid-19 case, CDC data shows

“The vaccines do exactly what we ask them to do when it comes to keeping you out of the hospital, keeping you away from serious illness, and certainly preventing your death,” said Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases.

Vaccines result in an eight-fold reduction in the number of people developing the disease and a 25-fold reduction in both hospital admissions and Covid-19-related deaths, Fauci said.

“An important point to make is that the absolute number of breakthrough infections might appear high in a larger percentage of people vaccinated, even with a high level of protection. That’s not the critical number. The critical number is the proportion “of those vaccinated, people who … get breakthrough infections, and that’s the critical one,” added Fauci.

This Texas city has a relatively high vaccination rate, but it is still struggling to get firearms in the face of rising casesWalensky gave some details on what that percentage looks like: Of the tens of thousands of people likely to have been exposed in an outbreak in Provincetown, Massachusetts, she found 346 confirmed breakthrough infections.

“During the summer, some Barnstable County towns can have up to 240,000 visitors a month,” Walensky noted.

Some of these people will even get infected if they are vaccinated, Fauci said.

“You can expect breakthrough infections,” he said. “Most of these infections will be asymptomatic or mild.”

“The bottom line of what we’re saying is … Get vaccinated. I say that every time,” said Fauci.

The CDC reported on Sunday that 816,203 additional doses were administered, and for the fifth straight day the agency recorded more than 700,000 firearms. The current 7-day average of administered doses is 662,529 per day, the highest average since July 7th.

CNN’s Matthew Hilk, Rebekah Riess, Deidre McPhillips, Maggie Fox, Ralph Ellis and Theresa Waldrop contributed to this report.

Continue Reading
Advertisement

Trending