The number of corporate bankruptcies has not skyrocketed in the crisis, mainly due to government assistance

Corporate bankruptcies in 2020 surprisingly didn’t show a significant rise, but this is mainly due to government assistance, including financial grants and unemployment benefits. What can we expect once these benefits are expected to end in June?

Prof. David Hahn, an insolvency, lien, and corporate law expert who served as Israel’s official receiver, states in an article for Calcalist that this may be the calm before the storm and it’s hard to know the extent of the increase, but government support likely helped postpone bankruptcy for many companies and even helped some avoid it completely. 

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