“Despite the significant policy support, it is likely that not all businesses will recover and insolvencies will rise, although this will be from a low level,” the bank said.
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RBA warns of insolvencies following extended lockdown
In its latest Financial Stability Review, the central bank noted that businesses in pandemic-affected industries or located in regions that have experienced prolonged lockdowns are more likely to be running down their buffers and some could face debt repayment difficulties.
