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Significance
Small companies have been the most affected. Government programmes have supplied credit but struggled to channel funds to the neediest companies, especially at the beginning of the pandemic last year. Large companies, although remaining the major credit borrowers, have also accessed funding via debt issuance and stock offerings in capital markets.
Impacts
Companies’ financial obligations will increase along with recent rises in interest rates.
Lack of adequate government support this year may delay economic recovery.
New investments are less likely in face of mounting corporate debt.
The impact of rising liabilities will be more prolonged for small businesses.
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2021
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