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Dilemma for businesses: reduce debt or invest?

Dilemma for businesses: reduce debt or invest?
Jun 23, 2020 · 8m 46s

The second episode focuses on non-financial companies. As well as having a considerable impact on their short-term (cash) and long-term assets (imperative of aligning their operational model with new requirements...

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The second episode focuses on non-financial companies. As well as having a considerable impact on their short-term (cash) and long-term assets (imperative of aligning their operational model with new requirements in terms of supply chain resilience), the Covid-19 crisis has obliged businesses to increase their indebtedness. This confronts them with a dilemma whether to strengthen their balance sheet by paying back debt or to maintain a high degree of leverage an invest.
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Author BNP Paribas Economic Research
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