FRIDAY, 26 FEB 2021

 

CONNECT

Facebook Linked In Twitter
GAP Vassilopoulos
GloriaJeans_266x90px
IMH LTD

Perdios Presents Main Goals of the 2030 National Strategy for Tourism

President Expresses Strong Determination To Participate In Informal Meeting In Geneva On Cyprus

IMH LTD

OPINION

Business and Covid-19: From Chaos to Complexity

Business and Covid-19: From Chaos to Complexity

The pandemic has caused severe social and economic disruption around the World, forcing many businesses to adapt or face the risk of going under, and having to close their doors. 

 

Looking into the future, it is certain that we will all be working and consuming differently than we did before the crisis. Any attempt to hold on to the pre-crisis mode will fail resoundingly as this new reality is here to stay. Companies and industries must respond to the current challenges by finding new answers to new problems.

 

Following the three guidelines of creating a preventive culture, enhancing cooperation, and shifting mindset, businesses will be able to face the pandemic’s consequences while discovering new ways of growth and profitability.

 

The immediate need is to implement a comprehensive set of policies to alleviate solvency strains, and, where necessary, prevent bankruptcies of companies that will be viable in the longer run. In Europe, a new culture is rapidly developing, one that is focused on prevention rather than reaction, which has been further strengthened by the obligation of transposing the European Restructuring Directive 2019/1023 to the national legislations of member states by July 17, 2021.

 

Now more than ever, all participants to the business ecosystem need to cooperate in order to thrive, not just survive.

 

Many businesses will suffer greatly due to the pandemic and they will need efficient solutions to enable the continuance of their activity. Customers will expect their financial partners to be proactive and anticipate their needs in the most minor details. Faster and better advice will be expected across all channels, while a new customer-centricity era is arising.

 

In the case of banks, this appears to be an era of increasing nonperforming loans, that will add up to the already existing ones. The difficult times ahead make it mandatory for banks to have a thorough understanding of their customers, gain deep insights into the needs of particular sectors and subsectors, but also to assess individual borrowers, as business models can be very different from one company to another within the same sector.

 

Instead of focusing on traditional ways of serving customers, banks could instead aim to help them in their neuralgic points, to facilitate the continuance of their businesses. They may consider other services as well, sometimes even partnerships with other specialists in the market, to identify the proper solutions and, therefore, meet a wider range of needs.

 

Within the same context, insolvency practitioners worldwide are no longer only dealing with the aftermath of a bankruptcy declaration. Instead, they are using their significant business experience and acquired professional skills as consultants for companies or their financial partners, promoting a proactive mindset meant to avoid insolvency and contributing to the general wellbeing of the economy. They are drawing-up business restructuring plans, assisting companies in implementing them and providing expert advice to financial institutions, acting as important connecting elements within already established or new business relationships.

 

In Cyprus, as most businesses are family-run, the owners, fearing the stigma of failure, have the tendency to support their business through personal lending, this being also the case for non-viable businesses, that should not be kept alive with no real perspective of becoming viable soon enough.

 

This mindset should shift, considering that there are several operational restructuring options available. Preventive restructuring tools, like Examinership, should be used more often, as they aim at saving a viable business through debt restructuring. For such procedures to be efficient, special attention needs to be paid to early signs of distress not only by the business owners but also by their partners. This way, adequate action plans could be put in place in a timely manner, safeguarding the interests of all parties involved.

 

At CITR, a business will be able to receive the proper tools to prosperity benefiting from our extensive combined experience of more than 20 years as specialists in business restructuring, as well as in distress and crisis management.

MORE ON OPINION

CySEC Fully Committed To Exploring Benefits And Risks Of Fintech

Technology is transforming every aspect of the world, including financial markets. ...

What To Expect in 2021

2020 was a year like no other with the impact of the pandemic being felt hard across the ...

The Schools Of The Future

The pandemic has redefined our reality in recent months as it has affected every aspect ...

FROM AROUND GOLDNEWS

   

11th Nicosia Economic Congress

IMH, in association with the Institute of Certified Public Accountants of Cyprus (ICPAC), presents the 11th Nicosia Economic Congress on Tuesday, 20 April 2021 ...
   

4th Cyprus International Tax Conference

IMH is organizing the digital event “4th Cyprus International Tax Conference” on Thursday, 30 March 2021.   Distinguished speakers from ...
   

Danos | International Property Consultants & Valuers: Thessaloniki Market Report

Greek Economy Overview Greece had to face the outcomes of a ten year economic crisis, which officially came to an end in 2019. Before yet witnessing the ...
   

Alphamega Hypermarkets: New Stick & Win Loyalty Programme Featuring Top Quality MÖVE Products

Alphamega Hypermarkets have launched a collaboration with the brand MÖVE as part of the company’s Stick & Win loyalty programme, rewarding ...
   

Perdios Presents Main Goals of the 2030 National Strategy for Tourism

Cyprus Deputy Minister of Tourism Savvas Perdios presented the main goals of the 2030 National Strategy for Tourism, during a teleconference with the World ...
   

European Leaders Are Calling For A “Vaccine Passport” Before The Summer Tourism Season Arrives.

European leaders, deeply concerned that another summer’s lucrative tourism trade could be lost to the pandemic, are escalating calls for the European ...
   

President Expresses Strong Determination To Participate In Informal Meeting In Geneva On Cyprus

President Nicos Anastasiades has expressed strong determination to participate in the informal meeting on Cyprus which will take place in Geneva.  The UN ...
   

G.A.P. Vassilopoulos Group Proudly Announces Its Cooperation With DSV PANALPINA A/S

G.A.P. Vassilopoulos Group proudly announces its cooperation with DSV PANALPINA A/S, one of the largest Freight Forwarding companies in the world. ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Gold_February_Issue_300x250px
Forex_29/01-07/04

IMH LTD