ECB Warns Against Post-Pandemic Zombie Companies Challenge

The Financial Stability Review by the European Central Bank (ECB) showed on Wednesday that the low interest rates are adding to the challenge of zombie companies, noting that recovery will reveal the extent of the problem.

According to the report, risks of financial stability are increasing in Europe, especially with the challenges of the coronavirus pandemic.

It further noted that the number of bankruptcies fell by 18% in 2020 across the European Union (EU), due to the increased government support to businesses.