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ECB’s Villeroy Says Don’t Fret About Europe’s Insolvency Risks
There is overblown alarm about a possible wave of insolvencies engulfing the European economy as governments taper aid for firms, Bank of France Governor Francois Villeroy de Galhau said. The number of insolvencies has been around 40% below normal since the pandemic struck Europe, making it difficult for courts to operate normally and prompting governments to provide blanket support to companies. “A catch-up effect in the coming period would not signify an economic breakdown, but a return to a more natural tempo,” Villeroy said in a speech at a European Investment Bank conference. Nothing points to a jump in ... (full story)