Unhealthy competition

COMMENT

The closure of certain large companies has no doubt had a considerable impact on society in this debt-wracked country, as well as its production base.

That said, the existence of so-called zombie enterprises, which are being kept afloat thanks to controversial bailouts, raises serious questions.

Healthy businesses need to pay off their loans in time, a situation made all the more difficult by the exorbitant interest rates. Allowing zombie companies to operate thereby undermines free competition because they are killing off any growth potential left in the country’s real economy.

The country’s business sector should have been purged of the unhealthy competition a long time ago and it is up to banks to make sure that this happens now. Further inaction on this issue will only see the social and economic cost grow.

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