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Corcoran writes to Donohoe calling for debt write-offs

 

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Cardinal Capital co-founder Nick Corcoran

Cardinal Capital co-founder Nick Corcoran

Cardinal Capital co-founder Nick Corcoran

Leading Irish private equity figure Nick Corcoran has written to Finance Minister Paschal Donohoe outlining the rationale for debt forgiveness for SMEs to overcome the current crisis.

Corcoran, co-founder of Cardinal Capital, believes rapid recovery is possible with the right policies.

Writing in today's Sunday Independent, he said: "Rapid economic recovery and substantial re-employment are possible post-crisis, but can only be achieved by widespread debt forgiveness."

"Debts incurred by companies and individuals, debts which would not otherwise exist in the absence of the Covid-19 crisis, could incapacitate the economy."

This could lead to a decade of depressed growth and sustained high levels of long-term unemployment, he argued.

"A failure to effectively reassign debt to the State will ensure otherwise viable businesses face permanent closure, with a corresponding permanent removal of employment and future taxation streams," he said.

Sunday Indo Business