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