A majority of small and medium-sized businesses will not be spared from a liquidity shortage this year, says Gerald Zmuegg, general manager of the advisory platform Finanzombudsteam. Recent studies show that there is a 15 percent drop in revenue and a 20 percent increase in costs across all industries. Especially for those companies that had to build up debts during Corona because they no longer have access to credit, interim financing is particularly difficult. “I can’t remember that there is so little political support for small and medium-sized companies as there is at the moment,” criticizes Zmuegg. The majority of stakeholders would have lobbied past the topic. Of course you see the interdependence between political stakeholders and politics. According to the financial expert, this should be resolved as soon as possible.
Zmuegg’s call: fewer aid payments. These would simply die out and have little to no effect. Instead, you need to create framework conditions for small and medium-sized businesses to gain new liquidity.
The main creditors, who are filing for bankruptcy, the tax authorities, the social insurance companies and the banks are still waiting because they hope to be able to reduce the outstanding debts at least through installment payments. “We expect that to change by March or April of this year at the latest,” says Zmuegg. A slow decline in consumption is now also noticeable, which was not yet noticeable in the last quarter of 2022.
Industry stakeholders would simply accept the current situation rather than say what specifically needs to be done. Liquidity is a means to this end, but at the same time COFAG must be put under pressure so that the funds can be paid out. “If necessary, you have to litigate,” says Zmuegg. “It cannot be the case that on the one hand the entrepreneur is bullied by the tax authorities into paying his taxes, on the other hand he has to wait for compensation from COFAG or the Ministry of Finance.”
According to Zmuegg, the bridging loan issue is one because they’ve been short from the start. Politicians, especially the ÖVP and the Greens, should extend the deadline here, then it will no longer be a problem.
You can see the entire interview with Gerald Zmuegg in the video above.
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Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
