State guarantees to counteract the financial effects of the COVID-19 pandemic on industrial supply chains

State guarantees to counteract the financial effects of the COVID-19 pandemic on industrial supply chains

Blog Article

As the recent COVID-19 pandemic has Brazil Nuts clearly demonstrated, appropriate state support policies are crucial for supporting industrial supply chains during crises to prevent viable businesses from defaulting.In this context, this study proposes a hybrid credit risk model to appropriately size public interventions for viable (worthy) businesses through systematic risk assessment during a period of turmoil.This study discusses the effects of the credit crunch-based economic downturn and proposes a methodology to assist policymakers in managing limited public resources to effectively support industrial supply chains.The proposed approach initially focuses on the dynamics of credit risk Vegetable / Fruit Cutting Tools during economic recession periods, identifying the conditions that may justify a public intervention strategy based on public guarantees.

Subsequently, a hybrid credit risk model is developed to appropriately size public interventions by quantifying systematic risk.Finally, a numerical application is presented to demonstrate the effectiveness of the proposed approach.