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International Monetary Fund. European Dept.

-pandemic future, an estimated equity injection of about 2 percent of GDP would be required in addition to all the policy support already provided just to bring firms’ equity to the threshold above which they would not be considered “in difficulty” in the current year. It is important to emphasize that the results should be interpreted with caution, given data limitations on the coverage of firms and the assumption that all firms will rely on available programs in full. Moreover, liquidity and solvency risks do not necessarily imply the opening of insolvency proceedings