Working Paper: Firm financing and public support measures during the pandemic

Working Paper - November 2021 - No. 184

Authors Julin, Ida Rommedahl (Danmarks Nationalbank); Kuchler, Andreas (Danmarks Nationalbank); Otte, Alexander Meldgaard (Danmarks Nationalbank)
Subject Economic activity and employment; Public finances and fiscal policy; Financial assets and balances
Type Working paper
Year 2021
Published 30 November 2021
Abstract icon This paper studies Danish firms' debt financing decisions during covid-19 with a focus on the impact of government support measures. Credit growth has been modest during the pandemic. Public liquidity measures such as deferred tax and VAT payments served as a substitute for more traditional debt funding sources.