OECD supports swap line use in Covid-19 response
Adequate liquidity must be provided to prevent bankruptcy should cashflow issues arise – report
Swap lines between central banks should be used if the coronavirus continues to cause widespread disruption to trade, according to the Organisation for Economic Co-operation and Development.
In a new report, the OECD analyses the economic impact of the virus and discusses potential policy options. In the very short term, the provision of adequate liquidity in the financial system will be key, the OECD says.
This will ensure banks can provide help to companies with cashflow problems
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