The economy is going through a confidence crisis and banks may become "hasty" and no longer wait for firms to rebound financially. The solution is keeping the balance and finding alternatives to revive companies and not driving them to bankruptcy, stated Serban Toader, a senior partner with KPMG, in an interview with ZF.
He explained many companies could be helped to rebound without being necessarily driven to liquidation, specifying firms have already begun considering restructuring moves, which is a positive thing. KPMG official maintains the same suggestion of keeping a balance and finding ways to turn around companies can be also made to the tax authorities. Toader says the restructuring of some companies can be also viewed as a positive outcome of the crisis, considering this process should have been carried out during the 2003-2008 period, when "too many businesses were refinanced when they were in trouble".
As regards banks' resuming their financing of the economy, lending should not be eased up, in Toader's opinion, but should be "appropriate", "reasonable" and carried out in line with some risk procedures that should avoid excesses. "(...) It's like a pendulum. Such a crisis has pushed the pendulum from one extreme to another. The pendulum has to come back to normal. Slowly, I'm confident it will regain a balance eventually. But we need more time".
Auditors also play an important part in rebuilding confidence and transparency in the current crisis situation, according to Toader. "I see the role of auditing as increasingly more important in a situation like the one we are in. (...) Auditors help boosting the transparency of financial information that is provided to the business environment (...)".
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