I hate crappy poorly thought out measures like this.
Is this a loan? If so, no dividends should be paid (or buybacks offered) until it's repaid. Otherwise companies just need to hold fire for 18m and it's free money!?
And if it is a loan, there should be interest and compulsory payments after (say) 6 months. Otherwise you're bailing out companies that SHOULD go bankrupt and penalizing ones that don't.
This is like when my country (the UK) bailed out banks. We got equity in exchange (smart). Then we decided to ban bonuses because politics. So we got sued and lost and had to pay them and legal costs. Then we said no more bonuses, so the good bankers, the ones that made a profit and who were not involved in the BS mortgage crap all moved to private banks. And we were left with hollow shells of companies we'd paid a fortune for.
I hate crappy poorly thought out measures like this.
Is this a loan? If so, no dividends should be paid (or buybacks offered) until it's repaid. Otherwise companies just need to hold fire for 18m and it's free money!?
And if it is a loan, there should be interest and compulsory payments after (say) 6 months. Otherwise you're bailing out companies that SHOULD go bankrupt and penalizing ones that don't.
This is like when my country (the UK) bailed out banks. We got equity in exchange (smart). Then we decided to ban bonuses because politics. So we got sued and lost and had to pay them and legal costs. Then we said no more bonuses, so the good bankers, the ones that made a profit and who were not involved in the BS mortgage crap all moved to private banks. And we were left with hollow shells of companies we'd paid a fortune for.