Praia, May 11 (Inforpress) – Economist António Baptista pointed out that one of the major causes of companies “mortality” in the country is the cash flow difficulty, associated, in turn, with the difficulty in revenues, turnover and cost control.
In an interview with Inforpress, in an analysis of the financial education of companies in the archipelago in times of crisis, António Baptista said the “pandemic situation brought great challenges”, and the “country will be much more impacted”, taking into account liquidity difficulties and the typology of companies.
“The big problem for companies is the lack of liquidity, in fact much of the companies mortality are associated with cash flow difficulties, which is associated, in turn, with the difficulty in revenues, turnover and also stricter cost control,” he said.
António Baptista, who is president of the Association for the Promotion of Financial Education (Profin), said with the pandemic, “the expectation of families certainly had a reduction to the negative”, in which people were concerned about the future and in this scenario, there was more savings, fear of spending, directly affecting the treasury of companies.
HR / JMV / HVF