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One in Five U.K. Firms Can Barely Cover Debt-Interest Payments

  • Think tank warns of ‘crippling’ debts left by virus borrowing
  • Onward urges Chancellor Rishi Sunak to relax repayment rules

One in five U.K. companies is a “zombie,” with profits only just covering debt interest payments, according to a report by an influential Conservative think tank.

Chancellor of the Exchequer Rishi Sunak should relax the rules on repayment of coronavirus debts, Onward said, as it warned the post-pandemic economic recovery will be hampered by “crippling levels of corporate debt.”