How much do Greek non-viable enterprises cost: Findings from an enterprise restructuring simulation exercise.
More than 16.5% of the total productive capacity (assets) of the non-financial sector of the Greek economy is trapped in non-viable business schemes. The results of the simulation exercise according to which the total assets and a part of liabilities of the enterprises identified as non-viable are absorbed by viable enterprises of similar size show that the potential profitability (EBITDA) and operating revenue increase is estimated at €2.6 bn and €16.7 bn respectively. The liabilities that – through their takeover by viable enterprises – could be repaid again amount to €15.9 bn. The cost of restructuring in terms of “haircutting” part of the liabilities – that will not be transferred to the viable enterprises – is estimated at €7.6 bn.