April 17, 2020

Episode #09: Canadian firms are experiencing liquidity challenges, so what can we do about it?

As COVID-19 continues to have devasting impacts throughout the economy, many of Canada’s larger firms are experiencing significant challenges to liquidity.

Co-hosts Adam Legge and Scott Crockatt discuss the state of liquidity in Canadian firms right now as a result of the economic impact of COVID-19 and low oil prices with Adam Waterous, Managing Partner and CEO of Waterous Energy Fund.

We look at the key liquidity challenges Canadian companies are facing and assess whether the federal government’s current relief programs for business solve the liquidity problem. We talk about what implications exist for these companies and the broader economy if they can’t access the financial resources they need in the short term.

Adam also provides his framework and recommendations for an effective liquidity program that provides comprehensive relief and support for Canadian firms facing these challenges, provides some economic confidence and minimizes the risk of mass bankruptcies.

In This Episode:

  • Introduction to liquidity in Canada: what it is, how it works and what challenges exist for firms in terms of liquidity right now
  • How well current liquidity programs are helping Canadians firms address challenges and what gaps still exist
  • Designing an effective liquidity plan: what solutions will work, what will not and how we know it is working

Key Takeaways:

  • While the response programs for businesses are constructive, they don’t do much to address the liquidity issue, and Canadian companies, especially those in some of the hardest-hit sectors, need effective support now

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