An economist has presented a comprehensive strategy aimed at resolving the mounting debt burden within the private sector, highlighting structural reforms and financial restructuring as key components. The proposed roadmap emphasizes improving corporate governance, enhancing access to long-term financing, and establishing specialized mechanisms for debt resolution to prevent systemic risks.
The plan calls for stronger coordination between regulatory authorities and financial institutions to identify vulnerable firms early and facilitate debt restructuring before defaults escalate. It also recommends incentivizing equity-based financing over excessive leverage and promoting transparency in corporate balance sheets to restore investor confidence.
Additionally, the strategy underscores the importance of macroeconomic stability, suggesting that sustained growth, controlled inflation, and prudent fiscal policies can create a conducive environment for reducing leverage ratios across industries. The economist warned that without timely intervention, high debt levels could constrain investment, weaken productivity, and expose the economy to external shocks.
The proposal aligns with broader efforts to strengthen financial resilience and ensure sustainable economic development, particularly in emerging markets where private sector borrowing has surged in recent years.
— news from \”البوابة نيوز\”