Globally, including within Europe, Central Banks have taken prompt action to give breathing space to governments and economies through loosening monetary policy, which has facilitated much greater fiscal flexibility and massively reduced the risks of liquidity risks in the financial system affecting its support of the real economy.
Moreover, flexibility given to banks in particular to use buffers and to accommodate payment moratoria have dampened the risk of credit squeezes, at least in the short https://www.centralbank.ie/news/article/speech-braving-the-storm-ed-sibley-4-nov-20  3/7  06/11/2020  “Braving the storm: the unprecedented challenges facing SMEs” - Deputy Governor Ed Sibley  term.