Hoping something will turn up is a natural reaction when the alternative is facing up to the inevitable and taking steps that crystallize losses and directly affect the stakeholders of firms including the employees and trade creditors. But the hidden consequences of procrastination impose costs elsewhere in the economy – costs that destroy even more jobs elsewhere.
That was the experience of Japan in the 1990s, and Ireland can’t afford to suffer a similar protracted delay. An unhealthy firm balance sheet means that access is denied to new funding that can enable expansion, upgrading or innovative investment that could generate output and employment growth.