This eesay focuses on borrowing policies.levels agreed under IMF programs and the World Bank’s non-concessional borrowing policie
If not carefully considered, they can find themselves unable to afford their short term obligations .And may get behind in inventory if they cannot afford those shipments. The reverse can also be true if they were to keep too much cash on hand or buy more lumber than needed and as we all know that the tinme value of money becomes a factor.If goods remain unsold for long periods of time as that money could ahve been invessted in other areas of the business.Management must be aware of micro and macro level economies in order to prepare for future conditions. Covid-19 was a prime example.
There are things that are out of a comapnies control but there are ways that management. Can mitigate these unknown circumstances. By having a balanced book with enough working capital to weather the storm of uncertainty. Boehlje, M. (2020) Working Capital. What Is It And Do You Have Enough? https://ag.purdue.edu/commercialag/home/sub-articles/2020/09/working-capital-what-is-it-and-do-you-have-enough/Writing instructions.COVID-19 has dealt a major blow to world’s poorest countries, causing a recession.That could push more than 100 million people into extreme poverty.That is why the World Bank and the International Monetary Fund .Urged G20 countries to establish the Debt Service Suspension Initiative.
The DSSI is helping countries concentrate their resources on fighting the pandemic.And safeguarding the lives and livelihoods of millions of the most vulnerable people. Since it took effect on May 1, 2020, the initiative has delivered more than $10.3 billion in relief to more than 40 eligible countries.Borrowers commit to use freed-up resources to increase social, health, or economic spending in response to the crisis. They commit to disclose all public sector financial commitments (involving debt and debt-like instruments). They also commit to limit their non-concessional borrowing to levels agreed under IMF programs. And the World Bank’s non-concessional borrowing policies.
Firstly, check on time.
Secondly, be reliable.
Thirdly, be precise.