now I would like to share is the SOLVING FOR LIQUIDITY AND FINANCE

As the coronavirus pandemic continues spreading in the world, it

brings huge effect on international organizations’ operation. From
macroeconomic view, the huge drop of market demand and production cause a
significant impact on investment, consumption, and exports. Most firms face
the challenges such as significant decline in profit, increase in the fixed costs
such as labor and rental. These factors may lead to liquidity and finance crisis
within an organization.

Therefore, managing cash flow and liquidity positions is crucial during

Covid-19 pandemic to ensure their survivability in financial crisis. Liquidity
means that how easy the assets can be converted into ready cash. Poor cash
flow could be fatal to international organization as it might lead to bankruptcy.
Therefore, the international organizations are forced to implement more
specific cost control to maintain healthy cash flows. Most of them plan to
reduce their fixed costs and variable costs and review their capital
expenditures to increase their liquidity.

(next page)
Next, it is important to take efforts to maintain good relations with
financial partner and institutions to strive for credit support and to reduce the
pressure on repayment of debts. Moreover, The Banking and Insurance
Regulatory Commission and our governments have introduced some policies
to provide financial support to those firms which are temporarily experiencing
financial difficulties. For example, financial institutions are required to extend
the duration of repayment, lowering loan interest rates, increasing credit loans
and medium or long-term loans that could help the organizations in solving
their financial problems.

Besides, there are a good way such as implement business

restructuring strategy. Though this strategy, they could review the overall
business performance and financial status, then go through a series of
restructuring such as improving working capital, reduction of costs, disposing
of non-core assets, debt restructuring, and finding new investors. In
restructuring process, most organizations would sell off under-performing
businesses or withdraw funds from investing projects to reduce their costs and
expenditure. Through reorganization, it allows companies to achieve a more
effective company structure, cost-effective business model and better liquidity.

For example, Caterpillar Inc. suspended the short-term incentive compensation

of their employees for half year to reduce their cash outflow and issued long-
term bonds to outsiders to raise more business funds.
That all, our member will go to the next point