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Deutsche Bank chief warns of 'zombie' firms in pandemic

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FRANKFURT : Deutsche Bank's chief executive on Wednesday warned that government aid to ailing firms to cope with the coronavirus pandemic may lead to "zombie" companies that end up weighing on the German economy.A large number of so-called zombie firms in Germany would have "a serious impact on the productivity of our economy," Christian Sewing said in a speech in Frankfurt."Zombie" companies are businesses that survive on the back of government subsidies or bailouts, avoiding the insolvency they might otherwise suffer, and are seen as a driver of inefficiencies in an economy.The government of Chancellor Angela Merkel has pledged over one trillion euros ($1.2 trillion) in aid to shield companies and citizens in Europe's top economy from the.

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