On February 21st, a timely rain of debt policy is injecting vitality into the environmental protection industry, which is deeply mired in repayment difficulties. Recently, several listed environmental protection companies have successively announced good results in payment collection, with payment amounts ranging from hundreds of millions to billions of yuan, and some companies have broken monthly payment records. In recent years, the environmental protection industry has been one of the industries with a relatively serious situation of accounts receivable arrears. Due to many projects being carried out in PPP mode, coupled with the increasing financial burden on local governments, the problem of difficult accounts receivable collection for enterprises has become increasingly severe. On the one hand, it significantly increases the risk of bad debts for enterprises, and on the other hand, it also endangers the health of their cash flow. Reporters have found that behind this wave of cash flow recovery, there is a direct focus on the implementation effect of the Ministry of Finance’s new policy of converting 12 trillion yuan into debt – the improvement of local government payment capacity, and the accelerated return of long-term arrears of environmental protection project accounts. (Securities Times)
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