The European Commission has launched a public consultation on an initiative for a roadmap for the introduction of a Debt Equity Bias Reduction Allowance (DEBRA). The feedback period ends 12 July 2021.
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About this initiative
Summary
This initiative aims to encourage companies to finance their investment through equity contributions rather than through debt financing. Over-indebtedness could threaten the stability of the financial system and increase the risk of bankruptcies, which wo…