The number of elderly workers exceeds 26.65 million, which means that there is a huge problem in the social credit system. This reflects the fact that many people or businesses are unable to repay their debts on time and have breached their contractual obligations, resulting in a judgment as a judgment debtor.
There are several reasons why there will be a lot of bosses in 2024:
1.Pandemic Impact:The pandemic in 2020 severely affected economic activity, with many businesses at risk of bankruptcy and having to accumulate large amounts of loans to stay afloat. However, when the loan matures, these businesses are still struggling to return to normal profitability and are unable to repay their debts.
For example, the travel industry has been hit hard during the pandemic, with many hotels, travel agencies and airlines at risk of closure and unable to repay bank loans.
2.Economic Depression:Between 2022 and 2023, the economic situation is sluggish, and many industries are facing difficulties, with declining sales and reduced profits. This has led to a strained cash flow for many businesses and the inability to repay their payments on time.
For example, a manufacturing company is unable to pay the first merchant and employee wages due to the decline in market demand and the sharp decline in sales, and is finally executed as a cheater.
3.The capital chain is broken:Many businesses have had to rely on bank loans or borrowed funds to fill cash flow gaps in order to stay operational during the pandemic. However, the breakdown of these funds** has made it impossible for businesses to repay their debts.
For example, a real estate developer was sued by the bank for failing to pay the principal and interest of the loan after the capital chain was broken.
These circumstances have sparked large-scale lawsuits that have had a serious impact on the credit profile of the companies involved. Enterprises subject to enforcement may face the risk of property being seized, auctioned, or even liquidated. Credit problems can make it difficult for companies to obtain new loans or purchase services on credit, further worsening their business conditions.
Overall, more than 26.65 million people have become old friends, reflecting the intensification of financial risks and the unstable economic environment. This has had a serious negative impact on enterprises and the entire social credit system, and measures such as risk management, credit assessment and loan review need to be strengthened by financial institutions and enterprises to prevent the recurrence of similar situations. February** Dynamic Incentive Program