On the Main Challenge of the Current Global Financial and Economic Crisis

The contemporary financial crisis has transformed into economic crisis or financial-cum-economic crisis. The occurrence of financial crises has encouraged the emergence of a kind of routine which guarantees the stability of a government's bailout programmes implemented through the banking sector in support of de-facto bankrupt firms. As a result, a network of zombie-banks and zombie-firms develops upon which the entire system of a zombie-economy rests. It is of great importance, therefore, the extent to which a government will go to continue supporting insolvent companies and banks in the post crisis period and to what extent it will facilitate simplifying the bankruptcy procedures. © 2010 Bull. Georg. Natl. Acad. Sci.