Read the paragraph carefully and give an answer to the question

The Economic Survey cautions against extended forbearance of credit default, drawing the lessons that extended forbearance in the wake of the 2007-08 global financial crisis led to the build-up of bad loans and dragged down investment rates and economic growth.

If followed through, this would mean a major squeeze on company finances, as they scramble for resources to service loans to avoid bankruptcy, and a big demand on the government to recapitalize the banks it owns, after they recognize and provide for a mass of bad loans

Regulatory forbearance must be an emergency medicine, not a staple diet, is sound advice. A moratorium by banks on debt service by borrowers has been a part of the COVID cushioning to corporates. Many of these firms would face acute liquidity problems when the moratorium ends

Fast growth that embraces all businesses would avert a crisis. Such Goldilocks perfection rarely materializes in real life. Many companies that could survive with access to liquidity could go under when banks think it is time to do their asset quality reviews. The solution is to provide such companies with capital that does not need to be serviced when they do not make a profit on equity

Companies would need a whole lot of capital, to service existing loans and to invest in new production, to cater to the demand thrown up by economic revival. The government had promised a fund to funds that would mobilize large volumes of capital to invest in micro, small and medium enterprises.

This is the time to walk the talk. The equity stakes can be sold later, hopefully at a profit. Special situation funds, private equity, and allocations from retirement savings can be tapped for the needed capital, Managing the investment is the challenge.