Bankruptcy
The highest level for company bankruptcies for 20 years
The IWH presents new figures on bankruptcies in passenger and corporations. The aprilate even exceed the values from the time of the 2008/2009 financial crisis.
The number of bankruptcy and corporations in Germany has reached the highest value in 20 years. According to the Leibniz Institute for Economic Research Halle (IWH), there were 1,626 bankruptcies of passenger and corporations in April. That is 11 percent more than in the previous month and 21 percent more than a year ago. The April numbers even exceeded the values from the time of the 2008/2009 financial crisis. “For the last time in Germany in July 2005, more insolvent people and corporations were counted.”
According to the IWH, one reason for the recently higher than expected values was an unusually high proportion of small bankruptcy proceedings. “If the proportion of smaller bankruptcy proceedings now approach the long-term average again, I will expect falling bankruptcy figures for the coming months,” says Steffen Müller, head of IEWH insolvency research. “Nevertheless, we will experience more company bankruptcies in Germany for the foreseeable future than last year.”
The institute raises early indicators that run the bankruptcy two to three months ahead. Insolvency announcements are evaluated every month and linked to the company’s balance sheet data.
dpa
Source: Stern
