Due to multiple crises and the end of state support for corona, the number of bankruptcies of companies has exploded in the first half of the year. The number of bankruptcies rose by 121 percent to 2,429 proceedings and almost reached pre-crisis levels in 2019.
The corona bubble caused by bankruptcies postponed and delayed by state aid is dissolving. With more than 7,100 corporate and private bankruptcies, this is again 50 percent more than a year ago, according to final figures from the creditor protection association Creditreform. In the case of companies, there is even an increase of 121.2 percent to 2429, or 20 cases per working day.
In the federal states, the number of bankruptcies is increasing, especially in Lower Austria and Vorarlberg (see chart above). Insurers, dealers or carriers are often affected. Not only the number of bankruptcies among companies, but also among private individuals increased by more than a third. Inflation could cause up to 10,000 private bankruptcies this year.
Credit reform: “The beginning of a period of rising private bankruptcies”
“Austria is only at the beginning of a period of increasing private bankruptcies and the end is not yet in sight,” Creditreform boss Gerhard Weinhofer said according to a broadcast on Monday. Given the economic outlook resulting from the multiple crises — supply chain problems, war in Ukraine, inflation, risk of stagflation, unresolved pandemic — new records in private bankruptcy can be expected in the coming years, Weinhofer said.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
