Friday 19 August 2022 - 23:27

Eurostat: More EU Firms Face Bankruptcy

Story Code : 1010065
Eurostat: More EU Firms Face Bankruptcy
“In the second quarter of 2022, the seasonally adjusted number of declarations of bankruptcies increased by 2.2% in the EU and by 2.5% in the euro area, compared with the first quarter of 2022,” the agency said in a report published on Wednesday.

The agency does not give the exact number of declarations, only the percentage. According to Eurostat, however, the number of bankruptcy filings has grown for a fourth quarter in a row.

Latvia observed the largest growth during the reporting period, with the number of companies filing for bankruptcy up by 74.4%. It was followed by Belgium, which saw a 14.7% increase, and Denmark [11.9%].

During this period, companies filed for bankruptcy in nearly all sectors of the EU economy, Eurostat says. Compared with the period before the COVID-19 pandemic, the number of declarations increased particularly in transportation, storage and accommodation, as well as food services.

A bankruptcy declaration is usually the start of the procedure aiming to declare a company insolvent. It is a court filing, issued to announce a financial struggle in a company, however, it is often provisional and does not always lead to the company’s cessation of activities.