Islam Times - Eurostat: More EU Firms Face Bankruptcy

Islam Times - The number of bankruptcy declarations in the EU increased by 2.2% in the April-June period of 2022, the latest data from the European statistics agency Eurostat shows.

“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.