2024-07-15 07:58:51
The wave of insolvency that hit German business has slowed, growing by single digits for the first time in a year, DPA reported, citing BTA.
Data from the Federal Statistical Office Destatis showed the number of bankruptcy cases filed in local courts rose 6.3 percent in June compared to a year earlier, well below the 26 percent rise , registered in May.
Courts have three months after the cases are filed to decide whether to open bankruptcy proceedings. The latest available data shows that 1,906 new productions were started in April 2024, which is an increase of 33.5 percent compared to the previous year.
Claims on creditors totaled 11.4 billion euros ($12.4 billion) in April, compared with 1.3 billion euros in the same month last year.
For every 10,000 German businesses, an average of 5.5 (or 0.055 percent) filed for bankruptcy in April. Transport and warehousing firms were the most affected, with 10.1 cases per 10,000 businesses, and the construction and hospitality sectors with 8.5 and 7.4 cases, respectively.
The number of private bankruptcies also rose sharply in April, rising by 27.9 percent to 6,277 cases over the year.
Faced with the effects of the coronavirus pandemic, high energy prices and increased interest rates, more and more German companies are struggling to avoid bankruptcy.
Experts expect the number of corporate bankruptcies in Germany to rise to around 20,000 this year, up from 17,814 registered by the Federal Statistical Office in 2023.
Although high, bankruptcies remain far below those reported during the 2009 financial crisis, when almost 33,000 German firms filed for bankruptcy.