Bank­rupt­cies grew five­fold in last decade

Kathimerini English - - Focus -

Cor­po­rate bank­rupt­cies in Greece are still a stag­ger­ing five times what they were in the pe­riod be­fore the out­break of the fi­nan­cial cri­sis, de­spite the small 2-per­cent­age point de­cline recorded so far in 2017, ac­cord­ing to in­ter­na­tional credit in­sur­ance com­pany Atra­dius.

The 2 per­cent de­cline is the small­est drop recorded among euro­zone mem­ber-states, while Greece re­mains on top of the 22 coun­tries Atra­dius mon­i­tors in Europe and be­yond in terms of bank­rupt­cies.

While Greece’s rate is cur­rently five times what it was be­fore 2009, in Por­tu­gal it is four times as high, in Italy 2.4 times, in Ire­land 2.2 times and in Spain it is twice as high.

The busi­ness sec­tors of food and elec­tron­ics are ex­pected to be among those to en­joy a re­duc­tion in their bank­ruptcy rate, un­like the con­struc­tion, ap­parel and ma­chin­ery sec­tors, which will con­tinue to see high bank­ruptcy lev­els, the sur­vey has found in Greece.

The lo­cal credit sys­tem re­mains en­trapped in the prob­lem of non­per­form­ing loans, which ac­count for 37 per­cent of their to­tal port­fo­lios, Atra­dius says. This ham­pers lend­ing to the pri­vate sec­tor, it adds, call­ing for the swift en­force­ment of the re­cent law for clear­ing out or sell­ing bad loans.

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