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New counting method gives rosy glow to liquidation figures

Tourism

Based on the new means of counting, 14,683 companies were liquidated between May 2014 and the same period a year earlier, monitoring website feketelista.hu reported. This is the lowest number of liquidations in the past five years, a decrease of 21% as compared to last year, but the majority of the change is due to changes in the method for counting company closures.

Thanks to the new procedure, the number of liquidations counted only refers to the number of companies that were closed voluntarily. Involuntary liquidations, which are forced by creditors, are now handled through closed hearings in courts, and they are no longer counted. Forced liquidations in the year between June 2013 and May 2014 were at 24,930, so that, under the old counting methods, the total number of liquidations in May 2013-May2014 was 39,613.

The number of businesses launched in the same period was put at 33,563, so there were actually more companies closing than opening in the past year.

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