Bankruptcy in Europe
Monday, March 21, 2005, 00:00
According to research institute Creditforum?s study published in daily Világgazdaság the number of companies going bankrupt has decreased in Eastern Europe and increased in Western Europe. Last year 7,756 companies went bankrupt in Hungary, which is 0.8% more than the year before and the highest figure in the region. In EU member states as well as in Norway and Switzerland a total of 156,245 companies went bankrupt. The one per cent increase compared to 2003 is very diverse, while the number of bankruptcies declined in the UK, they grew by 20% in Greece. The number of bankrupcies declined by 2.1% to 21,298 in the new EU member states of Central and Eastern Europe. However, Creditreform notes that the bankruptcy law is not applied properly in the region, thus the number of companies unable to pay may be higher than the number of bankruptcies.