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10,000 firm went belly-up this year

The number of companies being liquidated in 2010 exceeded 10,000 today, while this number was reached only by the beginning of September last year. The construction industry is still the most vulnerable, but as a new tendency, they seem to be waiting until the very last moment with starting a liquidation procedure, said Hajnalka Csorbai, strategic director of Opten, a company that regularly reports on liquidations and bankruptcies.

“Most construction companies go under in the middle of the high season. It shows that they are hopeless to receive any loans that would improve their situation,” Csorbai said.

Not only the construction industry, but all sector experience that it is difficult to return from worsened liquidity. Cients avoid these companies thus making the situation worse. Many companies that had steady operation before now face difficulties, Opten said.

“Same time last year, we expected that liquidation, although at a high level, but will stabilize by now. We were optimistic,” Csorbai added. (BBJ)