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Hungarian bankruptcy rate same as British

Hungarian businesses go bankrupt at about the same rates as businesses in the UK, according to a survey by Creditreform-Interinfo published on Monday.

The survey shows that the rate of bankruptcy procedures, including liquidation procedures called by creditors, was about 62 per 10,000 operating businesses in Hungary last year. In the UK, about 66 businesses for every 10,000 file for bankruptcy each year. Compared to other new EU members in the region, Hungary has far more bankruptcies than Poland, where just 2 of 10,000 businesses go bankrupt, as well as the Czech Republic, where the rate is 42 of10,000, but fewer than Slovenia, where the rate is 196 of 10,000. A record 12,643 Hungarian companies went bankrupt in 2005, 5% more than in 2004, the survey shows. But the number of bankruptcies ending in liquidation rose just 2%. In Poland, the number of liquidation procedures rose 30.4%, while the number in Latvia fell 34.5%. Creditreform noted that, in Hungary, creditors usually receive no more than 3% of claims against liabilities in liquidation procedures. Retail and repair businesses accounted for the largest number of bankruptcies last year (2,375 out of 112,930 operating businesses), followed by construction companies (1,643 out of 43,179 operating businesses) and real estate companies (1,366 out of 162,150 businesses).