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Number of insolvency procedures in Hungary grows 10% in 2010

The number of insolvency procedures at Hungarian companies grew at a slower rate in 2010, climbing 10.5% from the previous year to 32,182, the latest data compiled by credit insurance and factoring company Coface Hungary shows, Coface told MTI in a statement.

The number of insolvency procedures at Hungarian companies grew in 2009, climbing 36%. The number grew at the fastest rate in the past five years in 2009. The 2010 growth was the slowest since a 5.8% rise recorded in 2005.

The number of mandatory liquidation procedures, which account for more than 54.5% of all procedures, grew 17% in 2010 from the previous year. The ratio of voluntary liquidations increased 2 percentage points. There were just 343 bankruptcy procedures during the period.

Micro- and small businesses continue to carry the biggest risk, with 86% of insolvency procedures initiated among companies with annual turnover of less than HUF 300 million.

The construction industry and retail and wholesale trade remain the riskiest sectors from the point of view of the number of liquidations. (MTI – Econews)