The number companies that declared bankruptcy in Poland in the first quarter rose by 29 percent to 224 from the same period a year earlier, according to a report published by Euler Hermes, a credit insurance company that offers a wide range of bonding, guarantees and debt collection services .
As Radio Poland reports, the number of insolvencies was higher in the following three sectors compared to the same period in 2016: construction, manufacturing and services.
One of the authors of the report, Grzegorz Błachnio, said this tendency will not be as strong throughout the year as it is now. Błachnio added that in the first quarter the biggest increase in bankruptcies was in central, south-eastern and southern Poland.
In another report headlined as Insolvencies: The tip of the iceberg Euler Hermes reports that, insolvencies will rise by +1% in 2017 on a global basis, the first rise in seven years. According to the report bankruptcies are on the rise in Asia-Pacific and in the Americas, and Europe’s improvement is fading.
Among the major EU states, German insolvencies are expected to slightly grow by +1% to around 23,000 cases from the reported 22,750 in 2016 – ending a seven year downward trend. Failures in both Russia and Poland are expected to grow by +3% each. Across the continent as a whole, insolvencies will fall by -4% in Western Europe and -1% in Central and Eastern Europe this year. French business failures are likely to decrease by -7% in 2017, with Italian and Spanish firms not far behind, expecting a fall of -5% each.
However, the decrease may not be cause for celebration. Increasing non-payment risk from trade partners and political uncertainties might darken European corporates’ outlook.