For the fourth quarter running in a row, there has been an increase in the number of requests for insolvency.
The most recent data from the European statistics office Eurostat shows that the number of bankruptcy declarations filed in the EU grew by 2.2% between the months of April and June of 2022.
“The seasonally adjusted number of declarations of bankruptcies increased by 2.2% in the EU and by 2.5% in the euro area, compared with the first quarter of 2022,” the agency said in a report that was published on Wednesday. “In the second quarter of 2022, the number of declarations of bankruptcies increased by 2.2% in the EU and by 2.5% in the euro area.”
Only the proportion of total declarations is provided by the agency, not the actual number of declarations. In spite of this, Eurostat reports that the number of businesses declaring bankruptcy has increased for the fourth consecutive quarter.
During the time period covered by this research, Latvia saw the greatest increase in the number of businesses declaring bankruptcy, which was an increase of 74.4%. It was followed by Belgium, which witnessed an increase of 14.7%, and Denmark, which saw an increase of 11.9%.
According to Eurostat, during this time period, businesses operating in virtually every economic sector in the EU applied for bankruptcy protection.
In comparison to the time period preceding the Covid-19 epidemic, the number of declarations rose significantly across the board, but particularly in the areas of transportation, storage, and accommodation, in addition to food services.
In most cases, filing for bankruptcy marks the beginning of the legal process that aims to determine whether or not a firm is solvent.
It is a court file that is submitted to declare that a company is having financial difficulties; nevertheless, it is frequently provisional and does not always result in the company ceasing operations.