Bankruptcies Drop by 40% in 2011

Photo: Postimees/Scanpix
3/20/2012 3:37 PM
Category: Economy

The business credit reporting agency Krediidiinfo has announced that 623 Estonian companies went bankrupt last year, 40 percent fewer than in 2010.

The drop marks a sharp contrast from the 2009/2010 comparison, when the totals were nearly the same, falling by just 2.5 percent. The speed at which bankruptcies are decreasing puts Estonia second, after Latvia, among other EU countries and sets the nation's bankruptcy rate at 0.39 percent for the year.

Krediidiinfo Deputy Director Alar Jäger told ERR News that last year's bankruptcies were concentrated in three sectors: construction, wholesale and retail trade, and restaurants and hotels.

EU-wide, Bulgaria saw the highest bankruptcy growth last year, with its total jumping by 114 percent compared to 2010. Slovenia was next at 32 percent followed by Greece and the Czech Republic. In relative terms, however, Estonia's figure - 39 bankruptcies per 10,000 companies - was still eight times less than Greece's five.


Steve Roman

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