Tuesday 29 November 2022

Bankruptcies hit lowest level in 20 years, thanks to coronavirus support

Photo: Depositphotos.com

In total, 2,703 companies were declared bankrupt in the Netherlands last year, the lowest figure in 20 years, national statistics agency CBS said on Tuesday.

The total is down 16% on 2019, due to the impact of government support measures for companies hit by the coronavirus crisis, the CBS said.

Economists and other experts expect the bankruptcy rate to rise sharply when government support is phased out and the crisis is under control.

However, not all sectors reported a drop in the number of bankruptcies and the hospitality industry results show a rise, particularly in the second quarter of the year, the CBS said.

The drop in bankruptcies was reflected across nearly all provinces, particularly in Zuid-holland and Utrecht. However, there was an increase in the number of bankruptcies in Zeeland province, the CBS said.

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