Saturday 03 December 2022

Bankruptcies up 9% this year, rise of 77% expected in 2023

Bankruptcies on the rise  Photo: Depositphotos

Bankruptcies are expected to rise by 77% in the year ahead, business experts have told the Financieele Dagblad.

With the end of very low interest rate loans and government coronavirus support packages, credit insurer Atradius expects a strong rise in companies going bust in 2023.

Atradius says that bankruptcies have risen 9% this year, compared with 2021, and expects another 77% rise on this year in 2023. ‘We expect things to return to the pre-corona level,’ senior economist Altradius Theo Smid told the paper. ‘Some of the companies that have been kept afloat due to government support will still fall.’

Earlier this week, experts told the FD that ‘zombie companies’, which make enough to pay wages but not enough to service their debts, may also be victims of global interest rate rises.

Thank you for donating to DutchNews.nl

The DutchNews.nl team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments.

DutchNews.nl has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.

If you have not yet made a donation, but would like to, you can do so via Ideal, credit card or Paypal.