Insolvencies will increase this year
The Export Credit Insurance Corporation (KUKE) forecasts that this year the number of insolvencies and restructurings will be 10-15 percent higher than last year.
Last year, we had as many as 2171 cases of insolvencies. A year earlier there were 1342 such cases, according to data from Monitor Sądowy i Gospodarczy. At the same time as many as 1.8 thousand companies decided to restructure. This is more than twice as many as in 2020. In turn, the number of bankruptcies dropped by as much as one third.
This year’s increase in the number of insolvencies may be at the level of at least 10-15%. Entrepreneurs will have to cope with growing costs of financing and high energy and fuel prices. They will also be hit by rising labour costs and labour shortages. In addition, further support programmes are being phased out.
The number of bankruptcies will also increase this year. In part, this will be due to the fact that some of the recently initiated restructurings will not be successful. It is still difficult to predict to what extent entrepreneurs will benefit from the amended procedure for the approval of an arrangement. It replaced the simplified restructuring, which was very popular. The new procedure is effective from December 2021. So far, only 39 restructurings have been announced in December. This is as much as 85.4 percent less than a month earlier.