Increasing risk of corporate insolvency

Increasing risk of corporate insolvency

Allianz Trade predicts that a record number of insolvent companies may fall this year. Construction, chemicals and manufacturing are most at risk.

The difficult economic situation means that the risk of doing business in virtually all sectors has increased sharply. Slawomir Bak, president of Allianz Trade, notes that entrepreneurs are particularly hard hit by energy prices. It is the industries most sensitive to such costs that will face the greatest problems. But in fact, companies operating in no industry can feel safe today. We have high inflation, so further increases in interest rates can be expected. This, in turn, will affect companies’ financing costs.

Allianz Trade is already seeing today that the number of debt collection cases has increased significantly. The same is true of the number of insolvent companies. In July this year we had as many as 215 .


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