The scale of insolvency is growing

The number of enterprises having problems with paying their receivables is systematically increasing.

Data taken from the National Debt Register (KRD) shows that the scale of insolvency of enterprises is growing every month. The debt of companies that went bankrupt in the fourth quarter of last year amounted to PLN 53.5 million. Their bankruptcy is a serious problem for their contractors who have lost the chance to recover overdue receivables. The vast majority of bankrupt companies have been listed in the KRD for a long time. Two years before declaring bankruptcy, 36% of future bankrupts were entered in the KRD, 43% a year before the closure of the business, and half a year before closing the business. All this time, their state of insolvency deepened. This, in turn, resulted in increasing payment backlogs and had a negative impact on the functioning of contractors.

Moreover, the KRD data made it possible to distinguish certain variables defining the specificity of companies facing insolvency problems. First of all, this problem was most often faced by enterprises located in the Wielkopolskie, Opolskie and Mazowieckie voivodeships. Secondly, it concerned companies. Thirdly, companies from the commercial (PLN 7.1 million) and construction (PLN 3.4 million) sectors had the biggest problem with paying overdue receivables.

Source: https://biznes.interia.pl/firma/news-firmy-bankruci-nie-zwrocily-ponad-53-5-mln-zlotych,nId,6596775