The number of bankruptcies and restructuring of Polish enterprises will increase by 10-15% throughout 2022, assesses the Export Credit Insurance Corporation (KUKE). In the previous 12 months, there were 2,171 cases of insolvency (compared to 1,342 in 2020), of which 17% were liquidation bankruptcies and 1.8 thous. companies entered the path of restructuring. For the latter category, this means more than a twofold increase compared to 2020, while bankruptcies were almost 1/3 less.
In December alone, bankruptcy was announced for 26 activities (3 less than in November and 16 less than in December 2020), it was reported.
“It is very difficult to forecast the scale of insolvency in the domestic economy for the next year, due to, for example, further changes in the law regarding restructuring, but also due to volatility in the markets, geopolitical tensions and uncertainty related to the duration of business aid programs at our most important trading partners. Unfortunately, no has doubts that the third year of the pandemic will bring a continuation of the difficulties in economic activity, which appeared unexpectedly in 2021. As a result, insolvencies should be expected to increase by at least 10-15%. financing costs due to interest rate increases, high energy and fuel prices, rising labor costs and shortages of qualified workforce, as well as difficulties in obtaining components, primarily electronics, and raw materials, including wood. aid, although they will probably still be dos available support funds for particularly endangered industries,” said Tomasz Ślagórski, vice-president of KUKE.
He added that the re-increase in bankruptcies in 2022 will be due to the fact that some of the restructuring that has recently started will not have a positive effect.
“It is difficult to say to what extent entrepreneurs will benefit from the amended procedure for approval of the arrangement, which since December replaced the simplified restructuring. The latter procedure, which was in force for a year and a half of the pandemic, quickly became the most popular instrument, as it allowed for easy time to heal the business. was also abused by a noticeable percentage of entities. The new solution is to eliminate irregularities, and at the same time was designed to support the recovery processes of enterprises after the end of the pandemic emergency in the economy. in total, ie 85.4% less than in November and 73.1% on an annual basis,” Ślagórski pointed out.
The industrial bankruptcy index prepared by KUKE and PFR increased to 0.52% at the end of the year from 0.49% a month earlier (0.73% a year earlier). The index of restructuring commenced fell to 1.13% from 1.18% in November (0.68% in the previous year).
The bankruptcy index in construction in the last month of the year continued to decline to 0.67% from 0.73% recorded a month earlier (a year ago it was 1.05%). For the initiated restructuring, the indicator also decreased – to 1.75% from 1.77% in November (1.17% in December 2020), it was also indicated.
In the retail sector, the bankruptcy index fell to 0.54% from 0.6% in November. A year ago it was at the level of 0.67%. The index of restructuring commenced fell to 0.7% from 0.75% a month before (0.53% a year earlier).
In transport and logistics, the bankruptcy index continued to decline – to 0.47% from 0.54% in November and 0.88% in December 2020. The rate of restructuring initiated fell to 0.84% (from 1.05% in November and 0 , 98% a year ago).
The insolvency index in the service industry decreased from 0.91% to 0.87%. A year ago it was 0.92%. The restructuring commenced index ended the year with a decline to 1.89% from 1.99% after November. In December 2020 it was 0.97%.
KUKE insures the commercial transactions of Polish entrepreneurs. As the only company in Poland, it also provides insurance for long-term export investment projects and products with guarantees from the State Treasury. It belongs to the PFR Group.
Source: KUKE and ISBnews
