The number of bankruptcies in the Czech construction sector will increase by some 17 percent this year, according to the Czech Credit Bureau analysis. In the first six months of 2012, the number of the declared bankruptcies reached 130, which is 67 percent of the number of bankruptcies reported in 2011. “It can thus be expected that the number of bankruptcies in construction in 2012 will be higher than in 2011,” the head of CCB’s analytical department, Věra Kameníčková, told ČTK.
CCB estimates the total number of bankruptcies in the construction sector will reach 229 in 2012, compared with the 196 reported last year. Analysts blame the sector’s high level of bankruptcies on cuts in public investments since construction companies strongly depend on public tenders.
