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Bankruptcy filings are growing

THE NUMBER of bankruptcy proceedings in Slovakia in the first quarter of this year grew by 50 percent year-on-year. While in the first three months of 2009, courts approved 85 filings for bankruptcy, this rose to 128 in the same period of this year. The statistics were prepared by the international export credit insurer Euler Hermes.

THE NUMBER of bankruptcy proceedings in Slovakia in the first quarter of this year grew by 50 percent year-on-year. While in the first three months of 2009, courts approved 85 filings for bankruptcy, this rose to 128 in the same period of this year. The statistics were prepared by the international export credit insurer Euler Hermes.

“Impacts of the economic crisis in Slovakia are displayed with a delay,” said Helena Múdra, the authorised representative of Euler Hermes in Slovakia. “In spite of a positive tendency of recovery in the macroeconomic sphere, recovery on the corporate level might be delayed in our country.”

Predictions of how many bankruptcy proceedings will be terminated because of insufficient property are not available. But Euler Hermes estimates about 800 proceedings will be started this year.

Euler Hermes also reported an increase in the number of restructuring procedures started by Slovak courts. During the first quarter of 2010 their number grew two and a half fold. The number of approved restructuring proposals by courts swelled five-fold. Most numerous were limited-liability firms, followed by private individuals.


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