FOCUS SHORT

Secondary insolvency to rise this year

THE MOST frequent reasons for entry into insolvency proceedings last year were reduced sales, growing secondary insolvency, and insufficient formation of reserves on the part of businesses.

THE MOST frequent reasons for entry into insolvency proceedings last year were reduced sales, growing secondary insolvency, and insufficient formation of reserves on the part of businesses.



“Another factor that influenced the development of insolvency proceedings was worse access to bank loans,” said Helena Múdra, authorized representative of Euler Hermes in Slovakia, adding that demand for credit insurance grew last year as well as stricter requirements on insurable risk.

Analysts from Euler Hermes expect secondary insolvency in Slovakia to grow in 2010. The revised law on bankruptcy proceedings and its implementation in practice may influence the number of cases of insolvency.

Euler Hermes originally estimated that approximately 900 companies would have problems with insolvency in 2009. According to the Justice Ministry’s statistical data, there were 784 insolvency proceedings last year, which was 13 percent less than Euler Hermes had predicted. The slow pace of court actions also affected the statistics, the company said.

In 2008, district courts in Slovakia registered 841 filings for bankruptcy, while last year it was 1,060. The number of approved restructuring procedures grew from 10 in 2008 to 58 last year. Also, courts reported a higher number of requests for authorisation of restructuring procedures – 78 were filed last year in comparison to 15 in 2008.


Get daily Slovak news directly to your inbox

Theme: Finances and Advisory

Read more articles by the topic

Top stories

Hospital manners expose the toxicity of Kollár

Unjustified privileges overshadow some good news of the coalition's work. Halloween testing will not be repeated during advent time.

PM Igor Matovič (l) and Speaker of Parliament Boris Kollár

Sulík’s party benefits from the dispute with PM Matovič

The Hlas party of former PM Pellegrini is rising, too.

Economy Minister Richard Sulík (l) was charged by PM Igor Matovič (r) to purchase millions of antigen tests.

Highway company has to return more than €115 million to the state

It violated rules while constructing four sections of the D1 and D3 highway.

The construction of the D1 highway stretch between Lietavská Lúčka and Dubná Skala in March 2019.

Investors pursued projects and transactions despite the virus

Investors pursued projects and transactions despite the virus. Check out the 2020 investment highlights from Slovakia.

The visualisation of new Istropolis building