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.


Top stories

News digest: Central bank calling vaccination pace more important than that of GDP growth

Police announced strict border checks for tomorrow. Ministry analysts revised their GDP growth prognosis. Employees of U.S. Steel in Košice threaten a strike.


8 h
Irena Matova

She cannot read, she does not understand. Last victim of police raid still faces prosecution

Human rights organisations have been calling for the proper investigation of alleged police violence in the case of the 2013 Moldova raid.


9 h
Prologis Park Bratislava

Once an ugly duckling, the pandemic has the turned logistics real estate sector into a desirable investment opportunity

The sector will continue to be driven by e-commerce, the automotive sector and the global trend of sustainability.


10 h
EC President Ursula von der Leyen and Slovak PM Eduard Heger during a press conference in Bratislava when announcing that EC approved the Slovak recovery plan.

EC approves Slovakia’s recovery plan

EC President Ursula von der Leyen said the plan meets criteria and is also ambitious.


21. jún