Study: Czech Republic to see rise in bankruptcies

The number of bankruptcies declared in the Czech Republic will hit 1,870 in 2011 – an increase of 186 cases compared to the previous year. The news was revealed by the ČTK news agency on Monday, citing a report by credit insurance firm Euler Hermes. In 2012, the number is expected to decrease again but problems in some fields are expected: a member of the executive board stressed uncertainties in the field of construction as well as in steel manufacturing. Electronic goods producers could also face difficulties next year due to heavy competition combined with a drop in consumer demand. According to the study, bankruptcies in the Czech Republic were far lower in 2008, paradoxically just as the country experienced the first impact of the global financial crisis. There were only 1,110 cases that year, the lowest number since 1996.

Author: Jan Velinger