The number of companies declared bankrupt decreased to 62 cases in January of 2014 from 90 cases a year ago, insurer Euler Hermes has reported citing data from the Polish courts. Still, the number of bankruptcies was more than twice higher than five years ago (it was 31 cases in January of 2009), when GDP growth of above 5.0% was noted (vs. last year's 1.6%), the firm stressed.
Also, January usually shows better-than-average results due to accounting reasons. In subsequent months, the decline will be so spectacular, Euler Hermes stressed.
Hence, it expects the whole-year number of bankruptcies to ease only slightly, to the levels seen in 2010-2012. The downward trend could only be reversed, if Polish economy again expanded at a rate of 4-5%, it pointed out.
In January of 2014, there were 18 cases of bankruptcy in the manufacturing industries (vs. 32 cases a year earlier), 17 cases in the services sector (vs. 17, respectively), 12 cases wholesale trade (vs. 12) and 9 cases in the construction sector (vs. 20).
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