Czech insolvencies up 56% in H1 2011.

By bne IntelliNews July 7, 2011
The number of insolvency proceedings in the Czech Republic increased by 56% y/y to 11,440 in the first half of 2011, CTK newswire reported citing data from credit agency Creditreform. Individuals accounted for the majority of cases as their number rose by 76% to 8,243. In June alone, insolvency claims totalled 2,146, the second highest monthly result in more than three years. The highest number of 2,169 claims were registered in March 2011. IntelliNews comment : The increasing number of insolvencies in the country can be attributed to the effects of the global financial and economic crisis, which has severely affected the strongly export-oriented economy. However, while the business sector is gradually recovering, the labour markets developments are still adverse due to the time lag with which the labour market reacts, which explains the considerable increase in the number of personal insolvency proceedings. The number of companies in insolvency proceedings is to continue growing in the next months but at a slower pace, while that of individuals will keep its fast pace of increase.
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