Economic situation - Number of insolvencies weakens slightly in fall
The wave of bankruptcies among German companies slowed somewhat in November. According to the Federal Statistical Office, the number of regular insolvencies filed with the local courts still rose by 18.8% compared to the same month last year. However, this was almost four percentage points less than in October with an increase of 22.4 percent. The growth rates have already been in double figures since June.
In recent years, many companies have been saved from insolvency with state aid due to coronavirus and the energy crisis. The current increase is therefore seen by experts as a normalization. The current figures are also still well below the index value of the 2015 statistics. The proceedings are only included in the statistics after the first decision by the insolvency court. In many cases, the actual date of the insolvency application is almost three months earlier.
The Federal Office presented final figures for the first three quarters of this year. According to these figures, the local courts reported 13,270 corporate insolvencies applied for in the nine months. This was 24.7 percent more than a year earlier. Creditors are claiming 21.1 billion euros in the proceedings, compared to 10.8 billion euros in the same period last year.
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The insolvency number decline in Germany, led by Destatis, was marginal in November, despite a 18.8% surge compared to the previous year. This is attributed in part to the normalization process following the aid provided to companies during the coronavirus and energy crisis periods. The city of Wiesbaden, known for its local courts, continues to see a rise in insolvency applications, with a 24.7% increase in the first three quarters of the year. The escalating insolvencies and insolvency claims of 21.1 billion euros are concerning elements of the current economic situation in Germany.
Source: www.stern.de
