Swiss companies filing for bankruptcy rise 23%
The number of firms going bust in Switzerland rose by 1,221 between September and November.2 December 2008
ZURICH – More Swiss companies filed for bankruptcy between September and November, while the number of new companies created tumbled due to the financial crisis, a study showed on Monday.
Between September and November, the number of firms going bust rose by 1,221, up 23 percent compared to the equivalent figure in 2007, Dun & Bradstreet, a commercial company information firm said.
Meanwhile, the number of new companies created fell 16 percent to 2,522 in November alone, said the firm.
The company estimated that for the full year of 2008, the number of bankrupt firms would rise 1.5 percent to 4,050, while new companies registered would stagnate at 36,400, against 36,427 in 2007.
"The drastic deterioration of payment discipline shows that more companies are hit by liquidity problems that they cannot resolve without external aid," said the firm.
The textile and clothing industries were particularly affected, with bankruptcy rising some 61 percent.
Switzerland's banking industry was among the first victim of the financial crisis, with its biggest banks UBS and Credit Suisse both forced to post massive asset writedowns.
UBS also had to resort to state help worth almost USD 60 billion (CHF 71.5 billion).
With the crisis widening to the real economy, officials had warned that Switzerland, which is reliant on its exports, would post negative growth in 2009.
[AFP / Expatica]