French bankruptcies hit seven-year high

23rd August 2005, Comments 0 comments

PARIS, Aug 23 (AFP) - The number of business failures in France is set to reach 51,000 in 2005, its highest level for seven years, according to a study by credit insurance group Euler Hermes SFAC, published Tuesday.

PARIS, Aug 23 (AFP) - The number of business failures in France is set to reach 51,000 in 2005, its highest level for seven years, according to a study by credit insurance group Euler Hermes SFAC, published Tuesday.

A total of 25,496 companies were declared bankrupt or liquidated during the first six months of 2005, a rise of 5.1 percent from the same period a year ago, and Euler Hermes said it expected 51,000 failures for the full year -- "a record level since 1998".

"In an environment of economic slowdown, the difficulties faced by companies have increased," said the study.

It added that an increase in the number of new company registrations in 2003 and 2004 had also been a factor in the figures for the first half of 2005.

New companies are vulnerable during the first few years of trading.

Copyright AFP

Subject: French news, French economy, bankruptcy, Euler Hermes

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