Sharp rise in Dutch bankruptcies

4th July 2005, Comments 0 comments

4 July 2005, AMSTERDAM — There has been a significant increase in the number of companies going bust in the Netherlands this year.

4 July 2005

AMSTERDAM — There has been a significant increase in the number of companies going bust in the Netherlands this year.

Some 5,018 firms have gone bust in the Netherlands in the last six months, 10 percent more than the same period in 2004.

Credit management agency Graydon published figures on Monday revealing a total of 60,000 jobs have been lost due to the bankruptcies. 

Declaring bankruptcy allows a business legal protection for three years in which time deals have to be made with creditors to pay as much of the debt as possible. Any remaining debts are then written off.

The study also shows 7,790 individuals and one-person businesses have made use of debt restructuring this year. Again, this is 10 percent more than a year earlier. 

Graydon expressed pessimism about the rest of the year, forecasting a total of 10,000 bankruptcies and 16,500 instances of debt restructuring for 2005. There were 9,460 bankruptcies in 2004.

The sharpest increase in bankruptcies, Graydon said, was in the northern province of Friesland (28 percent), followed by Gelderland (23 percent) and Groningen (18 percent). 

In contrast, Zeeland and Flevoland experienced a rise of 4 percent more bankruptcies and  Noord Brabant recorded a 2 percent rise.

Drenthe was the only province where the percentage of business failures remained unchanged.

The report by news agency ANP on the Graydon study did not give any details for Noord and Zuid Holland, the provinces in which Amsterdam, Schiphol and Rotterdam are located.

The retail sector, which is experiencing an ongoing supermarket prize war, has been impacted particularly heavily by bankruptcies.

Financial newspaper Het Financieele Dagblad has reported that the major banks - Rabobank, ING and ABN Amro - have been working together to prevent uniquely-Dutch companies from failing. 

[Copyright Expatica News + ANP 2005]

Subject: Dutch news

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