Sharp decline in number of bankruptcies

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The Netherlands showed one of the sharpest declines in numbers of company bankruptcies of the whole EU last year.

12 February 2008

DUSSELDORF – The Netherlands showed one of the sharpest declines in numbers of company bankruptcies of the whole EU last year. A total of 4,710 companies went under, a decrease of 20.7 percent.

The number of bankruptcies in the Netherlands is therefore at its lowest level in six years. This emerged from a study published on Tuesday by German research bureau Creditreform.  

Only in Italy was there a relatively steeper decline in bankruptcies – 38.7 percent to a total of 5,410 cases.

This strong decrease is partly due to amendments to Italian bankruptcy legislation. Germany came in third place with a decrease of 10.4 percent to a total of 27,490 bankruptcies.

The number of bankruptcies in the EU as a whole (plus Switzerland and Norway) fell by 5 percent to 129,822. There was a much larger decrease of 12.3 percent in 2006.

The number of countries in which the number of bankruptcies increased doubled last year to six. In Denmark the number of companies that had to apply for a moratorium on payment increased by almost 21 percent to 2,400, for Luxembourg the number increased by 7.3 percent to 680.

In the US a total of 18,500 companies applied for a moratorium in 2007, a decrease of 6.1 percent compared to a year earlier.

Statistics Netherlands reported last week that the total number of persons and businesses that declared bankruptcy in the Netherlands last year fell by 13 percent to just under 8,000.

Excluding one-man businesses, less than 3,500 companies went under in 2007, a decline of 15 percent compared to 2006. The number of company bankruptcies has been declining in the Netherlands for the past three years.

[Copyright Expatica News + ANP 2008]

Subject: Dutch news

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