The corona crisis is causing a deep recession worldwide. The number of bankruptcies will rise by 26% worldwide this year , according to credit insurer Atradius, . In the Netherlands, there are likely to be over 34% more bankruptcies in 2020 than in 2019.
Further rise in bankruptcies in 2021
Whereas in 2021 the number of bankruptcies worldwide is expected to fall by 3%, Atradius predicts a 4% increase in the Netherlands next year as well.
Difference in legislation
Despite the fact that the Dutch economy is shrinking less rapidly than in the countries around us , there is a high percentage increase in insolvencies. The high increase has two causes , according to Atradius:
- One reason for this is that other European countries have passed laws which , for example, do not-admissible or temporarily freeze proceedings. In the Netherlands, this is not the case.
- In addition, it has to do with Dutch bankruptcy legislation. Current legislation makes it difficult to intervene early when companies are struggling. However, it is worth mentioning that new legislation is on the way to make this easier.
Barely increase first half of 2020
Due to various government support measures at the beginning of Corona barely increased bankruptcies in the first half of 2020 . Without these government measures, the increase is expected to have been a lot higher.
Unfortunately, it is most likely not possible to sustain this in the long term. In the near future, the support measures will partly or perhaps even completely completely disappear , leaving some companies struggling.
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