Euler Hermes: Bankruptcies rising fast worldwide
The number of companies going insolvent is set to rise at an annual rate in excess of 25% for the next two years.
World leading credit insurer Euler Hermes, hit hard by the Woolworths collapse, issued the warning this week.
According to the company’s ‘Global Insolvency Index’, corporate insolvencies will increase by 25.1% this year and 25.4% in 2009.
The US is one of the hardest hit countries.
Last year, corporate insolvencies in the US leapt 44%, and the country is bracing itself for an even bigger increase this year.
Euler Hermes predicts that these drastic jumps in US corporate crashes could hit 50% in 2009.
Europe’s insolvency trend is also worsening, increasing 13.5% this year and predicted to increase 16.7% next year.
France and Germany will both see consecutive yearly rises of around 12%.
The UK’s figures are less promising, with a 24.7% increase in bankruptcies predicted for this year, rising to 34.2% next year.
Japan escapes the most lightly, with an insolvency increase of 12% this year, falling to a 7.9% increase in 2009.
Euler Hermes last week issued a fourth quarter profit warning following the collapse of UK high street chain Woolworths.
Category: Allianz News, Financials, Insurance News
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