Business bankruptcies increased in Germany in September

According to a statement from the German Federal Statistical Office (Destatis), bankruptcy filings in September increased by 19.5 percent compared to the same month last year. In August there was a 13.8 percent increase in bankruptcies in the country compared to the previous year.

Destatis reported that bankruptcies were included in the statistics after the first court decision.

The office also announced the final data for July on bankruptcies of companies and individuals in the country. Consequently, the number of companies that went bankrupt in July increased by 37.4 percent compared to July 2022, reaching 1,586.

COMPANIES IN BANKRUPTCY LEAVE A DEBT OF 3.1 BILLION EUROS

In July 2023, the highest number of bankruptcies occurred in the transportation and storage sector, with 8 cases per 10,000 companies. The construction industry followed with 7.1 cases per 10,000 companies.

The energy supply sector was the sector with the lowest incidence of bankruptcies, with 2.4 cases per 10 thousand companies.

Debt expected to be paid to creditors in connection with company bankruptcy claims was recorded at €3.1 billion. The debt in question amounted to approximately 800 million euros in July 2022.

BANKRUPTCY REQUEST FOR 5 THOUSAND 668 DEBTORS

In addition to company bankruptcies, 5,668 debtors also declared bankruptcy in July. The figure in question increased by 6.9 percent compared to the same period in 2022.

The German economy, which has experienced significant job losses in many sectors due to the Covid-19 crisis, has been negatively affected in recent months by the energy crisis, the lack of qualified and material employees and high inflation.

The tightening of monetary policy by the European Central Bank (ECB) also increases the financing costs of German companies. (AA)