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Around 800 Firms Expected to Go Bankrupt in Slovakia This Year
Monday 04 January 2010 Zoom in | Print page
Bratislava, January 4 (TASR) - Slovakia should see only a slight decline in the number of bankruptcies this year. According to estimates published by multinational insurance group Euler Hermes, the reduction is set to be slightly more than 11 percent, meaning that the total number of companies going insolvent should reach around 800 over the next 12 months, 100 lower than was previously expected.
The key factor in coming developments will be governmental support for domestic demand, as well as how much the Cabinet stimulates the labour market, said Euler Hermes Servis Slovakia CEO Helena Mudra.
"What needs to be taken into account, besides the situation on Slovakia's main export markets, are measures that the Government might take in view of the coming general election," said Mudra about a new prognosis covering expected developments worldwide.
The prognosis for 2010 also outlines that the number of firms going insolvent around the world should remain largely unchanged when compared to 2009. Following a 26-percent annual increase in the Global Insolvency Index in 2008 and a 33-percent increase that was expected for 2009, this year's index level shouldn't change at all.
The index, focusing on companies going insolvent and thus finding themselves unable to pay their dues, is a result of a survey carried out in countries that make up more than 81 percent of global GDP put together. Among European countries in which the company-insolvency rate is estimated to rise most dramatically in 2010 are Italy (15 percent), Greece (15 percent) and Germany (9 percent). In Asia it's Hong Kong (23 percent).
"Slovakia is heavily dependent on its exports, and so also on how the situation shapes up in destination countries for our exports. Exporters, however, should also screen their business partners more properly - not only abroad, but also on the domestic market," suggested Mudra.
Euler Hermes Servis began its business activities in Slovakia on July 1, 2004. The company mediates insurance products offered by insurance company Allianz - Slovenska poistovna.
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