Number of Companies Declared Bankrupt Up by 112 percent Y-o-Y in July

Bratislava, 10 August (TASR) - The number of bankruptcies declared for the property of corporate entities amounted to 34 in July, up by almost 42 percent from the 24 reported in June, Slovak company Credit Bureau (CRIF) stated on Tuesday, adding that the figure grew by as much as 11 percent year-on-year (y-o-y) from the 16 seen last July. "Bankrupt companies had high arrears, owing €959,000 to social-insurance provider Socialna poistovna, €319,000 to state-run health-insurer Vseobecna zdravotna poistovna (VsZP) and more than €1.53 million to tax offices. The state thus incurred financial damage amounting to €2.81 million. Two companies that were allowed to carry out restructuring made up the biggest share of them," said CRIF. The biggest debtor was Bratislava-based buyer and processor of non-hazardous waste Palkov, followed by joint-stock company engaged in quarrying and sandblasting Kamenolomy a Strkopieskovne (KAS). A total of 27 limited-liability companies, four joint-stock companies, two simple joint-stock companies, and one cooperative filed for bankruptcy in July. "Financial problems hit mainly the economically stronger west of Slovakia, but also the poorer east. Companies are already fully feeling the consequences of [fiscal] consolidation, but also the global impacts of the European Union's weakening economy," said CRIF chief analyst Jana Markova. ko/df/am