Tuesday, 28 July 2020

CRIF: First increase in bankruptcies in six years

Prague Daily Monitor |
8 January 2020

The Czech Credit Bureau (CRIF) yesterday released to CTK information showing the first increase in bankruptcies in the Czech Republic in six years. Bankrupt company entities increased by 22 from 2018 to 680 in 2019, a slight increase. The large increase came from bankrupt people involved in business. There were 7940 in 2019, a 2440 person increase from 2018.

Bankruptcy proposals were also increased in 2019. For individual entrepreneurs, the figure surged from 5924 in 2018 to 8746 in 2019. For business entities, the proposals for bankruptcy increased by 15 to 1088 in 2019.

An analyst for CRIF Vera Kamenickova explained the changes. The main reason for the increase in bankruptcies is a change in the insolvency regime that came into effect in July 2019. This change was responsible for about a doubling in the amount of bankruptcies in every month after it went into effect. Even with the increases, the totals are still much lower than during the 2008 to 2017 time period.