Bankruptcies rising sharply; lack of detailed statistics hinders analysis

The number of companies declaring bankruptcy rose dramatically in 2000, reaching 4,400, or 41% more than in 1999. By comparison, between 1995 and 1998 the number of firms going bust did not exceed an average of 3,000 a year. According to specialists, the hike is a result of an economic slowdown which, together with shrinking demand, the soaring price of capital, and high taxes, are pushing many smaller family businesses out of the market. Others say that although the situation is not yet dramatic, there are reasons to be concerned about the negative trend. Complete data with the ratio of firms entering the market and leaving it, as well as detailed information about the size companies going bankrupt, does not yet exist, which makes the whole picture unclear. According to the Central Statistical Office (GUS), last year the number of newly registere