Bankruptcy in Hungary

In the first eight months of 2008, 7,406 businesses in Hungary went bankrupt, according to a report released by French credit insurance company, Euler Hermes. According to the firm's analysts, the total figure for 2008 will amount to 11,700, up 20 percent y/y.

The majority of these bankruptcies have occurred in the retail, construction and wholesale sectors. Businesses from transport, tourism and agriculture sectors are also at strong risk of bankruptcy and the grocery retail sector remains one to watch for potential liquidations, according to the report.

Meanwhile, the situation in Poland doesn't look as bleak in comparison. The report states that around 400 Polish firms will fold in 2008.

"As in 2006 and the year after, Polish firms have found themselves in the opposite situation [to Hungarian firms]. This shows an annual drop in the number of bankruptcies of around 20-30 percent," Tomasz Starus, director of the company's risk assessment department, said in the report.