Euler Hermes: 67 bankruptcies in April

In April, 67 Polish companies were declared bankrupt, compared to 66 last year, according to a report issued by Euler Hermes. Since the beginning of the year, 291 companies were declared bankrupt, a 22 percent growth y/y. According to Euler Hermes most bankruptcies are caused by low profitability of many companies. In many cases the profit margins are at 1-1.5 percent of turnover, which is not enough to secure any extra capital needed in periods when there is low activity or in case when contractors have trouble paying on time.