Euler Hermes: 73 bankruptcies in November

In November, 73 Polish companies were declared bankrupt, the same as last year, according to a report issued by Euler Hermes. Since the beginning of the year, 826 companies were declared bankrupt, a 13 percent growth y/y. According to Euler Hermes the number of bankruptcies will remain at this level until the end of the year. It should, however, drop next year due to the so-called “statistical base” (higher base this year), and investments growth. “SMEs are having the biggest problem staying afloat, regardless of whether they are production, construction or service companies. An interesting case is the one of manufacturing companies, whose number of insolvencies has been increasing recently, despite the simultaneous increase in orders and export sales as well as the increase in capacity utilization. The explanation is self-inflicted - companies supplying the domestic market are insolvent, not deriving additional export benefits, and losing the local market,” the report said.