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Last Updated:[06-08-2009 09:09:59 EDT] Zoom in Zoom out Back to Tradenews

Spain Continues to Be Haunted by Bankruptcy Bogey

tradenews The Spanish companies and individuals filing bankruptcy or insolvency suits in the first two quarters of 2009 had already overtaken the total number of declarations of the previous year, reported the Spanish National Institute of Statistics. A total of 3,285 companies and individuals have declared insolvent in the first half of 2009 from its previous high of 2,902 in last year.

The report showed that the number of bankruptcies had increased from the January – March quarter figures of 1558 to 1727 in April - June quarter. It should be recalled, the total number of petitions received for 2007 was just 976, and with the economy getting no better, rest of the two quarters are expected to deliver the same figures of previous quarters.

Small and medium sized companies have been largely impacted by the ongoing economic crisis as 6 out of 10 companies that declared themselves bankrupt come under a yearly turnover of less than $2.9mn. Similarly, the data showed the self-employed too had succumbed to global economic development. The numbers of individuals who have declared their inability to pay back their debts have risen by 192 percent whereas the families that approached with such requests rose by about 151 percent.

The unemployment has come down in Spain during the past three months particularly due to many temporary jobs provided by the tourist season. But the imminent end to the season is feared to put pressure on the Spanish economy once again.

In another study, D&B Deutschland GmbH had earlier reported that Europe and the US would experience a wave of bankruptcy filings in the second half of this year by both individuals and companies. According to the release, the US would be the worst hit with a rise in bankruptcies by around 60 percent followed by Spain with 43 percent, the UK at 35 percent, France with 28 percent and Germany at 17 percent.

By Jose Roy

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