The number of insolvent companies in Poland will increase by 12% in 2022

by   CIJ News iDesk III
2022-05-18   11:42
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The number of insolvent companies in Poland will increase by 12% this year. to 2,450 companies, Allianz Trade forecasts. Allianz expects this number to increase to 2,650 next year, i.e. by 8.2% y / y.

We expect that this year there will be a further, and still significant, 12% y / y increase in the number of insolvencies of Polish companies - perhaps not by nearly 70% y / y as in 2021 (precisely because of the high base), but in spite of good macroeconomic results in Q1 (8.5% y / y GDP growth) - because insolvencies are more and more frequent not due to demand, but mainly costs and supply reasons: mainly due to more expensive energy and raw materials and the lack of components and labor (also due to the war in Ukraine - the departure of Ukrainian workers)," said Sławomir Bąk, member of the management board of Allianz Trade for risk assessment.

Allianz Trade predicts that in 2022 the number of insolvent companies in the world will increase by + 10%, and in 2023 by another + 14%, thus reaching the pre-pandemic level, it also said.

Bąk reminded that in Poland the reorganization proceedings were made more informal and simplified, which remained a permanent part of the Polish reorganization law.

"The first quarter of 2022 has shown that it is still very useful - after a temporary decrease in the number of insolvencies related to the aforementioned change of law, their number increases significantly again. 2/3 of these procedures are restructuring procedures, mainly in a new simplified form, and they are mainly carried out SME family businesses. The ability to quickly react to changes in the economic situation on the market allows us to observe current trends - including problems of construction companies (+ 38% y / y insolvency in Q1), whose profitability has been undermined by significant increases in the prices of building materials by several dozen percent," summarized the board member .