In 2024, 686 corporate bankruptcies were declared in the Czech Republic, marking a 5% year-on-year increase with 35 more cases than in 2023. Additionally, 1,082 bankruptcy petitions were filed, 27 more than the previous year, according to an analysis by CRIF - Czech Credit Bureau. December recorded the lowest monthly figures for the year, with 48 bankruptcies and 75 insolvency petitions. The total number of bankruptcies in 2024 matched the 2022 level but remained below the 730 recorded in 2021. “Despite the rise in numbers, the rate of corporate bankruptcies relative to active companies remained stable at 16 per 10,000,” said CRIF analyst Věra Kameníčková. She also noted that corporate credit morale improved, with a lower share of non-performing loans, while corporate loans grew by 8% year-on-year, outpacing the 5% growth in deposits. Prague reported the highest number of bankruptcies in 2024 (318 cases), followed by the South Moravian Region (100) and Moravian-Silesian Region (55). While bankruptcies in the Moravian-Silesian Region fell by 26% compared to 2023, the South Moravian Region saw a 25% increase. The Central Bohemia Region had the highest rate of bankruptcies relative to active companies, with 25 bankruptcies per 10,000 entities, a 29% year-on-year increase. In contrast, the Vysočina Region recorded just six bankruptcies per 10,000 companies, reflecting a 25% decline. The Ústí and Pardubice regions also reported low bankruptcy rates. The trade sector led with the highest number of bankruptcies (151 cases), followed by manufacturing (108) and real estate (79). The highest bankruptcy rates per 10,000 entities were seen in transport and storage (23) and manufacturing (18). Sectors such as education, healthcare, and social assistance had the lowest rates (3), alongside information and communication activities (5), where bankruptcies decreased by 20% year-on-year. Administrative and support services experienced a significant 74% rise in bankruptcies, driven by challenges in industries like leasing, employment agencies, and travel agencies. The data highlights both stability in overall bankruptcy rates and areas of vulnerability across specific regions and sectors. As corporate loans and credit continue to grow, monitoring economic conditions and supporting sectors facing heightened risks will be critical for maintaining business stability in 2025. Source: CRIF and CTK