Business Insolvencies Increased 13% In December

The data points to a growth in bankruptcies in the coming months.

The forecast of bankruptcy proceedings and company dissolutions seem to be confirmed. Business insolvenciesthey increased 13% year-on-year in December despite higher consumption during that month. Measures to contain business closures have had limited effects.

A study released this Monday by Iberiform detects that the measures applied both in Spain and in other European countries to reduce the expected increase in bankruptcy declarations, modifying the filing thresholds, reducing the debtor’s ability to force bankruptcy or providing Sufficient financial support to delay your submission has not been enough.

While in the year as a whole insolvency proceedings fell by 1.4%, the December data anticipates the expected increase in bad debts in the coming months.

Catalunya was the autonomous community with the most tenders presented in December, 24% of the total, followed by Madrid (another 22%). They are followed by the Valencian Community (15%) and Andalusia (9%). By sectors, the insolvencies of companies dedicated to Services (50% of the total) predominate, followed by Construction companies (20%) and Industry (15%).

The month of December also showed an increase in company dissolutions in Spain, which experienced a year-on-year growth compared to the same month of the previous year of 9.6%, and a softer increase, of 3.3%, in the creation of new companies. According to Iberinform’s analysis, in December 2020 a total of 4,251 dissolutions and 7,922 constitutions were registered.

For the year as a whole, due to the lack of activity in the Spanish economy during several months of the first semester, dissolutions show a 9.5% decrease. Madrid (26% of all cases) and Catalonia (another 21%) are the Autonomous Communities where the most dissolutions are declared.

They are followed by Andalusia (11%) and the Valencian Community (11%). By sectors, dissolutions of companies dedicated to Services (44% of the total) predominate, followed by Construction companies (21%) and Industry (8%).