Number of corporate bankruptcies in Bulgaria down by 35.6 pct in 2016

Source: Xinhua| 2017-09-14 21:15:08|Editor: Zhou Xin
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SOFIA, Sept. 14 (Xinhua) -- The number of Bulgarian companies that went bankrupt in 2016 decreased by 35.6 percent year-on-year, a survey conducted by the global credit insurance company Coface showed here on Thursday.

In absolute terms, the number of companies amounted to 381, or 0.1 percent of the active companies in Bulgaria, the survey showed.

This impressive result was due to such factors as improving the country's macroeconomic performance, gross domestic product growth for two consecutive years, declining unemployment, and an increase in exports, Milena Videnova, Country Manager of Coface in Bulgaria told a press conference while presenting the survey.

The list of worst performers, in terms of bankruptcies, was dominated by retail trade, real estate and wholesale trade companies, the survey showed.

Meanwhile, there were no bankruptcies in five sectors, including information technology, pharmaceuticals, machinery and equipment manufacturing, education and forestry.

However, the number of companies at high risk of insolvency increased by 23.5 percent to 64,000, the survey indicated.

It was a warning sign, Videnova said.

These companies have not started a bankruptcy procedure but actually had very poor finances and did not pay on time, she added.