Banks expect the number of bankruptcies to ‘normalize’

Photo: ANP

Major Dutch banks such as ABN AMRO and Rabobank expect the number of bankruptcies to normalize this year. Last year the number of bankruptcies was still historically low. This is mainly due to the government’s corona support measures.

Last year, the number of bankruptcies fell by more than 40 percent compared to the previous year, the Chamber of Commerce (KVK) announced at the end of January. The Chamber of Commerce does not analyze the figures itself and does not make any predictions for the future.

Now that the corona measures and the support measures are gradually being phased out, the banks expect the number of bankruptcies to increase. At ABN AMRO, the special management department is not yet overcrowded. Rabobank sees a limited increase in the number of customers for the department that assists entrepreneurs who are experiencing financial problems. “If the government reduces the support measures carefully and appropriately, we do not expect a storm surge,” said a spokesperson for that bank.

Credit insurer Atradius thinks that the number of bankruptcies will increase from the second quarter of this year. “We think the total this year will be around the 2020 level, but will be slightly lower than in 2019,” says economist Theo Smid of Atradius. That would almost double the number of bankruptcies compared to last year. The credit insurer expects that sectors that had a hard time during the corona crisis, such as the catering industry and the cultural sector, will be relatively hardest hit.

Banks expect the number of bankruptcies to ‘normalize’
Source link Banks expect the number of bankruptcies to ‘normalize’

Back to top button