Contact:
Newsfox Desk
Phone: + 43 - 1 - 811 40 - 319
E-Mail: editor@newsfox.com
| Pressbox | 
|
Magdeburg (pte045/07.05.2003/15:45) - Germany has seen a record number of bankruptcies for the fourth year in a row, with 2003 proving no exception to the trend.
As reported today, Wednesday, by the German Encashment Company Association (BDIU) http://www.inkasso.de , over 40,000 companies will go bankrupt this year. At the same time, the association expects 58,000 insolvencies among individuals. According to the BDIU, East German companies are especially at risk, with those located in Sachsen-Anhalt carrying a three times higher risk of bankruptcy than in Hessen or Bavaria.
"In addition to the weak economy, worsening payment behaviour and high private debts are behind the recent record number of bankruptcies," said BDIU president Dieter Plambeck. A spring survey conducted by the association confirms this assessment: 59 per cent of BDIU member firms have observed worsening payment behaviour among private debtors and 63 per cent have observed a general lapse in preparedness to pay.
About 650,000 jobs are at risk due to the impending bankruptcies. "The total economic damage resulting from insolvency is estimated at over 50bn euros," said Plambeck. The BDIU has restated its demand for a broad social alliance against excessive debt.
(end)
|
|
