The number of businesses which have been declared bankrupt hikes by 40% in a year.
It appears that a wave of bankruptcies has hit Bulgaria at the end of 2011. The number of bankrupt companies is expected to increase by the staggering 40% year-on-year by Christmas.
This negative tendency owes itself in part to the widening financial and economic crisis in Europe, and in part to some delayed court rulings regarding bankruptcy cases.
This became clear from a statement of Mr. Georgi Lilyanov, CEO of Coface Bulgaria. The largest number of bankruptcies has been registered in the sectors of construction, transport, commerce and agriculture, mostly among SMES which have been forced out of business by increasing production costs and falling profit.
Market analysts expect a boom of mergers in Bulgaria in 2012, which will lead to strong market consolidation among the largest companies in the country./Source: Standart Daily/