German insolvency numbers set to worsen

The number of German companies going bankrupt dropped in the first quarter of 2012, but analysts expect the situation to worsen because of the eurozone crisis.

German news service Deutsche Welle reports that the latest figures otherwise point to a drop in bankruptcies in the first quarter of the year, as part of a year-on-year comparison published by Destatis, the National Statistics Office.

The number of company insolvencies dropped by 0.6% to a total of 7,483. The number of household insolvencies also dropped, by 2.8% to 25,462.

However, the outstanding claims of creditors jumped to €10bn from €7bn in the same period last year, spurred on by bankruptcies involving several large German solar energy companies.

And the outlook is bleak, Deustche Welle reports. It cited Christoph Niering head of the German Insolvency Administrators’ Association (VID) telling Reuters that: “We expect a lot more companies filing for bankruptcy.”

“There are more and more signs that the German economy is no longer able to decouple itself from the slump in the other eurozone nations.”

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