Bankruptcy of companies in the crisis

Since the beginning of the crisis the failure of companies in Bulgaria has raised with 80%, and the number of companies in insolvency has raised double. This is the data of the Registration agency. In 2008 in which end the crisis appeared for first time the companies in bankruptcy were 239, but in the last year the companies erased from the registry because of impossibility to cover their payments were 428.

The Registration agency statistics show that most affected by the crisis are the building companies, companies from the food sector and tourist agencies. The main reason of bankruptcies of tourist agencies is the practice of the big clients and the state administration to pay their plain tickets with a big delay, sometimes 45 days after the flight. Along with this the tourist agencies must cover their debts to the air flight companies twice monthly, otherwise they loose their license, which means bankruptcy.

In the building sector the bankruptcies are due to the following reason: the building companies that started projects in 2008 received huge credits by the banks and became dependent by them. After that they were forced to sign impossible contracts for interest of the credit of 12- 13 % in time when they earned profits only 3 – 4 %. In the end of the last year 1200 building companies were erased from the registry.

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