BERLIN (dpa) – The number of corporate bankruptcies in Germany will grow in 2015 for the first time in five years due to a fall in people meeting their debt payments in the country, the credit insurance group Euler Hermes told dpa on Wednesday.
Bankruptcies in Europe’s biggest economy are likely to climb by two per cent next year to nearly 25,000 because of weaker debt payment habits, Euler Hermes Chief Economist Ludovic Subran said.
This is despite the global trend towrads lower bankruptcies. German bankruptcies are expected to have dropped by 6 per cent this year. But figures drawn up by the German debt collection and credit group Creditreform show the number of days that debts were in arrears grew to 13.25 in the third quarter this year compared with 12.84 days in the same period last year.
Subran was, however, confident that the expected rise in bankruptcies in 2015 represented only a “short-term dip” in the general trend towards lower bankruptcies with the numbers stablising in the coming years.
The forecast rise in in German bankruptices also goes against the global trend. Euler Hermes expects a worldwide fall in bankruptcies of three per cent in 2015, including a drop in nations that have been at the centre of the euro debt crisis such as Spain, Italy, Portugal and Greece.
In addition to Germany, Euler Hermes predicts an increase in bankruptcies next year in Luxembourg, Austria, Finland, Belgium and China.