Spain expects 10'000 Bankruptcies in 2013

 

Data from Spain's National Institute of Statistics published on Friday revealed how the country is expected to see almost 10'000 small businesses go into bankruptcy by the end of 2013.

This marks a increase of more than 10% on 2012, and a nine-fold increase on the number of bankruptcies recorded in 2007 – for the economic crisis struck – with 1,147.

The number of small Spanish businesses that have disappeared during the last 5 years is estimated to be more than 500,000.

Larger entities are not immune to financial difficulties either. Earlier this year Property Developer Reyal Urbis filed for bankruptcy with €3.6 bln of debt, followed by Frozn fish company, Pescanova, Electrical appliance manufacturer, Fagor, and Bakers, Panrico.

However, according to research bankruptcy only account for around 25% of the reason for small businesses choosing to close their doors, with many simply choosing to settle their affairs themselves without having to go to court.

The INE report concludes that 2014 is expected to see an improvement.

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