Bankruptcy filings set to Rise in 2021
Premal Trivedi
Qualified Independent Director (IICA/MCA) | Ex-TATA | Fellow CA (ICAI) | DISA (ICAI) | CS Finalist (ICSI) I Risk & Corporate Governance Advisor I Open to Board, AC and Risk Management Committee Positions
Bankruptcies have fallen sharply in OECD economies because of the array of COVID-related support available to businesses, as well as imposed moratoria on bankruptcy filings.
Data for 2020 are available on bankruptcy filings in 25 OECD economies. In the US, these fell by 16% relative to last year. The other major economies show the same pattern of decline. In Japan and Germany the falls are 7% and 13%, respectively; in Canada and the UK, bankruptcies fell by around a quarter (Figure 2). The largest decline is in Australia and France (40%), while Poland is the only country that shows no change relative to 2019.
https://voxeu.org/article/covid-rages-bankruptcy-cases-fall?campaign_id=4&emc=edit_dk_20210205&instance_id=26796&nl=dealbook®i_id=77986062&segment_id=51061&te=1&user_id=597595cb5fb939451a99639eb7c60316
CTPO at Physics Wallah | Ex CTO Viacom18 Digital Ventures | Ex Head Dish Network Inc, India | Nasscom DTC Mentor | Mentor & Advisor
4 年That’s interesting but it is going to pose additional burden on financial institutions who are going to support these companies who got badly impacted due to Covid