Corporate insolvencies in France slightly accelerated their annual growth in June, the Banque de France reported on Friday. In the 12-month period ending at the end of June, 33,155 companies were declared insolvent, or 14.6% more than in the same period ending in June 2021.
This increase, which is slightly more noticeable than the 10% registered in May, remains 35.2% lower than before the health crisis. These developments, however, should.interpret with caution because the number of failures was particularly low there “, warns the Bank of France.
The slowdown in commercial courts and the temporary suspension of litigation have actually caused the number of registered failures to drop to around 27,000 in 2021, down from more than 50,000 a year before the health crisis. State aid paid to ease the cash flow of companies during the pandemic has also enabled a number of companies to avoid suspension of payments.
In June alone, the number of new failures is “Slightly above 3,000 as the year-to-date total “, the institution notes. In the period from July 2021 to June 2022, the increase in the number of bankruptcies is caused especially by small businesses (+25.7%) and very small businesses (+33.5%).
On the other hand, the insolvency of large and medium-sized companies decreased by 47.5% within a year.
The worst affected were transport-warehousing (+27.9%), manufacturing (+23.4%) and motor vehicle trade/repair (+18.5%), while real estate activities (-11.4%) and agriculture/forestry/fisheries (- 6.1%) . %) were saved more.
Source: Le Figaro
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