The Czech Republic witnessed a significant decline in business bankruptcies last year, hitting a ten-year low record. According to data analysis by the CRIF – Czech Credit Bureau, the number of declared bankruptcies was 4,943, representing a year-on-year decrease of four percent.
Last year, 5343 insolvency petitions were filed, half a percent less than the previous year. There were 286 business bankruptcies in December alone, the lowest number since December 2012. There were also 352 bankruptcy petitions filed, the weakest for last year.
“December is usually when fewer bankruptcies are announced than during the year. However, this December brought the lowest numbers in the last 11 years,” commented CRIF analyst Věra Kameníčková.
The last year was characterized by a large number of abolished trade licenses. However, they were predominantly canceled by those who no longer actively used them, mainly due to the obligation to have a data box. “The sharp increase in the number of extinct businesses last year is primarily for administrative reasons and is also evidenced by the low number of bankruptcies, the substantial predominance of their bank deposits over loans, and perfect payment morality when repaying loans,” she added.
In terms of region, the Moravian-Silesian region had the highest number of business bankruptcies last year, with 645. This was followed by Prague with 594 and the Ústí region with 534 bankruptcies. The number of bankruptcies decreased in most areas. The most significant year-on-year drop in bankruptcy was recorded in the Central Bohemian region, with a decrease of 13 percent, followed by the Pardubice and Hradec Králové regions, with a 12 percent reduction.