Coface: The number of insolvency proceedings in Hungary has increased

By: Trademagazin Date: 2023. 04. 05. 08:22

Almost twice as many liquidation proceedings were initiated against Hungarian-based companies in 2022 than a year earlier, according to an analysis by Coface, one of the world’s largest credit insurers. The construction industry continues to be the riskiest sector, while agriculture is the most stable.

Last year’s economic situation, which became more uncertain, is well reflected in the financing situation of the business sector. A total of 8,111 liquidation proceedings were initiated in Hungary in 2022, which is almost double the 4,359 proceedings in 2021, Coface, one of the world’s leading credit insurers, announced. The numbers show a different time distribution. Nearly sixty percent of all proceedings initiated in 2022 began in the last third of the year. In the first eight months of the year, an average of 403 procedures were initiated per month, while the number of liquidations more than doubled from September.

“Thus, one of the big questions of this year will be whether this trend will last and when the usual 400-450 monthly procedures in previous years can return. The other important question is how well the establishment of new businesses can compensate for the liquidations”

– said Henrietta Kiss, Coface Hungary analyst.