Coface: Insolvency situation in the region has deteriorated

After declining in 2020, the number of corporate insolvencies increased in 2021 in Central and Eastern Europe (CEE), almost reaching pre-epidemic levels in most countries, according to a recent analysis by credit insurer Coface. The number of insolvency proceedings increased in seven countries in the region – in addition to Hungary – in the Czech Republic, Lithuania, Poland, Romania and Slovakia – and in five countries – Croatia, Estonia, Latvia, Serbia and Slovenia. According to credit insurance experts, the number of corporate insolvencies in Central and Eastern Europe is expected to increase in the coming quarters due to the phasing out of support measures during the pandemic and the consequences of the Russia-Ukraine war.