Number of insolvent companies growing

The insolvency index was up by 10 percent in the first nine months of 2008, compared to the same period in 2007. Insolvency is highest in the construction, wholesale and retail sectors. The crisis is expected to reach its peak in 2009. According to a recent analysis by Coface Hungary, the number of insolvency procedures was up by 11 percent in the first three quarters. The number of liquidations was up by 11.67 percent, while final settlements were up by 10 percent. The number of real bankruptcy procedures intended to restore liquidity was only 12. Final settlements which eventually turn into liquidation are frequent. Wholesale and retail enterprises accounted for 26 percent of total insolvency procedures, while the construction industry accounted for 17 percent.