EU nation hit by wave of bankruptcies

Lazy eyes listen


According to the NL Times portal, which published statistics from Faillissements Dossier on Sunday, the number of bankruptcies in the Netherlands has more than doubled in the first quarter of 2022.

The survey states that cafes, restaurants, retail stores, and internet retailers have been the most negatively impacted companies.

Between January and March, the country reportedly saw 781 businesses and institutions file for bankruptcy, up from 506 the previous year. According to the report, the number of closed cafés and restaurants nearly tripled to 54.

According to the survey, a steep rise in energy prices and high levels of inflation are to blame for the rising number of insolvencies in the fifth-largest economy in the Eurozone.

Consumer energy prices will now be measured differently, according to the Statistics Netherlands agency (CBS), which will enhance estimates of inflation. The real costs for consumers will be determined using transaction data from energy suppliers, according to CBS.

Prior predictions made by credit insurer Atradius indicated that more than 4,000 Dutch businesses could fail in 2023 as a result of high energy prices, rising interest rates, and high salary demands.