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Corona consequences: Will the big bankruptcy wave come in October? Scholz sees "the worst behind us"

2020-09-06T07:39:18.693Z


Due to the effects of the coronavirus, numerous German companies unexpectedly got into economic difficulties. Experts fear a wave of bankruptcies.


Due to the effects of the coronavirus, numerous German companies unexpectedly got into economic difficulties.

Experts fear a wave of bankruptcies.

  • With the outbreak of the

    coronavirus

    , many

    companies

    suddenly had to struggle with problems.

  • The

    bankruptcy

    threatened, but

    measures of the Federal Government

    prevented a

    wave of bankruptcies

    .

  • But with a delay, this could

    hit

    the

    German economy

    massively.

Berlin - The

corona crisis

has put many

companies

in a

situation

that

threatened their

very

existence

.

Nevertheless, the number of

bankruptcy registrations

in Germany is

currently falling

.

According to the

Federal Statistical Office

, the numbers of bankruptcies are below the values ​​of the previous year.

In April of this year there were 13.3 percent fewer

corporate insolvencies

than in the same month of 2019. Almost ten percent fewer companies went bankrupt in May than a year earlier, and according to preliminary calculations, the decline was even more pronounced in June at almost 30 percent.

Corona: Obligation to file for insolvency suspended for companies - but the bankruptcy wave threatens

But appearances are deceptive.

In many places, the

suspension of the

obligation to

file for insolvency

saved

ailing businesses from collapse.

For example, companies in this country do not currently have to report their over-indebtedness or insolvency to the court if these were caused by the

corona pandemic

*

and its effects on the German economy.

With this measure, the Federal Ministry of Justice hopes to have a suspensive effect, which should give the affected companies some air.

With government support, remedial efforts are to be promoted.

Even if the relevant law is currently limited to the end of September, an extension of the regulation is imminent.

The federal government recently decided to extend this to December 31 - but only for over-indebted, but not insolvent companies.

"The #Corona pandemic has not yet been overcome," said BM Lambrecht.

"The uncertainty is causing problems for many companies. That is why we decided today in the cabinet to extend the suspension of the obligation to file for insolvency to a limited extent." Https://t.co/rJ1dqcBsdk

- Federal Ministry of Justice and Consumer Protection (@BMJV_Bund) September 2, 2020

Economic experts: 90 percent of insolvent companies face bankruptcy proceedings

This

threatens a

wave of bankruptcies of

unimaginable proportions

from October

.

According to estimates by the credit reporting agency Creditreform, this drives around

90 percent

of German companies that are

insolvent

into

insolvency proceedings

.

“The previous trend will reverse in the fourth quarter.

From then on, a significant increase in insolvency cases can be assumed, ”said Creditreform Managing Director Volker Ulbricht in front of the Düsseldorf Economic Journalistic Association (WPV), describing his fears.

Ulbricht believes that the bankruptcy wave will

predominantly

affect

small and medium-sized companies

.

As far as the industries are concerned, Creditreform believes that companies from the

entertainment sector

as well as

travel agencies

and

hotels are

facing the end.

Finance Minister Olaf Scholz reassures: "We have the worst behind us"

In contrast,

Finance Minister Olaf Scholz

sees

light at the end of the tunnel.

The

SPD

politician is of the opinion that the German economy will soon have overcome the slump caused by the Corona crisis.

"At the moment there is a lot of evidence that the worst is behind us and that the economy is gradually improving,"

the

SPD

*

candidate for chancellor

predicted

to the "Neue Osnabrücker Zeitung".

According to Scholz, the measures to stabilize and stimulate the economy are taking effect and are having a better effect than initially hoped.

It is true that Germany is far from over the mountain and has not yet defeated the virus.

But the Vice Chancellor is optimistic “that by the end of next year, at the beginning of 2022, we will return to the level we had before the crisis”.

(kh) * Merkur.de is part of the nationwide Ippen-Digital editorial network

Video: Corona crisis causes Europe's economy to shrink further

Source: merkur

All news articles on 2020-09-06

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