Government support measures continue to work against business failures.
According to the Banque de France, defaults posted a drop of 40.1% over one year in January.
A total of 29,899 companies were concerned against 49,934 in January 2020.
Read also: Corporate bankruptcies: simplifying legal proceedings would limit the coming hecatomb
As in its previous communication on the subject, the Banque de France specifies that "
this decrease does not indicate a reduction in the number of companies in difficulty
".
It is the result of a combination of measures introduced since last year by the executive and maintained at the start of the year to avoid the cascade of bankruptcies.
These are primarily regulatory measures that "
temporarily changed the dates for characterization and declaration of the state of suspension of payments
", explains the Banque de France.
Then, secondly, all the cash aid or mechanisms that allow companies to reduce or delay the payment of certain charges, "
and therefore the risk of defaulting on these payments,
" she adds.
Among them, the solidarity fund, recourse to partial activity, exemptions and deferrals of social charges, moratoriums for bank debts and rents or even loans guaranteed by the State.
The "whatever the cost" continues
The fall in the number of insolvencies in January can again be observed in all sectors and for most categories of business.
The most marked declines compared to January 2020 concern construction (-46%), transport and storage (-44.8%) and industry (-40.4%).
Read also: Business failures fell by 39% in 2020
According to still provisional data, this decline should be confirmed again in February.
The Banque de France anticipates a decline in the number of insolvencies of 43.2% over one year to 27,946 companies.
While the epidemic persists in France, the Minister of the Economy, Bruno Le Maire, promises to maintain his policy of “total” support for the economy.
The Ministry of Labor has just announced the maintenance until the end of April of the current conditions of partial unemployment compensation.