Estonia, Financial Services, Legislation, Markets and Companies

Krediidiinfo said that last year, unlike in previous years, companies went bankrupt that were better capitalized, held large inventories, and in the last year of operations invested in property and equipment. In the year preceding the bankruptcy, only marginal changes in the fall of net sales and emergence of losses took place. The share of companies with long-term tax debt fell to 50% from 75% among bankrupt companies.

The share of abatements, i.e. companies entirely without assets, accounted for 64.5% of bankruptcies last year (in 2013 the corresponding figure was 67%).

The number of bankruptcies has been in a downward trend over the past five years. On average, 2.2 companies per one thousand companies went bankrupt last year, i.e. every 455th company (a year earlier it was every 390th; in 2012, every 331st).

The spheres with the largest number of bankruptcies are for several years accommodation/ catering and industry, where 6.30 and 4.54 bankruptcies per one thousand companies took place respectively.

The average bankrupt company has five employees, sales revenue of up to 0.2 million euros and minimum equity capital. Every other company has increasing or constant tax debt in the last year.