Sharpest decline in bankruptcies since 2006

14/08/2008 15:00

In the first six months of 2008, the number of bankruptcies declined by well over a fifth relative to the same period in 2007. It is the most substantial decline since early 2006, when decline set in.

Number of bankruptcies

Number of bankruptcies

Robust decline among private persons and one-man businesses

In the first six months of this year, 3.2 thousand businesses, institutions and private persons were declared bankrupt by Dutch courts, more than 22 percent down on the same period last year. This substantial decline is mainly due to a decline in the number of personal and one-man business bankruptcies. In this category, the number of bankruptcies diminished by 36 percent relative to the first six months of 2007.

One of the main causes for the decline is the amendment on the Act on Debt Restructuring Natural Persons (WSNP) effective since 1 January 2008. The favourable economic situation also plays a part in this respect.

Company bankruptcies reach lowest level since 2001

In the first half of this year, 1.7 thousand businesses and institutions went bankrupt, almost 5 percent fewer than in the same period last year. The number of company bankruptcies has not been this low since the second half of 2001. This is also due to the thriving economy.

The drop in the number of bankruptcies was most obvious in manufacturing industry and the sector hotels and restaurants. In the sectors agriculture and fisheries, transport, storage and communication, education and care, on the other hand, more bankruptcies were recorded.

Companies and institutions going bankrupt in the first six months of 2008

Companies and institutions going bankrupt in the first six months of 2008

Dick Boer and Vinodh Lalta