Expert believes a bankruptcy wave could hit Norway in 2021

Corona closedPhoto: Stian Lysberg Solum / NTB

There are still fewer bankruptcies and foreclosures than last year, but the difference is flattening out. The expert expects the bankruptcy wave to hit Norway in 2021.

“That may be a sign that the expected wave of bankruptcies, resulting from the corona crisis, will soon be on its way,” bankruptcy expert Per Einar Ruud in Bisnod said.

In November, 407 companies went bankrupt, and 42 companies were forcibly closed. That’s a total decrease of 7.6% compared with November last year, while so far this year, there has been a total decrease of bankruptcies and compulsory liquidations of 13.3% compared with last year.

“Flattening out”

“Although it seems that there will be surprisingly few bankruptcies in 2020 despite the crisis, we now see that the difference is about to flatten out,” he added.

He pointed out that many companies have used up their reserves. 

Ruud also believes that the true effect of the corona crisis will become evident in 2021.

Troms and Finnmark are the only counties that have experienced an increase in the number of bankruptcies and forced liquidations so far this year compared with last year.

© NTB Scanpix / #Norway Today

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