The surprising bankruptcy figures for August

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August saw 33% fewer bankruptcies than in the same month last year.

There were 184 bankruptcies in August, compared to 274 in August 2019. A total of 2,282 bankruptcies were recorded between January and August this year, representing a decrease of 8% compared to the 2,488 bankruptcies in the same period last year.

“Despite these figures, I remain convinced that there will be a landslide, and I fear that we are only pushing the problems forward,” says Per Fjærestad, CEO of Creditsafe Norway in a press release.

He believes that the general state of the Norwegian economy may be a decisive factor.

“In general, the Norwegian economy has a dampening effect, and the business sector is therefore more reserved and cautious. We trade less, invest less and give less credit.

Fjærestad believes that the bankruptcy figures are abnormally low, considering that so many companies have had such small activity during the entire pandemic.

“Support schemes and VAT exemptions may have done a lot of damage, but reality will soon kick in. Obviously, there will be problems, they have just been postponed longer than we had anticipated,” he said.

Of the country’s 11 counties, nine experienced a decline in the number of bankruptcies in August, while Troms and Finnmark were on the scene.

Only Agder saw an increase in the number of bankruptcies. In return, bankruptcies in this county spiked by 60 percent; 24 bankruptcies compared to 15 in August last year.

© NTB Scanpix / #Norway Today

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1 Comment on "The surprising bankruptcy figures for August"

  1. Joseph Heffernan | 4. September 2020 at 08:10 | Reply

    Off course when namsman lose people’s paperwork work
    And denies they have ever received them
    Even though you have prove. Then makes you make new application. And says you have to wait 15 months.
    As they cannot handle the work

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