The number of bankruptcies is expected to jump 10% in 2022 in Belgium
The support measures have helped stem bankruptcies so far, but they depend from 2022 at a moderate pace.
Thanks to the massive support of States, bankruptcies have declined everywhere in 2020 and will continue to be the case in 2021, before rising again in 2022. According to Euler Hermes, one of the major players in reinsurance, the number of bankruptcies should increase by 15% worldwide next year.
In Belgium, thanks to the support measures, the increase should be limited to 10% (8,150 bankruptcies), but without returning to the high level of 2019 (more than 10,000 bankruptcies), before the crisis. For 2021, Euler Hermes expects a slight increase of 3% compared to 2020, with 7,400 bankruptcies.
“Massive state interventions have made it possible to avoid one in two bankruptcies in Western Europe and one in three in the United States“, considers Maxime Lemerle, manager at Euler Hermes.
Euler Hermes also points to a risk of increased bankruptcies related to zombie companies, who were able to artificially survive thanks to the moratoria and support measures.