Sharp rise in bankruptcies in the Netherlands this year, credit insurer predicts

The number of bankruptcies of companies in the Netherlands will increase significantly this year. This is what credit insurer Atradius predicts in a new report. The researchers expect an increase in the number of bankruptcies by 38 percent. Last year, there was an increase of 48 percent.

This should bring the number of bankruptcies in the Netherlands to 4,500 this year. Atradius points to the loss of coronavirus support, the higher interest rates and the weakening economy. In 2020 and 2021, the government's coronavirus support measures for companies led to a sharp drop in bankruptcies.

"Since the government measures stopped in the first quarter of 2022, we have seen an increase in the number of bankruptcies. In 2023, as a whole, the counter in the Netherlands stood at 3,271 bankruptcies. Especially in the second half of that year, the numbers rose sharply and to an average of 300 bankruptcies per month. In the report, this trend continued in January and February of 2024," said John Lorié, chief economist of Atradius.

Atradius notes that the number of bankruptcies has not yet returned to pre-coronavirus pandemic levels. A normalization is expected before 2025, and there should be a slight increase of 3 percent in the number of companies forced to close their doors.

Worldwide, Atradius expects a 16 percent increase in bankruptcies this year. The Netherlands is one of the countries with the strongest increase. Other countries where a significant increase is expected are Italy (plus 63 percent), Singapore (plus 47 percent), Portugal (plus 34 percent), Poland (plus 29 percent) and the United States (plus 29 percent), according to the researchers.