In the first quarter of 2009, the number of companies declared bankrupt in Poland has increased by some 11 percent in comparison with the same period of time last year.

A study by leading credit insurance company Euler Hermes reveals that as many as 105 companies have gone bankrupt in the first quarter.

According to experts, this only is the beginning. “The number of bankruptcies is likely to increase considerably in April and May,” claims Tomasz Starus, director of risk assessment in the Euler Hermes.

The majority of bankrupt companies are in large urban areas, especially in Mazovia and Silesia. These regions are dominated by exporters, who were the first to experience the effects of the crisis and who have suffered the most.

Still the wave of bankruptcies is quickly spreading outside large economic centres.

According to Euler Hermes, the largest group of the bankruptcies, 31 percent, has been in the manufacturing sector. There was also an increase of the number of service companies winding down, up to 24 percent, as well as retail firms. (jm/pg)

Source: Rzeczpospolita