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Bankruptcies soar in Finland due to economic stagnation

Published : 20 Sep 2023, 23:38

  DF News Desk
DF File Photo.

Bankruptcies in Finland have surged by 22 percent over the past 12 months, according to figures published by Statistics Finland on Wednesday, reported Xinhua.

"The number of companies filing for bankruptcy rose over the course of 12 months to the level last seen during the euro crisis in 2013-2014," said Tommi Veistämö, chief actuary at the statistical agency.

A total of 283 bankruptcies were initiated in August 2023, 56 more than in the same month last year. Of the total, 77 were in the construction sector, while 25 were industrial companies.

Juhana Brotherus, Chief Economist at the Finnish Association for SMEs, attributed the surging bankruptcy to higher interest rates, increased costs, and sluggish economic growth. He warned in an interview with local media on Wednesday that this year's bankruptcy figures in Finland are expected to approach the levels witnessed during the 2007-2009 financial crisis.