Euler Hermes warns of a “burial ground for companies”

Corporate bankruptcies will rise by 35% this year, according to a study by credit insurer Euler Hermes, the FT reports.

It says the rate of corporate collapses will reach "historic" highs in 2009 following a 27% increase last year, under-lining the brutality of the economic crisis.

"We are looking at a burial ground for companies everywhere in the world and at least until the end of 2009," the study says.

"We have only rarely seen an increase of more than 10%," said Karine Berger, chief economist at Euler Hermes. "To see it two years running is unprecedented."

  • The US saw 54% and will experience a further 45% rise this year
  • In the eurozone there will be an increase of 7%
  • No rises in German corporate insolvencies last year but will rise by 10% in 2010.
  • Spanish business insolvencies rose 187%.
  • UK companies will suffer a 40% rise in collapses.
  • Hungary, Poland and the Czech Republic will suffer rises of about 30%
  • France, Switzerland will face rises of about 15%

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