Bankruptcies up 16% to June
There were 3,000 bankruptcies registered for Portugal in the first six months of this year according to a report from the Spanish consultancy Iberinform.
The consultancy revealed an increase in company bankruptcies of 16.1% mostly because the companies were unable to withstand the economic crisis caused by the Covid-19 pandemic. This was +389 on the previous year.
Nevertheless, the consultancy points to a slight improvement between May and June, with a total of 432 bankruptcies, a fall of 10.7% on the previous month April to May “which could point to a downward trend in the indicator.”
Porto and Lisbon are the districts with the highest number of bankruptcies, 697 and 652 respectively. There was an increase of 33.9% on 2020 in Lisbon and 15.4% in Porto.
The first half of the year closed with an “increase of 24% in Insolvencies Submitted by Third Parties, while Insolvency Statements Submitted (ISS) by the companies themselves fell 4.1%.
Closures of companies which had presented an insolvency plan were up 43.7% on the first half of 2020 or 1,683 companies, corresponding to the completion of more than 295 winding up processes than for the like-for-like period in 2020 (+21.2%).
Regarding sectors affected, the most significant number of company bankruptcies was seen in sectors such as electricity, gas and water (+150%), telecommunications (+133.3%), hotels and hospitality (+76.6%) and the extractive industry (+75%).
Bankruptcies within the construction and public works sector grew 27.1%, while company failures for car concessions and companies increased 14.5% on last year.