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11 Apr, 2023 08:09

EU nation hit by wave of bankruptcies

Insolvencies in the Netherlands have been rising amid soaring inflation and energy costs, according to a tracking website
EU nation hit by wave of bankruptcies

The number of bankruptcies in the Netherlands has more than doubled in the first quarter of 2023, the NL Times portal reported on Sunday, citing data by Faillissements Dossier.

According to the report, cafes, restaurants, retail shops and online retailers have been the most affected businesses.

Some 781 companies and institutions reportedly went bankrupt in the country from January to March, compared to 506 a year earlier. The number of bankrupt cafes and restaurants nearly tripled to 54, the data showed.

The report attributed the growing number of insolvencies in the Eurozone's fifth-largest economy to a sharp increase in energy prices and high inflation levels.

The Statistics Netherlands agency (CBS) said last month it would change the way it measures energy prices paid by consumers in order to improve estimates of inflation. According to CBS, it will start using transaction data from energy suppliers to determine the real costs for consumers.

Credit insurer Atradius earlier forecast that more than 4,000 companies in the Netherlands could go bankrupt in 2023 due to high energy costs, rising interest rates, and high wage demands.

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