Continued high bankruptcy level

New data from Statistics Denmark show that the number of bankruptcy filings rose to 511 in January from 420 in December.
In spite of the considerable increase it is important to be aware that the level of bankruptcies is finding a reasonably stable level, Danske Bank wrote.
The financial crisis is weakening, a situation which is supported by a rising private consumption and a growing export rate. Also the historically low interest rate level helps to reduce the businesses’ interest expenses.
»In this connection it must be remembered that the bankruptcies normally come with a certain delay to the slowdown of the economic activity. Although the activity is now again increasing, it does not also mean that the number of bankruptcies will fall,« economist Tore Damgaard Stramer said in a comment from Danske Bank.
The bankruptcy level will continue at a high level, and this is in particular due to the banks’ and mortgage credit associations’ increased credit squeezes and the hangover from the crisis, which now means that the bankruptcies also affect the more well-established businesses. Direkt/BNS