by The number of companies and individuals declaring bankruptcy rose 9.1% last year, which coincided with a gradual withdrawal of state-backed financial support during the Covid-19 pandemic. Some 14,081 businesses and individuals filed for bankruptcy in 2021, which is 1,169 more declarations of insolvency than in 2020, the Federal Statistical Office said on MondayExternal link. The large increase in bankruptcies can be partially explained by the withdrawal of financial measures that were introduced when the pandemic struck in 2020. This included payments to cover wages for workers on reduced hours and emergency loans backed by the state. In addition, implementation of bankruptcy laws was eased to allow companies more leeway before they were obliged to declare
Topics:
Swissinfo considers the following as important: 3) Swiss Markets and News, 3.) Swissinfo Business and Economy, Business, Featured, newsletter
This could be interesting, too:
Marc Chandler writes Sterling and Gilts Pressed Lower by Firmer CPI
Ryan McMaken writes A Free-Market Guide to Trump’s Immigration Crackdown
Wanjiru Njoya writes Post-Election Prospects for Ending DEI
Swiss Customs writes Octobre 2024 : la chimie-pharma détermine le record à l’export
The number of companies and individuals declaring bankruptcy rose 9.1% last year, which coincided with a gradual withdrawal of state-backed financial support during the Covid-19 pandemic.
Some 14,081 businesses and individuals filed for bankruptcy in 2021, which is 1,169 more declarations of insolvency than in 2020, the Federal Statistical Office said on MondayExternal link.
The large increase in bankruptcies can be partially explained by the withdrawal of financial measures that were introduced when the pandemic struck in 2020.
This included payments to cover wages for workers on reduced hours and emergency loans backed by the state. In addition, implementation of bankruptcy laws was eased to allow companies more leeway before they were obliged to declare insolvency.
However, these measures have been phased out in stages, which has removed the financial safety blanket propping up some failing companies that struggled to recover from the economic shock of the pandemic.
Financial losses resulting from bankruptcies in 2021 amounted to CHF4.2 billion ($4.5 billion), which is higher than the CHF3.3 billion average in the previous 17 years.
Some CHF1.7 billion resulted from three unusually large bankruptcy cases, the Federal Statistical Office said, without naming the affected parties.
In the first few months of this year, the situation appears to be getting worse. Company bankruptcies increased 40% in January and February compared to the same months in 2021, says the Swiss association of creditors, Creditreform.
Creditreform says it expects company insolvencies to increase by more than a quarter for the whole of 2022 compared to 2021.
You Might Also Like
Swiss web TV channel to broadcast in Ukrainian
2022-03-28
Diaspora TV Switzerland launched a new service in Ukrainian on Sunday to help meet the information needs of refugees arriving from the war-torn country.
Ukraine urges Switzerland to clamp down on Russian money
2022-03-28
An advisor to Ukrainian President Volodymyr Zelensky says the Swiss should be more proactive in looking for Russian funds. But according to a legal expert, current regulations do not allow authorities or banks to do more active searches beyond what’s in their current registers.
Switzerland triggers wide range of sanctions against Russia
2022-03-04
More than a million Ukrainians have fled their country since the Russian invasion.
Switzerland said it is activating sanctions against Russia on Friday, including a ban on many industrial exports and wide-ranging restrictions on financial activities, which includes cutting Russian banks from the SWIFT financial messaging system.
After pandemic slump, Swiss exports boomed in 2021
2022-01-28
Swiss exports climbed to record levels in 2021, with chemicals and pharma driving much of the growth. Watches, especially luxury ones, also had a good year.
Zurich court rules Uber drivers are not ‘independent workers’
2022-01-08
The latest cantonal ruling on the US ride-hailing firm comes as a national framework to determine the status of gig economy workers in Switzerland is still lacking.
Why Switzerland props up its ailing sugar industry
2021-12-11
Every year from October to December more than 1.5 million tonnes of sugar beets grown in Switzerland are harvested to supply the country’s sugar industry – an industry being kept alive by massive government subsidies. SWI swissinfo.ch reports from Aarberg, home to the country’s largest sugar factory.
Call to tap potential of professional working women
2021-11-17
Women make up half of the highly skilled workforce in Switzerland, but work fewer hours, according to a study published on Tuesday. One in three would like to work more, under certain conditions.
Controversial crypto exchange hopes for warm Swiss welcome
2021-11-02
Two months after paying a $100 million fine in the US for illegal trading operations, cryptocurrency exchange BitMEX is lining up a test for Switzerland’s financial regulator.
Tags: Business,Featured,newsletter