Bankruptcy has grown by 18% in the Valencian Community in the month of January. According to Iberinform’s monitoring of bankruptcy proceedings published in the BOE, the business fabric in Spain recorded a 15% year-on-year increase in business insolvencies in January.
The lockdowns and moratoriums enacted during the first wave of the pandemic drastically reduced the filing of bankruptcy proceedings across Europe. Both Spain and the markets around us have adopted measures to curb bankruptcy filings, modifying the filing thresholds, reducing the creditor’s ability to force their admission for processing or providing sufficient financial support to the debtor to delay their filing.
In the case of Spain, a third extension of the bankruptcy moratorium has been declared until 30 June, 2022. Despite this legal shield, which exempts companies in a situation of insolvency from their obligations to file for bankruptcy, the data reflects an increase in the levels of bankruptcy.
Catalonia (28% of the total) and Madrid (another 19%) are the autonomous communities where the most insolvencies are declared. They are followed by the Valencian Community (18%) and Andalusia (7%). By sectors, insolvencies predominate in the commerce sector (22% of the total) and construction (22%), followed by the manufacturing industry (15%), business services (13%) and hospitality (10%).
In January 2022, the incorporation of companies registered a moderate growth of 7.1% compared to the same period last year. The creation of a new business fabric is concentrated in Madrid (20% of the total), Catalonia (19%), Andalusia (18%) and the Valencian Community (13%).
By sectors of activity, new companies predominate in the construction sector (30% of the total), followed by commerce (17%), and business services (15%). They are less intense in the hospitality sectors (9.8%), manufacturing industry (5.3%) and the primary sector (2/%).
In January 2022, the dissolution of companies registered a growth of 20% compared to the same period last year. The destruction of the business fabric is concentrated in Madrid (26% of the total), Andalusia (14%), the Valencian Community (13%) and Catalonia (8%).
By sectors of activity, there are more new companies in the construction sector (22% of the total), followed by commerce (19%), and business services (14%). They are less intense in the sectors of manufacturing industry (6.7%), hospitality (5%) and the primary sector (1.3%).
