The Austrian economy is doing significantly worse than the current insolvency figures suggest. Karl-Heinz Götze, head of insolvencies at the KSV1870 credit protection association, warns that this is due not least to a “political trick” (extension of the obligation to report insolvency, deferrals etc.). “At some point the moment of truth will come, and the damage will increase with each passing day. There are more and more rescued companies that are sweeping healthy companies with them. "
In addition, the employees in the failing companies would be missing in other workplaces, said Götze in an interview with the APA. AMS boss Johannes Kopf has already pointed this out in the past. In any case, short-time work cannot be permanent, said Götze. It is noticeable that the vast majority of insolvencies are not in the catering and hotel industry, which has been particularly hard hit by the corona pandemic - this is the largest decline in years. On the other hand, the bankruptcies in the construction industry, which actually got through the crisis quite well, are still high.
60 percent fewer bankruptcies
The trend of the previous year has recently continued in all industries: In the past six months, around 60 percent fewer company bankruptcies were counted per week than before the crisis. The first quarter of 2021 saw the lowest number of bankruptcies since 1977. The economic crisis itself has been responsible for almost 14 percent of all insolvent companies since the beginning of the first lockdown, according to Götze, referring to an analysis of the completed procedures.
“The result, which appears positive at first glance, is anything but encouraging for the domestic economy. In the long term, this can result in far more serious problems than is already the case at this point in time, ”warns the insolvency expert.
From today's perspective, KSV1870 assumes that both the number of company bankruptcies and corona-related bankruptcies will not increase until autumn 2021 at the earliest. In addition, it is quite conceivable that at the end of the current year the number of company bankruptcies could not be dramatically higher than in the previous year.