Coface Group released the latest report on the financial situation of enterprises in France and the Eurozone, warning that there are a large number of potential bombs of “invisible bankruptcy” in Europe, and that invisible bankruptcy has been postponed due to loose government policies. It is only a matter of Time before many companies close down.
In France, the report points out that there are at least 22,000 companies at risk of collapse by 2022. According to Coface estimates, the number of hidden insolvency companies in the French construction, retail, manufacturing, business services and transportation sectors are 8,600, 1,800, 1,500, 1,200 and 800 respectively.
In Spain, Coface Group notes that the number of hidden insolvent companies in Spain is approximately 1,600. Coface pointed out in its report that the net profit of the retail industry in Spain fell by more than 20% in the second quarter, but the report pointed out that, assuming that the Spanish government did not take official leave measures, the proportion of the decline could be estimated to reach 70%, but the tourism industry is still unable to support, and the proportion of bankruptcy in the second half of last year grew by 90% annually. In addition, in Italy, Coface estimates that the number of companies with “invisible bankruptcy” pressure is about 1,600.
Coface pointed out in the report that the study found that the expected deterioration of corporate financial health, but the actual number of corporate bankruptcy and corporate financial health deterioration of the number of discrepancies, indicating that many companies have the risk of invisible failure, but the point of closure because of the government’s financial support is delayed.
The report states that, according to the study, the number of corporate insolvencies in major European economies showed a decline in 2020 while the new crown pneumonia spread in that year. For example, in Germany, the report estimates the number of hidden insolvent companies to be 21% lower than in 2019, and at the beginning of the New crown outbreak, Coface expected the German insolvency rate to rise by 9% in 2020, but it eventually fell by 15%.
The Coface Group will have approximately 4,450 employees in 2020 and global revenues of 1.45 billion euros. The Group focuses on global credit insurance and receivables underwriting, bonds, and corporate information services to assist companies in making credit risk decisions and strengthen their efforts in domestic and export trade markets by protecting their domestic and international receivables risks.
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