Insolvency wave records Austria: record numbers and worrying causes!
Insolvency wave records Austria: record numbers and worrying causes!
In 2024, Austria recorded an alarming increase in corporate insolvencies that have risen to a record level since 2009. Cornelia Wesenauer, member of the management of the Alpine Banker Association (AKV), explained in an interview with Leadersnet are. Particularly tense economic framework, such as the interest rate policy of the ECB, high inflation and a shrinking economy according to the Covid 19 pandemic, have contributed to the fact that many companies are in the crisis. As a result, sectors such as the real estate industry in particular are increasingly affected by bankruptcies, where the urge after quick profit and risky investments often led to catastrophic financial failures.
real estate and construction industry.
Wesenauer emphasizes that companies in the real estate industry often resorted to aggressive financing strategies, aiming for short -term profits. These risky practices meant that many companies slipped into bankruptcy without sufficient equity. The economic analyzes show that the explosive real estate price development in the past has tempted entrepreneurs to invest in new projects without considering the real market situation. The effects of inflation and changing consumption behavior are also fatal in other areas, such as trade and gastronomy. Reports from the trade industry describe a wave of spectacular insolvents in which once established companies were insolvent due to increased costs and falling income, such as Die Zeit
The current situation reveals a troubling development in the Austrian Economic Climate. More than half of the bankruptcies are not applied for by the companies themselves, but by creditors who are waiting for their money. In over 55 percent of cases, bankruptcy often comes too late if companies are already in a critical condition. With every bankruptcy, the question arises of necessary changes in bankruptcy law in order to better meet the circumstances. The challenges caused by the Covid 19 pandemic and geopolitical tensions have overthrew numerous companies into an existential crisis and make it clear that preventive measures and sensitization are essential for financial problems.
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| Ort | Bamberg, Deutschland |
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