Fewer Greek Companies Go Bankrupt

ATHENS – With scores of thousands of businesses closing in Greece the last four years during a crushing economic crisis, the number of those seeking bankruptcy protection has started to slacken.

The number of companies that filed for bankruptcy in Greece last year declined by 5.5 percent from 2012, according to ICAP Group data released on July 22nd by the Federation of Business Information Services (FEBIS) concerning Western Europe.

While the number of companies in Western Europe going bankrupt posted a 1.1 percent rise compared with the year before, there were only 392 firms going through the process in Greece, compared with 415 in 2012.

But in Greece – where the economy shrank 3.9 percent last year – only a small number of corporate bankruptcies are conducted through the formal procedure provided for by law.

The report says it remains to be seen whether the drastic measures taken in Eurozone periphery countries – including Greece – have contributed to the improvement in their competitiveness and that they can in fact respond to market pressures.