Record Number Of Businesses To Cease In Hungary In 2013
- 6 Jan 2014 8:00 AM
The majority of the ceased businesses were liquidated last year but forced cancellations also played a significant role last year. In 2014 more businesses are exected to close their doors. More than 33 thousand businesses were closed last year which beats the record of 2010 by 16% according to Opten.
These figures can be exlained by liquidation and winding up processes that started back in 2012. Exactly 33,137 businesses ceased to exist in 2013 that went high over the negative record of the closure of 28,714 businesses in 2010.
Opten states that 61% of the closures were due to liquidation, 19% were caused by winding up and 5% occured because of forced cancellation. These figures are expected to rise as the number of forced cancellations has been gradually increasing since 2012.
Opten claims that the slow number of erosion can be explained by the changes of regulations in 2013. Changes like the increase of must equity are expected to have visible effects in 2014 and 2015. CEO of Opten said that another 40-45 thousand businesses are forecasted to be cancelled in 2014.
Source: ORIGO
By Christian Keszthelyi for XpatLoop.com
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