Five hundred and eleven companies declared bankruptcy in Poland in the first six months of this year, 20 percent more than in the same period last year, trade credit insurer Euler Hermes has reported.
Tomasz Starus, a Euler Hermes management board member in charge of risk assessment, said that in 2018 as a whole the number of insolvencies among Polish companies was expected to grow by around 10 percent in year-on-year terms, followed by some 3 percent in 2019.
The growing number of insolvencies and restructuring proceedings may indicate that the Polish economy will soon face a slowdown, the Rzeczpospolita daily reported on Monday.
Roman Przasnyski, chief analyst at advisory firm Gerda Broker, said that enterprises were struggling against growing day-to-day operating costs, including the costs of raw and other materials as demand for goods increased.
Przasnyski added that the trend was coupled with high crude oil prices and rapidly growing energy prices, alongside labour shortages and rising salaries.
Meanwhile, intense competition does not allow growing costs to be passed on to consumers, Rzeczpospolita said.
Other countries in Central and Eastern Europe are also facing an increase in the number of insolvencies and restructuring procedures, the paper reported.