Insolvencies across different countriesThe differences in the level of insolvencies between countries result from various economic, institutional, and legal conditions. In 2019, France was the country with the most business insolvencies worldwide. With 52,100 insolvencies reported in that year, it had more than twice as many insolvencies as the second country on the list, the United States. In China, the number of business insolvencies has grown dramatically in recent years, increasing almost fourfold since 2015 to reach 12,750 in 2019. While this increase is partially due to the growth of corporate debt in China over this period, it also reflects changes made to bankruptcy processes. In 2007, the Chinese bankruptcy code was overhauled, and specialized courts for bankruptcy proceedings were established between 2007 and 2017.
Effect of coronavirus pandemic on the number of insolvenciesThe governments all over the world have restricted operations in many businesses due to the outbreak of coronavirus (COVID-19) pandemic. It is quite probable that numerous companies operating in such sectors as personal services, retail trade or travelling will face serious financial problems and in worst case scenario file for bankruptcy.
On the other hand, many countries have also offered unprecedented levels of financial support to businesses, which may partially mitigate the worst effects of the crisis.