From Novinite

Bulgarian employers see 2011 as year of bankruptcies

The overhaul of Bulgaria's economy in its third crisis year will lead to bankruptcies and consolidation of business, managers of local employers' organisations said on January 17 2011.

"
2011 will be a year of healing bankruptcies. Many companies have so far delayed the suspension of their businesses at all costs, but it looks like it will happen this year,"
chairman of the Confederation of the Employers and Industrialists in Bulgaria (CEIBG), Ognyan Donev, said.

Companies forced to terminate their operations in 2011 will be also entities with "
shattered economic health, not acquired by their rivals,"
he said.

Bozhidar Danev, who chairs the Bulgarian Industrial Association (BIA), said the highest risk of insolvency would threaten the construction sector due to the significant amount of risk capital poured into the industry during the property boom.

According to Registry Agency data, the number of insolvencies in 2009 was 30 per cent higher than a year previously, while the court declared bankrupt 312 firms.

Meanwhile, economists said that closure of companies or acquisitions by rivals will be seen in all sectors, a trend to be fuelled not only by stagnation of the economy, but also by the continuing decline in turnovers, Lachezar Bogdanov, an analyst with Industry Watch.

Bankruptcies and business consolidation will be mainly seen in construction and related industries, but the process will also hit other sectors such as trade, tourism and transportation, Bogdanov said.

Unfortunately we are in a global financial downturn and this has affected nearly all the countries in the world. Bankruptcies in the UK hit a high last year with businesses and personal bankruptcies, let's hope that 2011 will be a more prosperous year for everyone in BG and the UK.

Time to change the locks on your barns/doors peeps especially if they are the one's that have a single digit number on them.Early BG mortice locks only had less than ten variations of key.Crime is on the up here and home security is the order of the day! On a good note the Bulgarian villagers are survivors and the wood for the Petchka can only get cheaper!

mmm one of the main reasons for the glut of failed businesses is that they were not legal in the first place. selling a house for 4,000 levs instead of 60 thousand euros was common place to avoid tax, now that they have to show transactions through the banks means they cannot avoid the tax evasion, so they dont want to play anymore. nothing to do with recession, more to do with avoidance. thats why so many have not re registered. about time too.

ABC Property Surveyors.BG wrote:

Time to change the locks on your barns/doors peeps especially if they are the one's that have a single digit number on them.Early BG mortice locks only had less than ten variations of key.Crime is on the up here and home security is the order of the day! On a good note the Bulgarian villagers are survivors and the wood for the Petchka can only get cheaper!

Unfortunately, that is quite correct - you have to be very vigilant. A few months ago, my petrol cap was stolen by the operator at a filling station. He was later sacked when caught doing this to other customers, but caused me a lot of trouble as I didn't want to buy a new one at 200 leva, so had to waste time going round scrapyards to find a s/h one.