TNBiz (TNBiz)
Business  |  March 04, 2013 16:05:17

Doing business in the Czech Republic declined, more and more companies are not able to pay your bills


Most companies that have found themselves insolvent in February, has been in the field of trade, property management and construction. Turnover the major companies were insolvent construction company Zlínstav, as a business TIMELY, Ltd., and Otčenášek Ltd. insolvency petition on society TIMELY, Ltd., but was now the 21st Second court rejected because the applicant failed to concrete data regarding commitment.

"Even in 2013 we do not expect reductions in the number of insolvency proposals. Significantly contributes to lower consumer demand given the VAT increase and pessimistic forecasts of economic development for 2013," said Miloslav Osvaldová for Creditreform.

Given the high debt especially low-income consumer groups, would be Osvaldova restrictive government measures impact in the number of personal bankruptcies in the coming period."The proposals for insolvency firms expect modest growth throughout 2013. Bankruptcy case will increase especially the share of small and medium-sized companies," she finished.

Development of insolvencies in the coming months could affect the Insolvency Act amendment, which was discussed last week by the government. The amended legislation, among other things provides for the introduction of joint debt relief spouses. They will submit a proposal to allow discharge together and will be for the duration of discharge considered as a single borrower.

Optimistic view of the future offers a recent survey of ČR PwC among CEOs of Czech companies. It followed that the expected increase in sales, 59 percent of CEOs of major companies operating in the Czech market. Within three years, is confident about growth as nine out of ten directors.

During February also increase overall confidence in the domestic economy, though, according to results of a survey of the Czech Statistical Office on previous month economic sentiment indicator rose by 1.6 points. Analysts added that occasion that to positive GDP numbers can swing this summer.

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