In Finland, the number of bankrupt companies and firms continues to rise even in July. Many Finns may lose their jobs. Minna Pantzar, a columnist for the Yle TV channel, writes about this.
Minna Pantzar writes that more than 7,000 people in Finland are at risk of losing their jobs. According to the columnist’s statistics, such a figure is higher than for 2022.
“A warehouse in the city of Espoo is full of various goods up to the ceiling. We are talking about the property of bankrupt companies. Chairs, tables, tools, cabinets, cleaning products… For all these goods you can hardly get much money at an online auction – except maybe a few cars standing in the yard,” writes the author of the article (quoted by Foreign Media).
The journalist believes that this is a clear indicator of how the business sector in the Republic has been affected by the rise in inflation and interest rates caused by the coronavirus pandemic and the conflict in Ukraine. According to Statistics Finland, there were more bankruptcy filings in July 2023 than in any previous July in the 21st century.
“The number of bankruptcy filings in 2023 increased by about 20 per cent. Companies had more than seven thousand jobs at risk, a 20 per cent increase over the same period in 2022,” said bankruptcy specialist Terhi Mayala.
Terhi Maiala says this is a worrying situation, as there are no signs of stabilisation or improvement yet. The bankruptcy specialist believes that such negative indicators may soon affect the unemployment rate.
In addition, the columnist notes that many companies cannot even pay for bankruptcy proceedings. In her opinion, many representatives of creditors’ agencies “seem to have gone back to the so-called harsh methods”. Pantzar clarifies that the restrictions that supported firms during the coronavirus pandemic no longer function.
“There have always been a lot of bankruptcies in the construction and transport industries, but now there are particularly many. Now real estate agencies are also among the bankrupts, and this is quite rare,” lawyer Juho Mäkelä clarified.
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