Filenews 10 January 2022 - by Theano Thiopoulou
Businesses in Cyprus are closing at a steady pace with the upward trend becoming apparent from 2015 onwards.
However, the number of voluntary liquidations associated with the pandemic is lower than that shown for the whole of 2020, the year the lockdown was implemented. More specifically, from April to December 2020 the number of voluntary liquidations is 1,703, compared to 2,235 for the entire year. It should be noted that in April 2020 the lowest number of bankruptcies since 2011 was recorded, at only 29. The pandemic has affected the operation of several businesses, however, the effects of the pandemic will be more seen in the coming months.
Close to 20,000 are the voluntary liquidations that took place in Cyprus in the last decade, according to the data of the Insolvency Service, while the orders for the liquidation of companies exceed 1300. From the analysis of the Insolvency Service's data, the total voluntary liquidations in the eleven months of 2021 are 1,861, in 2020 it was 2,235 from 2,097 in 2019, 2,378 in 2018 and 2,497 in 2017. In November 2021, voluntary liquidations are 192 from 220 in 2020, in October 2021 it was 148 from 142. In 2020, in September 2021 it was 164 from 196 in 2020, in August 2021 it was 108 from 146 in 2020. In July 2021 it was 158 from 226 in 2020, in June it was 204 from 213 in 2020, in May it was 139 from 195 in 2020, in April 193 from 29 in 2020, in March 2021 at 180 from 124 in 2020.
The government's moves and the support plans announced for businesses and workers to address the economic impact of the pandemic, both in Cyprus and in Europe, have resulted in the prevention of a large number of company bankruptcies.
As the data shows, there is relatively low interest in personal repayment plans. Applications in the eleven months of 2021 reached 183 from 102 in 2020, 63 for 2019, while the number has been stable for the past three years. For example, in 2018 it was 65, in 2017 it was 60 and in 2016 it was only 35. This tool, while believed to be an ally for indebted households, has not been fully exploited. Regarding the issuance of a decree cancelling debts up to €25,000 for citizens who meet the criteria, their number reached 51 in 2020 from 107 in 2019 and 162 in 2018.
In Europe since the beginning of the pandemic in 2020, governments have taken measures to support small and medium-sized enterprises. The 24 million SMEs in the EU are the backbone of the economy, accounting for 99% of businesses in the EU. Before the start of the coronavirus pandemic, small and medium-sized enterprises produced more than 50% of the EU's GDP, employing around 100 million people. The European Union must help them survive the COVID-19 crisis. Small and medium-sized enterprises need more resources to cope with complex bureaucratic requirements. Excessive administrative and regulatory burden hampers their growth and prosperity, said MEPs, who called for the creation of a roadmap with concrete and binding targets to improve and simplify the regulatory framework.
