High interest rates and the termination of large-scale government assistance provided to companies during the COVID-19 pandemic have hit businesses in most developed economies hard, resulting in double-digit bankruptcy growth rates, the Financial Times reports.
Thus, the number of corporate bankruptcies in the United States for the fiscal year ended September 30 increased by 30% compared to the same period a year earlier.
In Germany, which is the largest economy in Europe, the number of bankrupt companies increased by 25% in January-September. Since June, double-digit growth rates have been recorded every month, the country’s statistical office said.
According to the EU statistics agency, the number of insolvent companies in the community countries increased by 13% in January-September and reached the highest level in eight years. In France, the Netherlands, and Japan, the number of bankruptcies in October increased by more than 30% year-on-year. In England and Wales, the insolvency rate in January-September reached its highest level since 2009.
The Organization for Economic Cooperation and Development recently reported that in a number of countries, including the Nordic countries of Denmark, Sweden and Finland, the number of corporate bankruptcies has exceeded the levels of the global financial crisis of 2008-2009.
The main negative factors are “the cost of debt servicing and the withdrawal of pandemic support, as well as high energy bills, especially in energy-intensive sectors,” according to Capital Economics Chief Economist Neil Shearing.
According to analysts, most bankruptcies were recorded in the transportation and hospitality industries.
Shearing warned that the trend of deteriorating solvency of companies will continue, as many businesses will have to refinance their debt at higher rates in the coming months, even though central banks are expected to have already reached their peak.
The surge in bankruptcies will put pressure on global economic activity and job growth over the next few years, experts say.
The international rating agency Moody’s expects the number of defaults of companies with speculative grade ratings in the world to continue to grow in 2024 after it already exceeded the average for recent years in October.
German insurer Allianz predicts that the global insolvency rate will reach 10% next year, up from 6% in 2023. The hospitality, transportation and retail sectors will be most affected.
“We are seeing an increase in corporate bankruptcies in almost all countries,” said Maxim Lemerl, a leading analyst at Allianz Research.
In December, OTP Bank made a charitable contribution of UAH 11 million to the Superhumans Center. This amount includes UAH 10 million for the creation and provision of personalized wards for the Superhumans Center, as well as UAH 1 million for prosthetics for the center’s patients.
“In this powerful partnership with the Superhumans Center, we are inspired and motivated to seek and find new opportunities to support our heroes. As a result, the patients will receive the necessary rehabilitation, and the center will receive additional equipment,” said Volodymyr Mudryi, CEO of OTP Bank.
The total amount of OTP Bank’s assistance to the Superhumans Center has already amounted to UAH 21 million: in addition to the UAH 11 million just transferred, more than UAH 3 million was raised at a charity auction dedicated to the Independence Day of Ukraine, and OTP Bank added to these funds and transferred another UAH 5 million to the Superhumans Center to create an educational center on its basis. In addition, the bank transfers UAH 1 million to the Superhumans Center’s account on a monthly basis.
“As long as our heroes need support, we will not stop! We urge all our customers and partners to join the bank’s charitable initiatives,” said Lesia Syrota, OTP Bank Retail Sales Director and team leader of the OTP Bank Helps Ukraine project.
Thus, until December 25, OTP Bank is holding a charity Christmas auction, the proceeds from which will also be transferred to the Superhumans Center for prosthetics for defenders who lost their limbs in the war and need comprehensive treatment and rehabilitation. All customers of the bank can take part in the charity auction in the OTP Bank UA app. The full list of lots is available on the website.
We remind you that in September OTP Bank and Superhumans Center signed an agreement on charitable donation for 2023-2024.
In 11 months of 2023, Ukrhydroenergo paid UAH 7.9 billion in taxes, duties and other mandatory payments to the state budget, including UAH 2.2 billion in dividends.
According to the company’s press release on Tuesday, in addition to taxes, direct assistance to the Armed Forces amounted to more than UAH 200 million during the year.
“In the context of confronting the aggressor, one of the main tasks of all enterprises, regardless of ownership, is to pay taxes in full and on time. This is primarily additional funds for the resilience of the Armed Forces, social support for Ukrainians affected by the Russian armed aggression and the restoration of our country,” Ukrhydroenergo emphasized.
LLC “Kovalska Beton”, a member of industrial and construction group “Kovalska”, has concentrated 100% of the authorized capital of JSC “Darnitsky ZZHBK” and JSC “Svetlana Kovalska Plant of Reinforced Concrete Structures”.
As “Kovalska Beton” reported in the information disclosure system of the National Commission on Securities and Stock Market (NCSSM), the company as a result of the conclusion of sale and purchase agreements concentrated the dominant controlling stake in JSC “Svetlana Kovalska ZZHBK” in the amount of 18 million 331 thousand 256 shares and the dominant controlling stake in JSC “Darnitsky Plant of Reinforced Concrete Structures” in the amount of 86 million 814 thousand 40 shares.
JSC “S. Kovalskaya Plant of Reinforced Concrete Building Materials” was established in 1995 on the basis of the enterprise of the same name. According to its data, production capacity is over 1.4 million cubic meters of concrete mixtures, 120 thousand cubic meters of reinforced concrete products, 300 thousand square meters of shaped paving elements per year.
According to the results of 2022, the net loss of the enterprise increased to UAH 534 mln, net income decreased to UAH 704 mln.
JSC “Darnitsky Plant of Reinforced Concrete” (until 2010 – OJSC) was established in 1996 on the basis of the plant of the same name commissioned in 1951. The plant is one of the largest manufacturers of reinforced concrete products, wall blocks and ready-mix concrete for residential and public construction projects in Kiev, also produces metal products, including specific structures for railroads, bridges, ports and piers.
According to the financial results of the company, its net loss at the end of 2022 amounted to UAH 32 mln, net income – UAH 240.1 mln.
As of the third quarter of 2023, the sole shareholder of both JSCs is “Industrial and Construction Group Kovalska” LLC (100%).
“Kovalskaya Beton” was established in 2022. According to Opendatabot, the founder of the company is PSG Kovalskaya LLC, the ultimate beneficiaries are Alexander and Sergey Pilipenko.
Darnitsky Plant of Reinforced Concrete Structures, Darnitsky ZZHBK, KOVALSKA, Sergey Pilipenko, Svetlana Kovalska Plant of Reinforced Concrete Structures, Svetlana Kovalska ZZHBK, Ковальська Бетон
As of 10:00 a.m. on December 19, Kyivstar, Ukraine’s largest telecom operator, restored high-speed mobile internet in the Kyiv subway, and earlier mobile internet was restored in the Kharkiv subway, the company’s press service said on Tuesday.
“The My Kyivstar information system has been restored, where subscribers can view their account balances. Kyivstar’s telecom network has almost entered the stabilization period,” the statement said.
On the territory controlled by Ukraine, 99% of the base stations are in working order, and all basic services are available to customers: communication and mobile Internet services, SMS, international voice roaming services, etc., the mobile operator’s press service said.
In addition, Kyivstar stores have restored most services.
It is noted that Kyivstar continues to improve the Home Internet service in Kyiv and a number of other places, and also plans to gradually remove restrictions on mobile Internet speeds in the near future.
“Kyivstar specialists are working on the launch of high-speed mobile Internet in roaming and plan to launch this service for Ukrainian subscribers in Germany, the Czech Republic, Poland and a number of other countries in the near future,” the company said in a statement.
To stabilize the services, the company has engaged all available technical staff, as well as international partners from Sweden, Ireland, the United States, China, Finland and other countries, the press service said.
Earlier it was reported that Kyivstar expects to achieve full stabilization in the provision of services by the end of the week.
After a failure in the early morning hours of December 12 caused by a large-scale cyberattack, Kyivstar began restoring voice services in the evening of December 13, the company’s mobile Internet service started working again in some regions a day later, and the company announced its full restoration in the country on the evening of December 15.
On December 17, Kivestar resumed providing voice services, including roaming, mobile data, Home Internet, virtual private network (VPN) services and started restoring access to M2M (Machine-to-Machine) services for business customers. Kyivstar restored access to SMS services, including international roaming, and M2M services on 18 December.
Harvest volumes of grains and pulses, mln tons
Source: Open4Business.com.ua and experts.news
