Czech Republic: Alarming Increase of Private Bankruptcies

Czech Republic: Alarming Increase of Private Bankruptcies / Picture: © Flickr

The number of private bankruptcies increased 13 percent to a new record of 19,165 in 2013. However, according to credit register company CRIF, growth slowed down last year compared to the previous years. "Despite the initial fast growth in personal bankruptcies, their dynamics decreased significantly in the last year," CRIF analyst Vera Kamenickova said. The number of filed appeals for private bankruptcy increased ten percent to 26,269 in 2013. A total of more than 57,000 private bankruptcies were declared and more than 84,000 petitions for personal bankruptcies filed since the beginning of 2008.

While 17 percent of the filed bankruptcies were rejected by the courts from 2008 to 2013 because of formal errors only 0.4 percent were disapproved because debtors did not meet the conditions to declare bankruptcy.

In November households debts to banks increased by CZK 7.8bn on a monthly basis to a total of CZK 1,210bn as reported by the CNB in December. One-day deposits rose by CZK 2.2bn in November and by CZK 78.9bn on an annual comparison basis to CZK 1,210bn. Deposits with agreed period of notice, including time deposits, come at a total of CZK 332.39bn, which is a decrease of CZK 643m compared to October; however compared to the same month in 2012 it is an increase of around CZK 3bn.