COVID-19 will drive a 26% spike in corporate insolvencies, according to Atradius.

The credit insurer said the UK was expected to experience the largest GDP contraction in Europe following a more stringent lockdown and Brexit uncertainty.

It expected most of the resulting insolvencies to fall in the second half of 2020 and said economies reliant on tourism would fare particularly badly.

John Lorié, chief economist at Atradius, said: “Government measures have reduced the anticipated increase in bankruptcy filings in a range of ways. They have either shifted the threshold for filing, reduced a debtor’s ability to force bankruptcy, or provided sufficient financial support to delay filings. However, as the support programmes begin to expire, the number of filings should climb rapidly.”

Share Story: