The progressive decrease in the number of bankrupts slowed down significantly last year as the panel survey of bankrupts in Estonia conducted by Krediidiinfo shows. At the same time, during the first two months of 2014 the number of bankrupts started growing again. 

Last year, 459 companies in Estonia were declared insolvent. The decrease in the number of bankrupt companies slowed down and diminished by 36 companies i.e. 7.3 per cent (the decrease constituted 20.5 per cent in 2012 and 39.5% in 2011). 

At the same time, the number of bankrupts has grown by 10 per cent in the first two months of 2014. It is quite likely that the level of bankruptcies can be expected to settle at 400-500 companies or display some growth during this year. 

As before, in 2013 a large proportion (67%) of bankruptcy proceedings abated because the court found that the enterprises held no assets (the corresponding indicator constituted 70.5% in 2012). 

The average bankruptcy rate last year constituted 2.6 companies per thousand or every 390th company (while it was every 331st a year before and every 257th two years before). 

The region to display the highest bankruptcy level last year was Valga County, followed by Pärnu County and Harju County (3.31, 3.02 and 2.85 bankrupts per thousand companies respectively). The counties displaying the lowest bankruptcy level were Jõgevamaa and Saaremaa, where the number of bankruptcies per thousand companies was below one. 

The sectors to show the highest bankruptcy rate were still accommodation and catering, construction and processing industry with 7.79, 4.77 and 4.39 bankrupts per thousand of enterprises respectively. It should also be noted that the top ten largest companies that went bankrupt in 2013 included seven enterprises of the construction sector, the most famous of which were, for example, Koger Projektijuhtimise AS, Estconde-E OÜ and Räga OÜ (former Facio Ehituse AS). 

A typical bankrupt company will be a firm with sales revenue below 0.5 million euros, no equity capital and several years of operating at a loss. Over three thirds of bankrupt companies were in tax arrears in the last year, and around a quarter were constantly in tax arrears throughout the year. Around 86 per cent of bankrupt companies received low rating from Krediidiinfo (C, B, BB) in their last year of active operation. 

Krediidiinfo AS has conducted panel surveys concerning the bankruptcy of Estonian companies since 2000.