The number of bankruptcies of Russian citizens and individual entrepreneurs (IE) increased by 72.6% in 2020, while the number of corporate bankruptcies decreased by 19.9% due to the moratorium imposed by the authorities, Fedresurs reports.
“In the segment of consumer bankruptcies, the rapid growth continued. The number of citizens (including individual entrepreneurs) declared bankrupt in 2020 amounted to 119,049, which is 72.6% more than in 2019,” the Fedresurs statement reads.
It is noted that citizens, as a rule, initiate their own bankruptcy themselves: in 94.5% of cases in 2020 (90.7% in 2019). The share of bankruptcy creditors as applicants fell from 7.5% to 4.6%, while the FTS of Russia dropped from 1.7% to 1.0%.
In total, during the existence of the consumer bankruptcy procedure, from October 2015 to the end of 2020, 282.3 thousand citizens of the Russian Federation became insolvent.
“Consumer bankruptcy, in contrast to corporate bankruptcy, in our country has a rehabilitative value: a conscientious citizen is freed from debts. That is why during the crisis period the state took measures to stimulate it by creating an additional procedure for out-of-court bankruptcy,” said Alexey Yukhnin, head of the Fedresurs project …
At the same time, in 2020, the number of corporate bankruptcies decreased by 19.9% by 2019, to 9,931, follows from the messages of arbitration managers in Fedresurse. The number of observation procedures introduced by the courts decreased by 23.3%, to 7,775.
“The moratorium on the filing of bankruptcies by creditors of companies and entrepreneurs from industries affected by the pandemic contributed to a decrease in the number of bankruptcies in 2020. The ban was lifted on January 7, 2021, but so far the number of reports of creditors about the intention to declare companies bankrupt does not exceed the average level of January 2020,” – commented the head of “Fedresurs”.
According to Yukhnin, for the period from January 8 to 11, 2021, when the moratorium on bankruptcy ceased to be in effect, creditors published 109 messages in Fedresurs about their intention to file a petition for bankruptcy of companies in court, 41 messages were published in relation to companies falling under the moratorium. By comparison, in January 2020, creditors posted 2,019 messages.
It is noted that in 2020, bankruptcy creditors, as in the previous year, initiated most of the procedures: 77.1% (78.1% in 2019). The share of the Federal Tax Service of Russia as an applicant increased from 12.6% to 13.0%, the share of debtors increased from 8.7% to 9.3%.
“The uncertainty of the economic situation in the country and in the world could lead to an increase in creditors’ applications for declaring bankrupt debtors experiencing temporary difficulties. It could rather be a psychological moment. The moratorium helped to relieve unnecessary tension and, in a difficult situation, helped to maintain the stability of the business,” the deputy minister said economic development Ilya Torosov.
According to him, this year, with the introduction of the moratorium, the number of company bankruptcies from January to November decreased by 20% and amounted to less than 9 thousand.
Regional and sectoral profiles
According to Fedresurs, the largest number of reports on the introduction of bankruptcy proceedings against companies was observed in 2020 in Moscow (2012 reports), St. Petersburg (729), Moscow (706) and Sverdlovsk regions (349).
Among the industries, the largest number of reports on the introduction of bankruptcy proceedings were recorded in trade (2,583), construction (2,111), real estate (1,183) and manufacturing (1,090).
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