Coronavirus pandemic could trigger ‘bankruptcy boom’ in Belgium
Share article:
Share article:

Coronavirus pandemic could trigger ‘bankruptcy boom’ in Belgium

© Belga

Belgium must adjust its bankruptcy law if it wishes to avert a tsunami of business failures that could see tens of thousands of firms go bust after the summer.

Financial services company Graydon said that a major business crisis was looming and could hit Belgium just as the coronavirus crisis begins to recede.

Graydon estimates that as many as 50,000 businesses in Belgium could file for bankruptcy after the summer months, HLN reports.

Related News:


By contrast, just under 12,000 bankruptcies were recorded last year — the second-highest number ever recorded in Belgium, only behind 2013, when 12,306 companies went broke.

The coronavirus-imposed freeze on liquidations could further accelerate the financial fallout, unleashing a deluge of business failings which Graydon said could be too much for trade courts to handle.

Graydon also warned that a 2018 amendment to bankruptcy laws meant to give failing entrepreneurs a second chance could prompt a gush of business owners to go out of business in an effort to reemerge from the coronavirus crisis.

“Legislation was amended in May 2018 to include the basic idea of ‘a second chance — that is an easy solution,” Graydon’s Eric Van den Broele told HLN, nevertheless warning that it could create a domino effect, dragging in other companies or suppliers into the going-out-of-business vortex.

The financial services firm said that Belgian authorities should once again tweak business regulation in response to the coronavirus crisis, in a way which could allow judges to point entrepreneurs to bankruptcy alternatives in order to avoid giving fuel to the “bankruptcy boom” which began last year.

Gabriela Galindo
The Brussels Times

Latest news

Belgium implements ‘package of strict measures’
Not even a week after the previous measures came into force, Belgium is taking stricter measures to stop the fourth wave in the country, announced ...
Belgium in Brief: Saving The Holiday Season
No matter how you look at it, it's beginning to look a lot like... the holiday season. How people celebrate at this time of year varies depending ...
Brussels tunnels blocked by Uber driver protest
Several tunnels in the centre of Brussels were blocked on Friday morning by Uber drivers protesting against a ruling by the Brussels Court of Appeal ...
Even with strong action now, ‘we will still have a few weeks of misery,’ says Vlieghe
Even if the Consultative Committee takes powerful and clear decisions today, Belgium will still have to endure a few weeks of misery while the number ...
Police strikes at Brussels and Charleroi airports cause delays
Police unions are taking action at Brussels and Charleroi airports this Friday morning, causing delayed services at both locations. At 7:00 AM at ...
Belgium records highest number of new cases since start of pandemic
An average of 16,762 infections per day is now recorded in Belgium, with an absolute record of more than 25,000 infections in one day last Monday, ...
Study links social media use with depression in adults
While social media has been linked to anxiety and depression in teens, a new study now suggests that adults are also susceptible. In Belgium, a ...
Nearly half a million of lives saved by COVID-19 vaccination in Europe, new study shows
A new study published on Thursday estimates that at least 470,000 lives have been saved among those aged 60 years and over since the start of ...
Nightclubs to shut, bars close early, priority booster shots for teachers: reports
Belgium’s Consultative Committee may have decided on a closing hour for the hospitality sector and closing nightclubs again for a three-week period, ...
What’s on the table for the Consultative Committee this morning?
Just over a week after the previous meeting, Belgium’s Consultative Committee will meet again this morning to take stricter measures to stop the ...
Consultative Committee will announce latest measures from 1:00 PM
The Consultative Committee will announce the latest changes to Belgium’s coronavirus restrictions during a press conference from 1:00 PM, according ...
No parties, closing hour for bars: experts recommend these measures tomorrow
The GEMS expert group, which advises the government, delivered a new report to the authorities with recommendations for additional measures to be ...