Reply #43: Insolvencies to rise in developed countries -report [View All]

[UpInArms]

http://www.reuters.com/article/bondsNews/idUSL2063206320080220?sp=true

MADRID, Feb 20 (Reuters) - The number of insolvencies is set to rise in Western economies due to the global credit crunch and the end of housing booms in countries such as the United States, Britain and Spain, a report said on Wednesday.

The number of insolvencies in Western Europe is expected to grow by 5 percent in 2008, after dropping 11 percent last year, according to a report by Euler Hermes (ELER.PA: Quote, Profile, Research), the world's biggest credit insurer.

Insolvencies have remained at historic lows over the past few years as low interest rates and abundant credit helped struggling companies refinance their debt, avoiding collapse. The situation is different now.

"The scene ahead is not catastrophic but we have to be very cautious because we have a change in the world economy that can have an effect on many countries," Nicolas Delzant, member of the board at Euler Hermes, told a news conference in Madrid.

The United States will suffer less this year, with an expected 5 percent increase in insolvencies, after seeing them soar by 50 percent last year, the report said.

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Has anyone seen a report from 2007 for insolvencies of 50 percent?

something about this article makes my head hurt :shakesheadbackandforth: