Belgium sees surge in consumer credit arrears and record corporate bankruptcies

In Belgium, the number of overdue consumer loans has risen sharply, marking the strongest increase since 2021. About 242,744 borrowers are currently struggling to repay private loans, pushing total arrears to nearly €1.6 billion. New registrations of overdue credits jumped 16% in 2025 to roughly 110,000, even as the overall number of borrowers fell to 4.9 million. The pressure stems from essential living costs and the growth of low‑price online retailers, while ‘buy‑now‑pay‑later’ services remain largely untracked. An EU directive set to take effect later this year will subject BNPL providers to the same credit‑worthiness checks as traditional lenders.

At the same time, corporate distress is intensifying. In the first half of 2026, 6,267 Belgian firms declared bankruptcy – a half‑year record and a 4% rise over the same period in 2025. Flanders recorded the highest number of filings (3,684), while Brussels and Wallonia saw 1,092 and 1,341 respectively. Small enterprises dominate the wave, with the construction sector accounting for 1,372 closures, followed by transport (456) and business services (949). Despite the surge, job losses linked to bankruptcies fell 10.7% to 11,734 full‑time equivalents. Industry leaders are calling for measures such as reduced construction VAT, greater public investment in infrastructure, and more flexible permitting.