KSV1870 projects 6,800 corporate insolvencies in Austria

The credit protection association KSV1870 projects approximately 6,800 corporate insolvencies for the full year, a figure consistent with previous levels. In the first three quarters, roughly 5,140 business failures were recorded, representing a 0.4 percent increase compared to the same period last year. The sectors most impacted include trade, construction, gastronomy, and hospitality.

A significant concern noted by the association is that 43 percent of insolvency proceedings are not being opened at all due to a lack of necessary capital. While preliminary liabilities as of September 9 were around 6 billion euros—a 7 percent decrease from the previous year—the human impact is rising, with 15,700 employees and 36,300 creditors affected.

Private insolvencies are seeing a much sharper increase. KSV1870 expects 7,390 debt settlement proceedings in the first three quarters, a 10.7 percent rise. This surge is attributed to the expiration of a three-year debt relief option in mid-July and a generally strained economic climate.