European companies were on the verge of bankruptcy because of state money


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Assistance from the European Central banks have increased the risk of economic shock to businesses. After the termination of financial support, thousands of companies will be on the verge of bankruptcy, according to Bloomberg.

The number of bankruptcies in the UK, despite the crisis, from April to June dropped by about 30 percent compared to the same period last year. In Spain, this figure fell by almost 60 percent, the situation is similar in Germany and in France.

This happened due to the fact that thousands of companies are on “life support”. They receive state financial support, including subsidies for wages, even if they would have faced problems without pandemic coronavirus.

In Russia for the first half of the number of bankruptcies among citizens increased by 47 per cent (42.7 per thousand people), and among legal entities decreased by 26 percent. The leaders according to this indicator, Moscow, Moscow oblast and St. Petersburg.

Video, photo All from Russia.


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