The number of companies and individuals declaring bankruptcy rose 9.1% last year, which coincided with a gradual withdrawal of state-backed financial support during the Covid-19 pandemic.
Some 14,081 businesses and individuals filed for bankruptcy in 2021, which is 1,169 more declarations of insolvency than in 2020, the Federal Statistical Office said on MondayExternal link.
The large increase in bankruptcies can be partially explained by the withdrawal of financial measures that were introduced when the pandemic struck in 2020.
This included payments to cover wages for workers on reduced hours and emergency loans backed by the state. In addition, implementation of bankruptcy laws was eased to allow companies more leeway before they were obliged to declare insolvency.
However, these measures have been phased out in stages, which has removed the financial safety blanket propping up some failing companies that struggled to recover from the economic shock of the pandemic.
Financial losses resulting from bankruptcies in 2021 amounted to CHF4.2 billion ($4.5 billion), which is higher than the CHF3.3 billion average in the previous 17 years.
Some CHF1.7 billion resulted from three unusually large bankruptcy cases, the Federal Statistical Office said, without naming the affected parties.
In the first few months of this year, the situation appears to be getting worse. Company bankruptcies increased 40% in January and February compared to the same months in 2021, says the Swiss association of creditors, Creditreform.
Creditreform says it expects company insolvencies to increase by more than a quarter for the whole of 2022 compared to 2021.
Popular Stories
More
Swiss Politics
Why cars still reign supreme in ‘rail-nation’ Switzerland
Swiss central banker wants to boost equity to head off risks
This content was published on
Equity levels at the Swiss National Bank (SNB) are much too low for the risks its large balance sheet poses, according to Martin Schlegel.
Beer sales in Switzerland watered down by bad weather
This content was published on
The past brewing year fell through in Switzerland, partly due to the bad weather. Beer sales shrank again. For the first time, per capita consumption fell below the 50 liter mark.
Compensation for Syrian after pregnant wife denied help on Swiss train
This content was published on
Switzerland’s Federal Court has partially upheld the appeal of a Syrian family being deported from Switzerland to Italy in 2014. The man now also receives compensation.
Swiss-EU negotiations: Cassis to meet Sefcovic in Bern
This content was published on
Swiss Foreign Minister Ignazio Cassis will meet the Vice-President of the EU Commission, Maros Sefcovic, in Bern on Wednesday.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Covid bankruptcies: Swiss liquidators ramp up hiring
This content was published on
As employers struggle to stay afloat during the Covid-19 pandemic, one employer has launched a recruitment drive: the Zurich liquidation service.
Bankruptcy laws eased for Covid-affected companies
This content was published on
The measures have been announced to save firms going under with a resultant loss of jobs. Non-essential businesses have been forced to close their doors for several weeks as part of a government plan to combat the coronavirus pandemic. The Swiss state has provided more than CHF60 billion in the form of bridging loans, paying…
This content was published on
Tourism in Switzerland is expanding and stagnating at the same time. In the last 30 years the stock of holiday homes has increased, while the number of hotels has fallen. However the number of guest rooms per hotel and of the number of beds overall has grown. This is not a bad development in itself but…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.