Bloomberg News

Iceland Corporate Failures Rose 61% in 2011 in Crisis Aftermath

January 26, 2012

Jan. 26 (Bloomberg) -- Iceland’s corporate bankruptcies rose 60.7 percent last year as the fallout of the island’s 2008 banking crisis continues to take its toll.

A total of 1,578 companies were declared bankrupt by Icelandic courts from January through December last year, compared with 982 bankruptcies in 2010, Reykjavik-based Statistics Iceland said today in a statement on its website. Most bankruptcies were in the construction industry, it said.

At the same time, registrations of new limited-liability corporations rose 4.5 percent in the period to 1,700, the office said.

“The huge number of company failures indicates that the economy is still severely impaired after the crisis,” Ingolfur Bender, an economist at Islandsbanki hf, said in a note to clients before the data were published. “It also bears witness to the extensive financial restructuring currently under way.”

--Editors: Tasneem Brogger, Jonas Bergman.

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik valdimarsson@bloomberg.net.

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net


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