Bankruptcies

Regulation (EU) 2019/2152 of the European Parliament and of the Council of November 27, 2019 on European business statistics obliges Statistics Austria to continuously compile quarterly data on bankruptcies of legal units from the first quarter of 2021 onwards. Due to the Corona crisis and the large user demand on this data, Statistics Austria decided to produce and to publish results starting already from reference year 2019. The results are published 40 days after the end of the respective reporting quarter.

According to preliminary figures from Statistics Austria, there were 580 bankruptcies in the second quarter of 2021. That is 25.2% less than in the same period of the previous year, in which 775 bankruptcies were recorded. There were 2 997 bankruptcies for 2020 as a whole. That is 38.7% less than in the 2019 reporting year. For the first half of 2020, the total number of bankruptcies of 1 893 is significantly higher than that for the first half of 2021 (1 065).

However, this decline does not reflect the current economic situation - it is largely due to the suspension of the obligation to file for bankruptcy due to the current corona pandemic. The obligation to file for bankruptcy was suspended for the period from March 2020 to June 2021.

Methodology

The data on the bankruptcies are based on the judicial bankruptcy proceedings. The initiation of bankruptcy proceedings of a legal unit in accordance with the Bankruptcy Code - IO, RGBl. No. 337/1914. These bankruptcy proceedings are: bankruptcy opening proceedings, bankruptcy proceedings, restructuring proceedings with and without self-administration.

The statistic is created in several steps:

(1) The main source of data is the Judicial Edict File. The data recorded there is made available by the Federal Ministry of Justice,

(2) stored in the statistical business register (URS) and the administrative register (URV) and

(3) Enriched with further characteristics.

(4) Changes of procedure are not counted, i.e. there are no double counting of legal units in the case of a change of procedure.

(5) Units that have opened bankruptcy proceedings several times in a period of 12 months are adjusted and only the first bankruptcy proceedings are counted.

(6) Subsequent distributions are excluded.

(7) The statistics are compiled every quarter from the 2019 reporting year and are evaluated according to aggregated economic sectors (ÖNACE 2008).

(8) For units for which ÖNACE is not available, an estimate is made using an ÖNACE distribution based on the new entries in the URS.

Notes: In Austria, there are comparable bankruptcies figures for instance from the KSV1870. Although the data source used is identical, there are slight deviations from the figures published by Statistics Austria. Causes include: different coverage areas or reference times for the analysis or the assignment of the units to economic branches according to ÖNACE 2008.

The data on bankruptcies for the last four quarters of the report are shown as provisional and are revised when a new quarter is published.