Despite COVID-19, insolvencies down by 40.2% y/y - Stats SA

Albeit that many people and businesses are undergoing financial hardships as a result of the COVID-19 pandemic, the number of insolvencies decreased by 6.7% between November and January this year.

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JOHANNESBURG - Despite the continued slump in the country’s economy, there were far fewer individuals and companies who could no longer meet their financial obligations to lenders by January as compared to 2020.

Stats SA released the liquidation and insolvency data on Tuesday afternoon, which showed that seasonally adjusted insolvencies decreased by 40.2% year-on-year.

The data on liquidations and insolvencies is meant to measure economic performance and the rate of unpaid debts in the country.

Albeit that many people and businesses are undergoing financial hardships as a result of the COVID-19 pandemic, the number of insolvencies decreased by 6.7% between November and January this year.

The information used for the statistics was collected from notices of the Master of the High Court that appear in the government gazette.

Stats SA also said that there was an increase of about 14 cases of company and close corporation liquidations.

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