Swedish bankruptcies increase by 55% in Q1 as rates hurt economy

SWEDISH bankruptcies increased by 55 per cent in the first quarter from a year earlier as interest rates at a 15-year high weigh on construction and spending on services.

Default rates in the biggest Nordic economy have been hitting three-decade highs for the past months, according to data compiled by credit reference company Creditsafe.

In March, 804 companies sought protection from creditors, up 41 per cent from a year earlier and the 20th month of growth from the prior year’s levels, Creditsafe said on Tuesday (Apr 2).

Still, the number of bankruptcies last month was lower than in the first two months of the year.

“The first quarter was worrying and very hard for many entrepreneurs,” managing director Henrik Jacobsson said in a statement.

Although the increase last month was not as dramatic as those in the beginning of the year, it’s difficult to point to any significant silver linings, he said. BLOOMBERG