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Company Bankruptcies in 2011
by diane
8 Feb 2012 at 8:00am
February 8th, 2012
The number of companies and individuals who filed for bankruptcy in 2011 grew by 13.3% compared with 2010, reaching a figure of 6,755.
ABC News reported that the number of insolvent companies rose 16.7% in 2011, reaching 5,821, while the number of individuals who were declared insolvent fell by 3.9%, and stood at 934.
In the fourth quarter of 2011 there were 1,692 proceedings registered, representing an increase of 8.8% over the same period in 2010, and a growth of 13.6% compared with the previous quarter of 2011.
Returning to the annual data, 6,472 of the proceedings were voluntary, 14.5% more than last year, and the other 283 involuntary, 9.3% less than in 2010.
By types of companies filing for bankruptcy, the number of individuals with business activity fell 11.1%, while proceedings for limited companies increased by 18.2% and corporations by 14.1%.
By region, Catalonia recorded the highest number of bankruptcy proceedings, with 1,507, followed by Valencia, with 995, Madrid, with 849, and Andalusia, with 784. These four autonomous regions accounted for 61.2% of the total.
In contrast, the communities with fewest debt proceedings were La Rioja, with 42, and Cantabria, with 60.
According to the National Statistic Institute?s report, 65.4% of companies declared bankrupt in 2011 were in the lower turnover bracket (less than two million euros), a level that covered all of the individuals with business activity, 68.3% of Limited Liability Companies and 44.1% of Corporations.
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Spain?s Public Debt Stable at 66% of GDP
by diane
7 Feb 2012 at 8:00am
February 7th, 2012
Spain?s public debt remained unchanged at 66.0% of gross domestic product (GDP), equivalent to 706,340 million euros, according to eurozone data for the third quarter of 2011 released yesterday by Eurostat, the European Union statistics office.
The eurozone debt declined by three-tenths in the third quarter of 2011 to 87.4% of GDP, while in the whole of the EU the debt rose five-tenths to stand at 82.2% of GDP.
In annual terms, public debt increased in both the eurozone (83.2% to 87.4%) and the European Union (EU) in general (78.5% to 82.2%), according the first quarterly data on sovereign debt issued by Eurostat.
Specifically, the 17 countries in the eurozone accumulated a debt of 8.2 billion euros in the third quarter, of which 2.8% corresponded to currency and deposits, 79.3% to securities, 18% to loans and 0.8% to intergovernmental loans relating to the financial crisis.
Intergovernmental loans refer to the financial aid the eurozone and the EU have provided to other member countries, and Eurostat included this in its statistics in order to obtain a more complete picture of the evolution of public debt in the 17 eurozone countries and also in the EU-27.
El Economista reported that in the whole of the EU, the public debt amounted to 10.3 billion euros to September 2011, of which 3.8% is attributed to currencies and deposits, 79.7% to securities, 15.8% to loans and 0.6% to intergovernmental loans.
The situation in Spain
In Spain, government debt between the second and third quarter of 2011 remained unchanged at 66.0% of GDP, equivalent to 706,340 million euros.
However, compared to the third quarter of 2010, the Spanish debt increased by 7.3 percentage points.
Broken down, 54.7% of Spanish public debt corresponded to securities, 11.0% to loans, 0.7% for intergovernmental loans and 0.4% to currencies and deposits.
Most indebted countries
The highest percentages of public debt per GDP were recorded late in the third quarter of 2011 in Greece (159.1%), Italy (119.6%), Portugal (110.1%) and Ireland (104.9%), all ? with the exception of Italy ? rescued member countries. The lowest rates were observed in Estonia (6.1%), Bulgaria (15.0%) and Luxembourg (18.5% of GDP).
Compared to the second quarter of 2011, a total of 14 member countries recorded an increase of its debt, while 13 experienced a decline.
The largest increases were registered in Hungary (4.8%), Greece (4.4%) and Portugal (3.6%). In contrast, the steepest declines occurred in Italy and Malta (both with 1.6%) and Romania (1.0%).
Year-on-year, 20 member states experienced an increase in debt per GDP and 7 a fall.
The largest increases occurred in Greece (20.3%), Portugal (18.9%) and Ireland (16.5%), while reductions were recorded in Sweden (1.6%), Luxembourg (1.4%) and Bulgaria (0.9%).
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World Bank: ?The measures taken in Europe only buy time?
by diane
6 Feb 2012 at 8:00am
February 6th, 2012
In his speech at the Herzliya Conference held in Israel last week, the President of the World Bank, Robert B. Zoellick, warned that ?the measures adopted in Europe for now only buy time. We are facing one of the key moments in the future of European construction?.
Zoellick addressed the economic crisis gripping the World and Europe in particular, without sparing criticism, saying ?the leaders of the developing countries are viewing Europe?s inability to find a solution with embarrassment which is turning into scorn,? in a talk being followed by experts, economists and politicians from various countries.
The World Bank President said that debt and the banking sector are major challenges for Europe and pointed to the political class as being the main problem, which in his opinion, is failing to carry out reforms when we are already in the fourth year of crisis. ?In principle, the World Bank and the International Monetary Fund anticipate a downturn in economic growth this year. One of the main dangers is the eurozone,? he said, at the same time calling for European leaders not to fall into ?protectionism and populism?.
After praising the technology and innovation in Israel, Zoellick also outlined the positive aspects in Europe: ?The actions the European Central Bank are taking are significant .(?) It is important that there is a government in Italy and I hope that Spain also is taking difficult decisions. I hope they are good measures. If the Italian Prime Minister, Mario Monti, does not succeed with his reforms, it will be a serious problem for Europe?.
El Mundo reported that Zoellick also praised Chancellor Angela Merkel but demanded that ?Germany step forward and indicate measures that they will carry out if other countries take actions on the right track.?
According to the World Bank President, in Germany there is a political sensitivity and effort that has lasted more than 60 years to avoid being seen as the leading European country, but ?now it is the only one who can play this role.? ?This is one of the ironies of history. The Germans, who have always demonstrated their role as a committed partner in Europe, must now take the lead if Europe wants to be saved,? he added.
Asked about the differences between his country and the EU, he said, ?In the United States there are still serious problems but they are less immediate in comparison to those being suffered in Europe.?
To what extent should the State intervene in the economy? ?The countries play a large role in the economy but we must remember that they are not as fast and innovative as the private sector. They have difficulty adapting to the changes,? Zoellick responded.
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