In March 2024, 1,024 bankruptcies were registered by the business courts. This is a 3.0% increase compared to February 2024 (994).

Statbel, the Belgian statistical office, also publishes a detailed report with the major developments of the monthly figures on bankruptcies. This report is available here (NL - FR).

The number of bankruptcies registered in March 2024 is higher than in the same month in 2023 (+11.7%) and in 2022 (+11.1%). This is actually the highest value in March in Belgium since 2015 (1,134).

At regional level, the number of bankruptcies increased compared to February 2024 in the Walloon Region (+16.2%) and in the Brussels-Capital Region (+6.4%). The number of bankruptcies registered in March 2024 has also increased compared to March 2023 in the Flemish Region (+8.8%) and in the Walloon Region (+25.6%) and compared to March 2022 with respective increases of 9.0% and 60.9%. This is actually the highest value in March in the Flemish Region since the previous record in 2023 (594 versus 546), while we have to go back to March 2015 to see a higher number of bankruptcies in that month in the Walloon Region (339 versus 280).

Since the beginning of this year, the business courts pronounced 1,726 bankruptcies in the Flemish Region. This value exceeds the previous record registered in 2023 (1,523) by 13.3%.

Furthermore, the number of bankruptcies registered in March 2024 has increased in four economic sectors compared to February 2024. Indeed, this number went from:

• 170 to 216 in accommodation and food service activities (+46), or the highest number since October 2018 (233);
• 205 to 220 in trade (+15), or the highest number of bankruptcies since June 2023 (242);
• 55 to 61 in transportation and storage (+6), where we have to go back to October 2023 to find a higher number (62);
• 158 to 161 in other service activities (+3), or the highest number since October 2023 (185).

Six economic sectors registered a higher number than in March 2023 and March 2022:

• trade where 220 bankruptcies were registered, or the highest number in March since 2019 (230);
• accommodation and food service activities with 216 bankruptcies, where we have to go back to 2017 to see a higher number during that month (220);
• construction with 206 bankruptcies, or the highest number in that month since 2015 (210);
• other service activities where 161 bankruptcies were registered, or the highest number for March since 2020 (164);
• professional, scientific and technical activities with 77 bankruptcies, where we have to go back to 2018 to see a higher number during that month (85);
• information and communication with 32 bankruptcies, or the highest number in that month since 2020 (33).

After three months in 2024, the number of bankruptcies registered in Belgium is a record in three economic sectors:

• construction with 653 bankruptcies, or 19.2% more than in 2014 (548), the previous record;
• transportation and storage where 176 bankruptcies were registered, i.e. a 9.3% increase compared to 2022 (161);
• professional, scientific and technical activities with 228 bankruptcies, or 5.1% more than in 2020 (217).

As regards the number of job losses registered in March 2024, it amounts to 2,387, or a decrease of 1.5% compared to February 2024 (2,424). However, this is an increase of 7.8% compared to March 2023 and of 3.2% compared to March 2022. We have to go back to March 2019 to see a higher number of job losses in Belgium in that month (3,465).

The number of job losses registered in March 2024 increased compared to February 2024 in the Brussels-Capital Region (+83.0%) and in the Walloon Region (+2.9%). In these two regions, this number also increased compared to March 2023 and March 2022. We have to go back to 2019 to see a higher number of job losses in March in the Brussels-Capital Region (549 versus 474) and to 2015 in the Walloon Region (1,370 versus 716).

Finally, the number of job losses registered in March 2024 increased in two economic sectors compared to February 2024. This number went from:

• 278 to 521 in other service activities (+243), where we have to go back to October 2023 to find a higher number (658);
• 414 to 536 in accommodation and food service activities (+122), or the highest number since June 2023 (542).

Five economic sectors registered a higher number of job losses than in March 2023 and March 2022:

• accommodation and food service activities, or the highest number of job losses in March since 2018 (542);
• other service activities with 521 job losses, where we have to go back to 2019 to see a higher number during that month (1,720);
• trade with 462 job losses, or the highest number in that month since 2020 (477);
• construction with 390 job losses, or the highest number of job losses in March since 2017 (390);
• professional, scientific and technical activities with 138 job losses, where we have to go back to 2021 to see an equal number during that month.

In addition to this press release and the supplementary report (NL - FR), Statbel also publishes more detailed monthly figures which can be broken down by municipality, by NACEBEL 2008 class or even dated back to the year 2009. These figures are available on be.STAT via the tab ‘Figures’ of this publication.

When interpreting the figures, account should be taken of the fact that there is a certain delay between the termination of the economic activity and the notification of bankruptcy by the business court. As a result, the economic impact is only reflected in the figures after a certain period of time.

Moreover, because of the Covid-19 crisis, many business courts and registries operated at reduced capacity and limited their activities until 18 May 2020. Furthermore, a Royal Decree leading to the freezing of bankruptcy proceedings before the courts was in force until 17 June 2020, in order to protect the enterprises that were healthy before 18 March 2020 from the effects of the Covid-19 crisis.

Then, on Friday 6 November 2020, the government approved a new moratorium on bankruptcies until 31 January 2021 in order to protect enterprises that were obliged to temporarily close their doors following the ministerial decree published on 1 November 2020 amending the ministerial decree of 28 October 2020 on emergency measures to limit the spread of the coronavirus (Covid-19).

As compensation for the end of this second moratorium, the government implemented a reform based on 3 pillars in order to make the access to the procedure for judicial reorganisation more flexible. First, the procedure was simplified, by no longer requiring enterprises to give immediately 11 documents, but only 3. The other documents can be delivered during the procedure. Second, the procedure no longer requires a publication in the Belgian Official Journal, which allows the mediator to meet with creditors in complete discretion and thus prevent them from demanding the rapid repayment of their claims before an agreement has been reached. Third, the procedure for judicial reorganisation by amicable agreement are encouraged by a tax exemption that was until then only applied to procedures for judicial reorganisation by court order. The provisions relating to the first two pillars of the reform would initially be in force up to and including 30 June 2021, but were extended until 16 July 2022 by the Royal Decree of 24 June 2021 extending Articles 2, 4 and 12 of the law of 21 March 2021 amending Book XX of the Code of Economic Law and the Income Tax Code 1992.

Between these two moratoriums, the tax administration and the NSSO spared, by a de facto moratorium, enterprises by not declaring them bankrupt due to tax and social debts. This system also remained in force after 1 February 2021 before summons resumed from October 2021 for the NSSO and around March 2022 for the tax administration, where summons gradually resumed in several provinces.

Moreover, there is the judicial recess in July and August. Courts remain open during this period but the number of hearings is reduced. This is why our figures on bankruptcies are usually lower during this period.

Finally, many measures have been adopted - at federal, regional and local level - to support enterprises during the Covid-19 crisis. For example, the NSSO granted voluntary payment plans for a maximum duration of 24 months for the payment of all contributions and sums due for the year 2020. At the level of the National Employment Office, the entire temporary unemployment due to the coronavirus (or the conflict in Ukraine) could be considered as temporary unemployment due to force majeure ‘corona’ until 30.06.2022.

Finally, new measures have been adopted until 31 March 2023 to support enterprises during the energy crisis. At the level of the NSSO, enterprises could, among other things, apply for a voluntary payment plan, while energy-intensive enterprises could make use of a special temporary unemployment scheme due to economic reasons for energy-intensive companies.

All these public measures described above have had a moderating impact on the number of bankruptcies declared since March 2020.