In January 2024, 942 bankruptcies were registered by the business courts. This is a 2.7% increase compared to December 2023 (917).
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 January 2024 is higher than in the same month in 2023 (+17.9%) and in 2022 (+45.6%). In fact, we have to go back to January 2014 to see a higher number of bankruptcies in Belgium in that month (1,014).
At regional level, the number of bankruptcies has increased compared to December 2023 in the Brussels-Capital Region only (+42.4%). However, this number has increased in each region compared to both January 2023 and January 2022. In the Flemish region, it is actually the highest number of bankruptcies registered in January since 2013 (532 vs 520), while we have to go back to January 2020 to see a higher number of bankruptcies in that month in the Walloon Region (255 vs 224) and in the Brussels-Capital Region (233 vs 198).
Furthermore, the number of bankruptcies registered in January 2024 has increased in six economic sectors compared to December 2023. Three of these economic sectors also registered a higher number than in January 2023 and January 2022:
- wholesale and retail trade with 209 bankruptcies, or the highest number since October 2023 (211);
- other service activities, where 152 bankruptcies were registered, or the highest number since November 2023 (155);
- manufacturing, energy with 44 bankruptcies, where we have to go back to November 2023 to see a higher number (49).
As regards the number of job losses registered in January 2024, it amounts to 2,773, i.e. an increase of 33.5% compared to December 2023 (2,077). However, this is a decrease of 29.7% compared to January 2023, but an increase of 64.1% compared to January 2022.
The number of job losses registered in January 2024 is higher than in December 2023 in each region. Although the number of job losses has decreased compared to January 2023 in the Flemish Region (-47.0%), it has increased in the Brussels-Capital Region (+38.9%) and in the Walloon Region (+20.4%). We have to go back to October 2023 to see a higher number of job losses in the Walloon Region (869 vs 674) and in June 2021 for the Brussels-Capital Region (652 vs 493).
Finally, the number of job losses registered in January 2024 increased in seven economic sectors compared to December 2023. Five of these economic sectors also registered a higher number than in January 2023 and January 2022:
- construction with 488 job losses, or the highest number since September 2022 (597);
- accommodation and food service activities, with 487 job losses, where we have to go back to October 2023 to see a higher number (535);
- manufacturing, energy with 420 job losses, or the highest number since February 2020 (571);
- other service activities with 399 job losses, or the highest number since November 2023 (412);
- information and communication, with 54 job losses, where we have to go back to November 2023 to see a higher number (59).
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.