http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.14Change: -0.15
R/$ = 12.05Change: -0.20
Au 1200.03 $/ozChange: -6.12
Pt 1139.50 $/ozChange: -16.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 29, 2012

Economist warns that global corporate insolvencies could rise

Back
Bankia|Euler Hermes|Asia|Europe|Spain|United Kingdom|United States|Credit Insurance|Luke Doig
||||
bankia|euler-hermes|asia|europe|spain|united-kingdom|united-states|credit-insurance|luke-doig
© Reuse this

The ongoing deterioration in the economic outlook for Europe has impelled European credit insurance company Euler Hermes to revise its 2012 outlook for global corporate insolvencies from an earlier expectation of a 5% fall to a 3% rise.

Of concern, says insurer Credit Guarantee senior economist Luke Doig, is that global company closures remain at elevated levels following the 64% cumulative rise seen in 2008 and 2009, when bankrupt- cies in the US rose accumulatively by 210% from 2007 to 2009, and those in the eurozone by 90% between 2008 and 2009. Only Asia remained relatively unscathed.

“I am uneasy about the outlook for the European economy this year and potentially into 2013 as well as the resultant impact on corporate health, implying rising payment defaults and global insolvencies,” Doig notes.

Banks are currently under pressure to restore strength to their balance sheets, and growth forecasts are being trimmed across the globe as rising unemployment, poor sentiment and weak demand dampen positive forecasting, with a further pick-up in company closures next year potentially pushing the insolvency index close to record highs.

Doig adds that the challenge for South African exporters is to select specific markets and sectors to ensure a better chance of being paid.

“Moreover, shipping on open terms, given such uncertainty, is foolhardy, especially when one considers the poten- tial contagion for bank failures. Payment protection amid this volatility is para- mount,” he warns.

Meanwhile, Doig says that a systemic break-up of the eurozone cannot be excluded while Spanish banks are scrambling to recapitalise themselves as their borrowing costs soar. With the exception of the nationalisation of Spain’s fourth- largest bank, Bankia, three savings banks, namely Ibercaja, Liberbank and Caja3, are said to be considering a possible merger, which would create Spain’s seventh-biggest lender.

He adds that an additional contributor to the European economic unease is the economic downturn currently experienced in the UK, where retail bankruptcies have recently been reported to have increased by 38% in the first quarter of 2012, compared with the first quarter of 2011.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
More
 
 
Latest News
Updated 1 hour 27 minutes ago Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Updated 2 hours 17 minutes ago French energy company Total is seeking international arbitration over a tax disagreement with Uganda which could further delay crude oil production in the east African country. "Total E&P Uganda confirms that it has filed a request for arbitration before the...
Updated 2 hours 21 minutes ago The Independent Communications Authority of South Africa (Icasa) on Tuesday published the final Radio Frequency Spectrum Assignment Plan (RFSAP) for the International Mobile Telephony (IMT) Roadmap that was gazetted in November. The IMT Roadmap aimed to unlock the...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96