Bulgaria records highest insolvencies increase in Central, Eastern Europe in 2025
Baku, May 6, AZERTAC
After two years of decline, Bulgaria recorded an increase in corporate insolvencies again in 2025, with their number reaching 830 cases compared to 719 a year earlier, representing an increase of nearly 16%, according to the Bulgarian News Agency (BTA). The most affected sectors are trade, tourism and hospitality, with around 3,200 employees impacted by the bankruptcies, according to the latest analysis by the creditor protection association Creditreform, published here on Tuesday.
Relatively few companies in Bulgaria resort to insolvency proceedings, as these are usually lengthy and complex, the organisation explains.
In a broader regional context, Central and Eastern Europe did not see an overall increase in bankruptcies in 2025. On the contrary, the number of cases decreased by 7.1% to 36,939 compared to 39,746 in 2024, with levels approaching those of 2020. In eight of the twelve countries analysed, a decline in insolvencies was recorded, ranging from 19.4% in Croatia to 0.6% in Poland. An increase was registered in only four countries - in addition to Bulgaria, also in Romania, Slovenia and the Czechia, with the strongest growth recorded in Bulgaria (15.9%) and the Czechia (11.5%).
According to the analysis, the most affected sectors in Central and Eastern Europe are trade and services. Trade accounts for 33.7% of insolvency cases, although down from 35.5% in 2024, while the share of services increased from 31.4% to 32.7%. Approximately one in five bankruptcies is in the construction sector, with significant regional differences observed.
In Western Europe, 2025 recorded the highest number of corporate bankruptcies in more than two decades. According to the analysis, their number reached 197,610, an increase of 4.8% compared to 188,623 cases a year earlier.
“The crisis is not only cyclical but structural. Weak global trade and geopolitical risks are weighing on European companies. At the same time, high energy prices and bureaucracy are limiting their competitiveness,” commented Patrick-Ludwig Hantzsch of Creditreform.
According to Creditreform Österreich Head Gerhard Weinhofer, the level of bankruptcies in Western Europe has already exceeded that seen after the 2008-2009 financial crisis. After strong growth in 2023 and 2024, the pace is beginning to slow, but the trend for 2026 remains uncertain, with a likelihood of a new increase.
The strongest rise in bankruptcies in Western Europe was recorded in Switzerland (35.3%), followed by Greece (24.4%), Finland (12.1%) and Germany (8.8%). In Austria the increase was 4.3%, while countries such as the Netherlands, Ireland and Norway saw a decline.
By sector in Western Europe, the strongest increase was recorded in services (8.7%), followed by manufacturing (3.6%) and trade, including hospitality and food services (3%). In construction, the number of insolvencies remained almost unchanged.
In the United States, the number of corporate bankruptcies in 2025 reached its highest level in five years - 31,810 cases, an increase of 5.3% compared to the previous year. Analysts point to high interest rates and tighter lending conditions as the main factors hindering the recovery of distressed companies.
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