Businesses: The CPME expects an increase in insolvencies in the coming months – 15/06/2022 at 09:44

The President of the CPME François Asselin. (AFP / ERIC PIERMONT)

The Banque de France, for its part, is due to publish new figures this Wednesday about the bankruptcies of French companies in May.

A “normal” phenomenon. The chairman of the CPME François Asselin said on Tuesday 14 June that the number of bankruptcies will increase in the coming months. The indicator navigates to:

a very low level

since the Covid-19 pandemic.

With 30,915 failures registered between May 2021 and April 2022 by the Banque de France, “we are in

a completely paradoxical situation,

said the head of the employers’ organization at a meeting in Paris organized by the Association of Journalists of Small and Medium Enterprises (AJPME).

Despite more than two years of health crisis and the war that has raged in Ukraine since late February, business failures persist

well under 50,000,

with which the indicator was familiar in early 2020, before the pandemic. With the gradual disappearance of the support systems deployed by the state to support companies during the health crisis (Solidarity Fund, loans guaranteed by the state/PGE), “we will have to expect

an increase in claims,

expect François Asselin on Tuesday.

“What’s going to happen,

It’s normal, even if it’s dramatic”

for the concerned business leaders, he tempered. “What we don’t measure is the speed” at which the failure curve will rise again. “If at the end of all this we have a loss ratio that stabilizes around 50 to 60,000 companies, frankly (…), we will have a damn good deal with these successive crises,” concluded François Asselin.

No particular warning regarding the solvency of French companies

According to data from the Banque de France, corporate failures

a little higher every month

since February.

But, “despite the questions related to the Ukrainian crisis, there is no”

no specific warning”

As for the solvency of French companies, the credit intermediary at the Banque de France, Frédéric Visnovsky, assured Tuesday.

The first refunds from the PGEs “went correctly” and the system should not generate more than

4.5 billion euros in gross losses for the State,

he assured.

“We have no weak signals to say that French companies are in serious trouble,” added Virginie Normand, director of specialized markets at Banque Populaire. Those who experienced financial turmoil “often were”

a bit of trouble before the crisis”

linked to the Covid-19 pandemic, she said. But it is “almost abnormal” that the number of outages remains so low, Virginie Normand warned.

Allianz Trade expects the number of bankruptcies to rise by 10% in 2022

Signs of a changing situation, payment arrears between companies

“start lying down again”

after they nearly reverted to their pre-pandemic levels by the end of 2021, according to feedback collected by the CPME.

In addition, “in April,

86% of our members

said that they could not pass on the increase in their production costs (linked to high inflation, editor’s note) to their selling prices,” emphasized François Asselin. His forecasts of default for France reflect at least those formulated by the insurer Allianz Trade on the global level in mid-May.

In a survey of the financial health of companies around the world, Allianz Trade said it expects

a 10% increase in bankruptcies in 2022

and 14% in 2023. The Banque de France is due to publish new figures this Wednesday about the bankruptcy of French companies in May.

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