Bankruptcies: Companies caught up in the crisis

Bankruptcies: Companies caught up in the crisis
Bankruptcies: Companies caught up in the crisis

thursday, april 1, 2021 at 13:52
Par malika mojahid
Casablanca – While many companies have managed to “escape” as best they can from filing for bankruptcy at the end of the past year, some were caught up at the end of March to join the ranks of those who shut down .

After a surprise drop in business failures in Morocco in 2020, 2,694 companies went bankrupt at the end of March 2021, or 15% more compared to the same period a year earlier, according to Inforisk, a Moroccan specialist in business intelligence.

“This situation is mainly due to a catch-up effect. The ‘stock’ of procedures in commercial courts had to be caught up and the number of failures started to increase again ”, explained Amine Diouri, director of studies and communication at Inforisk D&B, in an interview with MAP.

According to him, the probability that the impact of the crisis on businesses will accelerate in the coming months is very high. “With the end of financial support to companies, a minimum increase of 65% in the number of insolvencies is expected by the end of June,” said Mr. Diouri.

And to maintain that the lack of visibility on the evolution of activity in 2021, whether on the local market or on foreign markets is also a determining factor in resisting the crisis.

“A sample analysis of companies operating in the tourism sector demonstrates the pessimism of these operators who are considering a drop in activity, especially with the closure of borders with several countries,” he said.

By sector, Mr. Diouri notes that trade, construction and public works (BTP) and real estate are the most affected, noting that industries such as hotels / restaurants, travel agencies and travel services Car rentals are also not spared.

By structure, very small businesses (VSEs) are the most exposed because they are the most fragile. “99% of TPEs fail in normal times, this same proportion is maintained in this time of crisis linked to the coronavirus pandemic,” said Mr. Diouri, noting that TPEs face several difficulties mainly related to the access to financing and increased payment terms.

For him, the only chance for companies is to resume normal activity, which depends on the national and international vaccination campaign.

For his part, Driss Effina, economist, noted that the problem of business failures does not date from yesterday and does not depend on the crisis.

“Many companies had structural problems even before the covid-19 crisis,” Effina said in a statement to MAP, noting that companies, which indeed suffered problems as a result of the decline in activity their sectors and demand during this unprecedented crisis, must be supported to survive, especially those operating in the tourism sector.

Recalling the system put in place by the government during the crisis, Mr. Effina, who is also president of the Independent Center for Strategic Analysis, considered that treatment by sector according to its nature is necessary, especially since there are sectors that have won from the crisis.

“You have to be rational and deal with urgent cases that have suffered difficulties during the crisis due to Covid-19,” he said.

As for the recovery, Mr. Effina noted that certain indicators show an overall recovery in activity without returning to pre-crisis levels, but as long as there are restrictions at the international level, the recovery will remain limited.

It should be recalled that the Economic Watch Committee (CVE) has taken a series of measures in favor of companies affected by this pandemic, in particular small and medium-sized enterprises (SMEs) and VSEs to provide the necessary support to the national economy.

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