Managing Director, Vyacheslav Davydov, commented in the Kommersant the situation with the bankruptcy of citizens in 2020
The number of corporate bankruptcies in 2021 may exceed last year’s figures from one and a half to two times
The number of consumer bankruptcies in Russia continues to increase, and the growth rate is accelerating. According to Fedresource, 119,000 people went bankrupt in 2020, which is by 72.6% more than in 2019. The number of corporate bankruptcies, on the other hand, has been falling since 2017, but the rate of decline accelerated by almost an order of magnitude in 2020.
Lawyers and officials credit this mainly to the moratorium imposed by the government in connection with the pandemic from 6th April 2020. But PCG Managing Director, Vyacheslav Davydov believes that "the moratorium has only stretched the problems over time": "It confirms the rise in overdue debt of more than 90 days, which effectively reflects debtors’ default. As the restrictions are lifted, we will see backlog demand for corporate bankruptcies. Being of much commerce online and the significant shift towards remote working, has already led and will inevitably lead to defaults of those who rent commercial property. A lot of bankruptcies are likely to happen in the hospitality industry, where quarantine restrictions have not been fully lifted, and the number of corporate bankruptcies in 2021 could be one and a half to two times higher than last year.