The total number of liquidations increased by 32,6% year-on-year (y/y) to 301 after easing by 0,7% y/y in February 2005 to 296 following a 15,5% y/y decline in January 2005 to 328, Statistics South Africa said on Thursday. The record monthly total of 511 was reached in August 2000.
The increase of 32,6% y/y in the total number of liquidations for March 2005 was due to an increase of 34,8% y/y (from 181 to 244) in voluntary liquidations and 23,9% y/y (from 46 to 57) in compulsory liquidations.
The March rise meant that there was a 12,8% increase in the total number of liquidations for the first quarter of 2005 compared with the previous quarter.
This increase was due to an increase of 20,1% (from 708 to 850) in voluntary liquidations, but this increase was counteracted by a decrease of 18% (from 167
to 137) in compulsory liquidations.
The total number of liquidations in the fourth quarter of 2004 fell by 26,3% from the third quarter of 2004. The decrease of 26,3% in the total number of liquidations for the fourth quarter of 2004 compared with third quarter 2003 was due to a decline of 44,7% (from 190 to 105) in compulsory liquidations and a 21,9% drop (from 798 to 623) in voluntary liquidations.
The total number of liquidations recorded for 2004 was 3 510, a 14,1% decline on the 2003 total of 4 086.
The 14,1% decline was due to a decrease of 34,2% (from 857 to 564) in compulsory liquidations and a drop of 8,8% (from 3,229 to 2, 946) in voluntary liquidations.
The total number of insolvencies for February 2005 decreased by 9,8% y/y to 119 compared with a 25,9% y/y decline in January to only 103, which was the lowest for at least the past six years. The record monthly total was 604 set in August 1999.
The total number of insolvencies for the first two months of 2005 decreased by 8% (from 264 to 243) compared with the first two months of 2004.
The total number of insolvencies fell by 25,9% y/y to only 103, which was the lowest for at least the past six years. The record monthly total was 604 set in August 1999.
The total number of insolvencies recorded for 2004 was 1 697, a 34,3% decline on the 2003 total of 2 584, which in turn was a 14,4% drop on 2002, Statistics South Africa said on Thursday.
The record annual total was 6 013 reached in 1999, so the 2004 total was 71,8% below this.
The reduction in insolvencies is in part due to five cuts in interest rates implemented in 2003 after four hikes in 2002.
On August 12 2004, the South African Reserve Bank announced a 50 basis points cut and on April 14 2005 it announced a further 50 basis points cut. – I-Net Bridge