The lowest interest rates in more than 20 years have not significantly curbed company liquidations in South Africa, which for the first four months of 2004 were only six per cent lower than those for the same period last year, according to Mike Truter, chief executive of credit insurer, Credit Guarantee.
Truter says total business failures for the 12 months to April 2004 amounted to 4,008, 8 per cent up on the figure for the 12 months to April 2003. Business failures for 2003 amounted to 4 087, the second highest number of annual business failures on record.
The value of civil debt judgments against companies for the first quarter 2004 soared by 73 per cent to R275m, compared with R158.6m for the first quarter of 2003. Total civil debt judgements, including those against individuals, fell by five per cent.
