Introduction
The first half of 2025 saw a sharp rise in corporate bankruptcies in the Czech Republic, with 384 commercial companies declared bankrupt—an increase of 12% compared to the same period in 2024. According to an analysis by Crif Czech Credit Bureau, this is the highest figure recorded since 2017, approaching the critical levels seen in 2021. This alarming trend highlights growing instability in the Czech business environment, with Prague at the epicenter of the crisis.
Rise in Bankruptcies and Insolvency Filings
In the first half of 2025, Czech courts registered 384 corporate bankruptcies—almost matching the peak of 2021, when 380 were recorded during the same period. In addition, applications to initiate insolvency proceedings rose by 10%, indicating a widespread deterioration in the financial health of commercial enterprises.
In June alone, 69 bankruptcies occurred—the third-highest monthly figure this year and an increase of 22 cases compared to May. More than half of these were concentrated in Prague.
Causes Behind the Rise in Corporate Bankruptcies
According to credible sources including CRIF Czech Credit Bureau, the current trend of corporate bankruptcies in the Czech Republic has surpassed the average of the past 12 months.
The reasons behind this increase are complex and interconnected:
- Rising Interest Rates and Reduced Access to Credit.
In the post-pandemic period, soaring inflation prompted the Czech National Bank to repeatedly raise interest rates in an effort to curb price growth. This directly impacted the credit system—bank loans became more expensive and less accessible, particularly for small and medium-sized enterprises (SMEs), which were already vulnerable in terms of liquidity. - Inflationary Pressures, affecting both production costs and operational expenses.
According to a CRIF analytical podcast, the international economic context—marked by persistent inflation, rising energy costs, and geopolitical instability—has negatively affected companies’ financial stability.
Conclusion
The increase in corporate bankruptcies in the Czech Republic is a wake-up call for the government, financial institutions, and entrepreneurs. Structural reforms, targeted support for SMEs, and tax incentives appear essential to restore economic stability.
AI generated image.
Sources: https://www.aziendabanca.it/notizie/imprese/credito-alle-imprese-nel-2025-dati-crif, https://www.crif.it/ricerche-e-academy/ricerche/define-banking-next/podcast-credito-imprese-2025, https://it.tradingeconomics.com/czech-republic/interest-rate, https://www.camic.cz/it/news/cresce-nel-primo-semestre-il-numero-dei-fallimenti-aziendali/.
