Why is the number of insolvency proceedings in Galicia tripling?

Javier González, partner in charge of Lener's Vigo office, explains to 'Atlántico' the reasons behind the boom in insolvency proceedings in Galicia, mainly in the provinces of Pontevedra and A Coruña, where there has been a significant increase in the filing of insolvency applications. 

This boom is due to the still prevailing consequences caused by the pandemic, as well as the effects caused by the war in Ukraine and the consequent increase in costs and interest. 

Therefore, Javier explains that for some time several measures were adopted, such as the suspension of the declaration of insolvency, as well as financial aid approved by the Government, although when the term is over, it is time to return this aid. 

Our colleague also points out that this situation is being conditioned by the increase in costs and the financial burden borne by the companies which, as they are unable to pass it on to their customers, lead them to request insolvency proceedings. 

ICO aid continues to be a constant in this discussion. Javier assures that there are still doubts about the behavior of the financial entities and the ICO in the event that the beneficiary companies are unable to meet these credits, which raises doubts about the restructuring of such debt. 

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