Neither geopolitical events – the war in Ukraine, nor the sanctions that followed it, nor high inflation and significantly increased interest rates to contain it, which caused stagnation in the economy, had a significant impact on the number of insolvency cases. There are still fewer of them than there were during "covid". This is reported by LETA with reference to Dienas Bizness. According to Lursoft data, 596 insolvency cases were initiated in the first seven months of 2024, while in the same period in 2023 – 585, and in 2022 – 593, which is significantly less than during the Covid-19 pandemic – 717 in 2021 and 735 in 2020. Although the number of insolvency cases of individuals increased to 176 in the first seven months of 2024 compared to 159 in the same period last year, it was significantly higher in 2020 – 203. The number of insolvency cases of legal entities has remained virtually unchanged over the past three years. "Judging by the data on insolvency proceedings, they are almost at their lowest point, and I hope that they will remain there in the future," says Elīna Egle, Chairperson of the Board of the Latvian Business Association. She hopes that the overall situation in the country will improve as the economy recovers. "Sales markets are stabilising, additional resources for development are emerging from EU funds, the financial sector and private investors. I hope that the insolvency system in Latvia is orderly and transparent, and disasters such as artificially induced insolvency proceedings leading to asset stripping are a thing of the past," says Egle.
