The reason why fewer companies have filed for bankruptcy in May of this year than last year is that the financial reorganisation of many of them has been delayed and the banks haven't been pressuring them to file bankruptcy. So says Vilhjálmur Egilsson, CEO of the SA [Confederation of Icelandic Employers].

When looking at the numbers of the Icelandic Statistics office one can see that in May 66 companies were processed for bankruptcy compared to 74 companies in May 2008. Twenty businesses were in construction, and 9 were in wholesale and retail. All in all 413 companies were bankrupt in the first five months of the year but 301 for the same period last year. 

Wilhjálmur says that many companies are technically bankrupt because of their current debt. Their operations were successful though and no one will be better off by stopping them. 

'One can only wait to see what happens when the most difficult cases in the banks start to be resolved. Then there is a danger that they will start to drop out,' he says.

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