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4.3.2 Corporate profits dynamics
Russian corporate profits surged in November to a cumulative total of RUB10,283 trillion in November, the last data available after a month-on-month increase of RUB1,858 trillion increase in November.
That was the best result in five years for the month as the economy bounced back from the crash earlier in the year, but still left the cumulative total lagging 2018 and 2019, although it was enough to surpass 2016 and 2017. Previously cumulative profits were the lowest in five years.
Experts from GRM consulting company forecast an increase in the number of applications for declaring individuals bankrupt to 260,000 in 2021, which is 65% more than in 2020, the company’s press service told TASS.
“In 2021, GRM analysts predict that the 2020 trends will continue: an increase in the total number of applications within 65% against the level of 2020; maintaining the conversion rate of submitted applications to ongoing procedures at a rate of 94%; an increase in debt restructuring procedures to 10% of the total submitted applications,” GRM reported.
In 2020, the number of applications for recognizing individuals as bankrupt exceeded 157,000, which is almost 64% more than in 2019.
Starting in July 2020, GRM began to record at least 15,000 filed bankruptcy applications every month. The climax came in December last year, when creditors filed 19,400 such applications.
46 RUSSIA Country Report February 2021 www.intellinews.com
