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Norway: building companies are becoming bankrupt

9 April 2008

This year more than 140 Norwegian building companies have submitted applications for bankruptcy. It is on 30 % more, than the year before.
The most part of companies declares the financial inconsistency because of inability or unavailability of clients to pay under accounts.
According to one of the similar companies owners, everything, that they have earned during the period of stability, “was eaten” by a rise in prices and increase in salaries of workers.
Besides, recession of sales volumes of new buildings, which makes from 20 % up to 30 %, has been noted in the country. The quantity of new building projects is decreasing. At last, rates of a rise in prices in the primary and secondary real estate markets were also slowed down.
In aggregate it can testify to the fast termination of boom in the real estate market of the country.


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