Business bankruptcies in Spain rise 21pc

More than 1600 Spanish firms declared insolvency in the first quarter, a rise of 21 per cent over the same period in 2011, PricewaterhouseCoopers says in a report based on official data.

Adding in personal bankruptcies brings the figure to 1958, the highest quarterly total in eight years.

The regions of Madrid, Valencia and Catalonia, which includes Barcelona, led Spain in bankruptcies in the first quarter, while the largest annual increase - 93 per cent - was in the northwestern region of Galicia.

The construction, real estate and service sectors accounted for nearly 60 per cent of business insolvencies in the January-March period, PwC said on Monday.

Most of the failing firms had assets of less than 2 million euros ($2.6 million). Read More