Germany Faces Highest Insolvency Rate Ever

The number of German firms declaring insolvency in 2002 has reached a new high. In the first half of 2002, close to 185,500 firms claimed insolvency, a 25-percent increase over the same period last year. In an interview with the "Süddeutsche Zeitung" newspaper, the head of Creditreform -- an international organization that helps protect German firms from bad debts -- firms in the construction, retail and consumer service industries have been the worst effected.