BERLIN, April 11: According to a statement released on Tuesday by one of Germany's largest insurance companies, Alliance, 17,800 insurance companies are predicted to go bankrupt this year due to the recent financial and banking sector turmoil, as well as the energy crisis in the country. The company also stated that the number of bankruptcies may exceed expectations, but refused to describe it as a "wave of bankruptcy".

The recent turmoil in the banking sector may result in banks hesitating to grant loans, leading to negative consequences for companies' performance and investment opportunities. Furthermore, the rising interest rates in the euro area may make financially weak companies more vulnerable to bankruptcy, and the energy crisis will reduce corporate profits and have an impact on company budgets. Alliance expects the number of bankruptcies to increase by 21% compared to last year. (KUNA)