Hundreds of companies collapsing in Estonia: Millions of euros lost

In Estonia, insolvency and bankruptcy cases among businesses and the population have been rising sharply in recent years. This was reported by Signe Viimsalu, head of the country's Insolvency Service, in an official letter to Prime Minister Kristen Michal.

Viimsalu emphasized that the large-scale increase in bankruptcies could have a serious impact not only on the economy but also on social stability and the functioning of state institutions. In her view, this process also poses a threat to the country's internal security.

According to data, in the first six months of 2026, creditors were unable to recover more than 50 million euros due to 126 bankrupt companies that had no assets. For comparison, in 2025, the number of such companies was 192, and the financial damage they caused reached nearly 74 million euros, which is 52 percent higher than the previous year.

Currently, the average unpaid debt of each bankrupt company without assets has reached 400,000 euros. Three years ago, this figure was less than 100,000 euros. Experts note that in many cases, creditors are unable to recover their funds at all.

The consequences of bankruptcy are also affecting the state budget. Specifically, in 2025, the Unemployment Insurance Fund paid more than 1 million euros in compensation to employees of companies without assets. However, current legislation does not allow for the recovery of these funds from company executives.

According to estimates by the Insolvency Service, the volume of hidden bankruptcy in the Estonian business sector has reached approximately 18 billion euros. Signe Viimsalu warns that this situation could lead to increased social inequality and crime, disruption of essential enterprises, weakened financial system stability, increased risk of external influences, and a decline in trust in state institutions.