BUSINESSES ARE going bust in Northern Ireland at a faster pace than at any other period over the last 10 years, according to the latest statistics.

Business advisers PricewaterhouseCoopers (PwC) said new business failure statistics show insolvency figures in the first three months of 2009 have jumped year on year by 35 per cent. PwC said a total of 57 companies in the North became insolvent over the period as the number of creditors’ voluntary liquidations soared from five in 2008 to 23 in 2009.

The latest figures come on the back of a separate survey from the Institute of Directors in Northern Ireland, which claims banks have implemented tougher lending conditions in the North.

Joanne Stuart, chairwoman of the IoD in Northern Ireland, believes the survey confirms the widespread impact of the credit crunch on firms in the North.

“Of the 124 businesses covered in the survey, 53 per cent said their bank’s lending conditions were somewhat or much tougher than the start of the year.

“Despite cuts in the official interest rate, 48 per cent of respondents reported the interest they were paying had increased because of a move from Base Rate plus to LIBOR plus. In addition, 64 per cent said that overdraft/loan arrangement fees or operating charges were more expensive.”

PwC has warned that deteriorating business conditions in Northern Ireland are likely to result in further company failures this year.

Last year, business failures hit a 10-year high in the North. A total of 209 companies collapsed, an increase of 27 per cent on 2007 figures.

Garth Calow, a partner in PwC Business Recovery Services, said the situation is becomingly steadily worse in the North. “There is a clear upward trend in local insolvencies.”