Press release: Number of Companies with Payment Defaults Nearly Tripled in a Year
Statistical data of Krediidiinfo for the first half-year of 2009 representing Estonian companies’ payment behaviour reveals that the number of companies with payment defaults has increased in a year by 168% to 5877 companies. In the same period the number of companies with tax arrears has grown 24% and has reached 16 676.
According to the information of the Credit Register in the first half-year of 2009 the aggregate sum of payment defaults of all the active companies in Estonia (ca 53 000) amounted to 3.4 billion kroons, and tax arrears – to 2.5 million kroons, these figures are divided between 5877 and 16 076 companies respectively.
By industries the number of companies with payment defaults has grown the most in agriculture (242%) and the finance and insurance (225%) sector. The number of companies owing money to their partners has increased the least in the water supply (73%) and the information and telecommunication (131%) sectors. The number of companies with tax arrears has grown the most in the finance and insurance sector (42%), real estate (32%) and entertainment sector (30%), and the least in the professional practice and science sectors (18%) as well as the administrative and support sector (19%).
By counties, the highest rate of growth in the number of companies with payment defaults is witnessed in Järva County (337%), Võru County (276%) and Lääne-Viru County (225%), while the lowest rate is seen in Põlva County. The highest rate of growth in the number of companies with tax arrears is witnessed in Jõgeva County (45%) and in Lääne-Viru County (38%) while the lowest rate of growth is seen in Lääne and Harju Counties (21%).
According to the statistics the impact of the recession has now reached the medium-size and large business sector, where the number of companies with payment defaults has increased 4-fold and 2-fold respectively in a year.
30 per cent of all the active companies represent high credit risk. In certain sectors – construction and hospitality industry (accommodation and catering) – the share of high credit risk companies has exceeded 40 per cent.
In spite of the difficult times in the first half-year nearly 90 per cent of active Estonian companies did not have any arrears before their business partners, and 70 per cent of the companies did not have any tax arrears before the State.