Starting from 29 September, Krediidiinfo terminates the credit limits of the companies which have not yet submitted their annual reports. Termination of credit limits may affect up to 3,674 companies. 

The total number of companies which are yet to submit their annual reports for the financial year of 2008 to the commercial register is approximately 8,000, of which more than a half has a high credit risk. The termination of credit limits concerns the remaining 3,674 companies whose credit risk has been low so far. 

The due date for most companies to submit their annual reports was 30 June. Termination of credit limits does not concern new companies or the ones whose financial year does not match the calendar year. 

Termination of credit as promptly as possible is a necessary measure, as the credit risk becomes impossible to assess in contingent economy in case the base data are outdated. The experience of Krediidiinfo indicates that the publication of information is delayed mainly in order to conceal weak business results. 

Krediidiinfo calculates the recommended credit limits for all actively operating Estonian companies. The credit limits are calculated based on the main economic and financial indicators and ratios. The calculation also takes into account the available information about the company’s business activities, areas of activity, basic indicators and payment behaviour, including the debt behaviour of members of the company’s management board.

The recommended credit limits of Krediidiinfo are used by numerous companies (for example telecommunication, banks, leasing companies, etc.) for determining their individual terms of credit.