Press release: The number of companies in debt decreases drastically
Estonian companies’ payment behaviour statistics for the second half-year of 2010, compiled by Krediidiinfo AS, indicate a significant decrease in the growth of the number of actively operating companies with payment defaults as well as the owed amounts.
The number of companies with tax arrears, i.e. enterprises owing money to the state, has decreased during the year by 15%, remaining on the level of 6,727 firms. The number of companies with payment defaults, i.e. those owing money to their business partners, has increased by only 2%, amounting to 4,091 companies. Both figures were following a steady trend of growth only a year ago – when the number of companies with tax arrears had increased by 30% and the number of companies with payment defaults by 65%.
Based on the statistics of the Credit Register, the overall amount of payment defaults of all actively operating Estonian companies (approximately 45,088) was 132 million euros (2.1 billion kroons) in the second half of the year 2010, and the overall amount of unpaid taxes was 99 million euros (1.5 billion kroons) in the same period. Actively operating companies carry a total debt of 231 million euros (3.6 billion kroons).
In terms of economic sectors, the number of companies with payment defaults has increased the most in the areas of finance and insurance (42%) as well as science and technology (17%). At the same time, a significant decrease has occurred in the sectors of agriculture (-12%), transport and warehousing (-10%) and industry (-2%). The number of companies with tax arrears has decreased in all economic sectors.
The number of companies with payment defaults increased in only three counties – Hiiumaa (53%), Tartumaa (7%) and Harjumaa (6%). The number of companies with tax arrears, on the other hand, decreased in all counties – the most significant decrease in tax arrears occurred in the counties of Põlvamaa (-30%), Raplamaa (-24%) and Läänemaa (-21%).
Although the share of companies with high credit risk has decreased over the course of the year, approximately a quarter of all actively operating Estonian companies should be paid special attention in credit sales. In certain sectors (accommodation and catering, transport and warehousing, construction), the share of such companies exceeds 30 per cent.