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Estonian companies dare to sell on credit again

22. Jan 2013

Statistical data of Krediidiinfo AS for the second half-year of 2102 representing the payment behavior of active companies in Estonia reveal that the increase in the share of high credit risk companies was conservative, from 12% to 19%. This means that companies dare to sell on credit again and are willing to take more risks. 

Tax arrears i.e. the money owed to the state increased in almost all the sectors of economy and amounted to 74 million euros (+19%). Within the year, tax arrears increased the most in the sectors of finance and insurance (75.4%), service providers (49.4%) and transportation and storage facilities (49.2%). Only two sectors saw the decrease in tax arrears: electrical energy industry (-35%) and real estate operations (-22%). 

Meanwhile, the number of companies with tax arrears displayed a moderate growth of 3.9% after decreasing for two previous years in a row. In the second half of the last year, the number of companies owing money to the state amounted to 5,950, which is 225 more in comparison with 2011, and almost half of the new companies in arrears (103) operated in the construction sector. 

The sum of payment defaults i.e. the money owed to business partner increased by 11.6% within the year and amounted to a total of 122 million euros. The sectors that saw the largest increase in debts to partners were information and communications (48.8%) and real estate operations (30.2%). 

At the same time, the total number of companies with payment defaults remained almost the same compared to the previous year and amounted to 4,234, having decreased by 24 (-0.6%). As far as the distribution by sectors is concerned, the sphere of real estate operations saw the record decrease in the number of companies with payment defaults (-11%). 

These statistical data show that companies dare to sell more on credit in comparison with the previous periods, which implies taking more risks. 

The statistics has used the data of active Estonian companies (69,325).