Press release: Business can be described as stagnant
Statistical data of Krediidiinfo AS for the second half-year of 2013 representing the payment behaviour of companies in Estonia reveal that the companies’ debts owed both to the state and to business partners have decreased dramatically. The share of high credit risk companies only constitutes 11%. This means that business is rather stagnant and there is no aggressive selling on the market.
The slack prevailing on the market is best described by the unprecedentedly low share of high credit companies (11%), which should remain at 12–15% under regular competition conditions. At the same time, the highest credit risk is still displayed by the accommodation and catering sector, in which every fifth company is in danger of falling into arrears.
The amount of payment defaults i.e. the sums owed by companies to one another decreased in almost all the sectors during the year from a total of 122 million euros to 42 million euros, which stands for 65%. The sectors to experience the most significant decrease in payment defaults were finance and insurance (-90.6%), specialist, research and technology-related activities (-80.3%) and the construction sector (70.5%).
Tax arrears i.e. the sums owed by companies to the state decreased from 74 million euros to 40 million euros, which stands for 45%. The sectors to experience the most significant decrease in tax arrears were accommodation and catering (-68.6%), information and communications (-65.4%) and specialist, research and technology-related activities (-62.9%).
The total number of companies with payment defaults and in tax arrears also equally decreased (-67%) during the year. There are 2,824 companies with payment defaults and 3,986 companies in tax arrears.
Krediidiinfo AS has prepared the statistical report on the basis of the data for the second half of 2013 received from the Credit Register and the Estonian Tax and Customs Board. The sample consists of 68,519 active companies in Estonia.