BUSINESS

Greek companies delay payments

DIMITRA MANIFAVA

TAGS: Economy

Among Western European countries, Greece has the highest rate of unpaid debts between companies that are eventually written off, the annual survey on transaction behavior for 2018 by credit insurance company Atradius has revealed.

That phenomenon in Greece, along with the considerable delays in payments, is generating serious problems in the operation of the market, leading to the cancellation of investments in property, output and equipment.

The survey showed an increase in the percentage of obligations between businesses that are considered noncollectible and eventually written off. Their rate grew to 2.8 percent of all obligations this year, from 2.5 percent in 2017. Significant growth has also been recorded in delayed payments, as their rate jumped to 42.8 percent from 38.6 percent last year.

This year is the fourth in a row with an increase in invoices that have not been paid within deadline, even though the conventional payment period in Greece remains quite long: In this country it stands at 52 days, the longest among Western European states, but the delays make the average time of payment stretch to 76 days, or two-and-a-half months.

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