Firms write off a tenth of turnover in bad debts
Greek businesses will have to write off non-performing debts adding up to 10.4 percent of their annual turnover as they can no longer expect to collect them. This is the highest rate in the European Union, according to the “European Payment Report 2015” drafted by Swedish collection firm Intrum Justitia.
This high rate, along with the considerable delays seen in payments that are actually made, are having a knock-on effect on the sustainability even of healthy enterprises, as well as their further development and employment capabilities.
In total, Greek companies will have to say goodbye to a total of 289 billion euros in debts that are no longer deemed collectible. The report further found that the biggest debtor in Greece, as in most of the other countries surveyed, is the state. The average time it takes the Greek state to pay its suppliers is 49 days, which is the seventh worst record among the bloc’s members, whereas the average time of payments made between enterprises is 31 days, i.e. the 12th worst in the EU, the survey has shown.
