ECONOMY

Greek firms prolong period for use of operating capital

Greek companies tied down liquid reserves to fund their operations for an average of 30 days in 2004, against 23 days in 2003 and 25 days in 2002, according to a Hellastat survey of more than 25,000 companies across the economic board. The main reason for the longer liquid period, seen in three out of five business sectors, is delays in receiving dues from other companies, made every 129 days in 2004, up from 126 days in 2003 and 118 days in 2002, said Hellastat’s Research and Development director Christos Yiannakopoulos. Short-term bank loans are a key funding source for additional operating requirements, particularly for the bigger firms.