ECONOMY

Building firms go belly up

One in four construction companies has closed since the 2004 Olympic Games, according to the head of the Association of Construction Firms, Giorgos Vlachos. In its report, to be published shortly, the association makes note of the growing problems the sector has been facing, as there have been serious delays in payments by the state, while in recent months calls for tenders have seemed to be few and far between. Most of the companies that have closed down did so in the last couple of years, when the delays in state payments first emerged and before the problem took on its current explosive dimensions. The situation has even affected the major players on the market, while constructors continue to find banks uninterested in lending them funds. Therefore, estimates for this year are quite negative with further concentration expected in the sector, while the draft law regarding new tenders that had been planned for May or June is not expected before September.