Eastern Europe is heavily influenced by the weak economic conditions in the Eurozone. In particular, countries like Poland, Czech Republic, Slovakia and Hungary, which are nearer to the borders of the Eurozone, are affected by the continued financial constraints experienced by their neighbouring economies, which also puts pressure on their cash flow levels. The increase in long overdue receivables is also contributing to the increase in the value of receivables write offs reported by Eastern European respondents.
Core results:
- 29.4% and 21.6% of the total value of the invoices issued by Eastern European respondents to their domestic and foreign B2B customers respectively are overdue
- B2B invoices in Eastern Europe are more likely to be paid late due to liquidity constraints of domestic (79.6% of respondents) than of foreign customers (53.2%)
- Uncollectable B2B receivables increased markedly over the past year, particularly in relation to export trade
- Around 45% of the respondents in Eastern Europe become concerned when average DSO is 46 days to over 90 days longer than the average credit period extended to B2B customers
- The majority of Eastern European respondents consider falling demand of products and services and maintaining adequate cash flow to be the biggest challenges to the profitability of their businesses this year
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For further information:
Atradius Credit Insurance N.V.
5/22 Pitt Street
Sydney NSW 2000
Phone: +61 (0)2 9201 2389
Fax: +61 (0)2 9201 5224
Website: www.atradius.com
Atradius Credit Insurance N.V.
5/22 Pitt Street
Sydney NSW 2000
Phone: +61 (0)2 9201 2389
Fax: +61 (0)2 9201 5224
Website: www.atradius.com
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