ADVERTISEMENT

Worsening risk of debt chain

Debt

Shutterstock.com

In the economic environment transformed by the coronavirus epidemic, the risk of worsening debt chain problems and companies becoming insolvent has increased, especially in the areas most affected, according to the Hungarian Chamber of Commerce and Industry (MKIK) Institute (GVI), writes adozona.hu. 

Image by Shutterstock.com

MKIK GVI analyzed the development of late payment and chain debt through the responses of 407 domestic enterprises on the basis of the data of the quarterly business survey of July this year.

According to the announcement, at least one business partner of 65% of businesses paid late in the first half of 2020, and 38% of respondents themselves owed their suppliers at least once during the period under review.

Late payment was most prevalent among companies with less than 100 employees, purely domestically owned companies, and trade and manufacturing, while debt was most common among companies with more than 100 employees and other economic service enterprises, while in construction, the problem of late payment has significantly decreased compared to the previous year, the tax website notes.

ADVERTISEMENT

Rate-setters augur slower decline in CPI in 2022 Analysis

Rate-setters augur slower decline in CPI in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.