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Worsening risk of debt chain

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. 

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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.