Sixty-five percent of the domestic firms has debt that has expired

The Marketx Group on behalf of Coface Hungary, examined the risk management practices of domestic firm. An increasing number of companies are affected with debts and their own debts are getting more extensive in time and in quantity.

Sixty-five percent of the domestic firms has debt that has expired. One-third of them have more than 50 million HUF. Almost ten percent of the firms do not know what level of debt they have. According to Dercze Zoltán, Country Manager of Coface Hungary, the customer rate affects badly those firms the most, which do not lead a reliable customer registration. A single late payment can jeopardize.the functioning of the small and medium enterprises. Seventy percent of the asked, blamed circledebts and the economic crisis as the reason of the late payments. The majority of the companies are losing attempts to recover the debt by own force, less than one third turnes to a claims handling company. The deterioration of payment morals and increasing bankruptcy ratio is expected throughout the Central and Eastern European region in 2009.