Retail and agriculture have entered the danger zone

In the first quarter of 2011 the number of insolvency procedures grew by 27 percent. This rate is higher than forecasted and Coface Hungary’s opinion is that it is because the trend reversal the domestic economy hoped for only happened in the sectors producing for export. The highest number of insolvency procedures occurred in the building/construction sector and in wholesale/retail. This year brings numerous new challenges as several sectors are highly influenced by the increase in base material and fuel prices. Agricultural enterprises: those dealing exclusively with animal farming are fighting for survival, especially pig and poultry breeders. The situation of meat processing companies also took a negative turn. Coface Hungary’s managing director Gábor Kárpáti warned that even formerly prospering market players can experience negative change in a short period of time. The solution is involving an independent receivable management company in negotiating late payments with partners