Press release: The number of insolvent enterprises has more than doubled in the second half of the year 2008

The number of insolvent enterprises has more than doubled in the second half of the year 2008. 

The Krediidiinfo Eesti payment discipline statistics for the second half of the year 2008 shows that within one year the number of insolvent enterprises has grown by 111% or 1959 enterprises. 

According to the insolvency register’s data the amount of delayed payments owed by the Estonian most actively operating enterprises (app. 52 000) reached 1.8 billion Estonian kroons in the second half of the year 2008, and that of tax arrears 1,7 billion Estonian kroons, divided between 3 729 and 8 660 enterprises accordingly. 

The enterprises operating in the following economy sectors have experienced the largest growth in insolvency throughout the year: construction (132%), and transportation and warehousing (118%) sectors. The number of enterprises experiencing difficulties in paying their debt to partners has least of all grown in the sectors of water supply (50%) and agriculture (77%). The number of enterprises with tax arrears has most of all grown in the sectors of transportation and warehousing (36%), real estate (35%), accommodation and catering (35%) and the least growth of tax arrears has been seen in the sectors of insurance and finance (10%) and agriculture (20%). 

The biggest growth in the number of insolvent enterprises has been seen in Hiiumaa (217%), Pärnumaa (181%), Läänemaa (163%) and Jõgevamaa (40%). The percentage of enterprises with tax arrears has most of all grown in Järvamaa (68%), Jõgevamaa (65%), Hiiumaa (43%) and the least of all growth has been seen in Valgamaa (6%). 

According to statistical data, the growth both in insolvency and tax arrears have been experiencing micro and small enterprises with less than 49 employees (240% and over 60% accordingly). The situation is better with bigger enterprises employing 250 or more people; however the number of insolvency and tax arrears has also grown amongst them (75% and 7% accordingly). 

In growing credit risks, in order to prevent liquidity problems, it is advisable to perform customer monitoring (esp. regular customers) and be abreast of partners’ paying capacity, as debts adhere to the principle that if there are some, there will come more. 

AS Creditinfo Eesti - Narva mnt 5, 10117 Tallinn, Estonia
+372 665 9600 (9:00-17:00) info@creditinfo.ee
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