Liquidity threats looming larger Intrum Justitia discovers in new pan-European business poll
May 7, 2012The threat of a huge liquidity crisis across Europe looms large according to Intrum Justitia, Europe’s largest credit management company. A new survey of over 7,000 companies around Europe reveals that 57% of businesses in Europe claim to have problems with liquidity due to late payments, an increase of 10% from last year. There is also a great divide between countries. For example, 96% of the businesses surveyed in Greece claim to have liquidity problems due to late payment compared to only 37% of businesses in Finland. According to Intrum 57% of businesses in Europe claim to have problems with liquidity due to late payments, an increase of 10% from last year. There is also a great divide between countries. 96% of the businesses surveyed in Greece claim to have liquidity problems due to late payment compared to only 37% of businesses in Finland.The scale of the debt is staggering: Written-off debt across Europe has risen by €28 billion over the past 12 months, reaching €340 billion. Europe’s economies show a mixed picture. Germany, Europe’s largest economy, shows considerable strength and sees written-off debt declining to its lowest level since 2008, 2.0%. However, countries struck hard by financial turmoil are found on the other end of the spectrum. Greece, sees its written-off debt surging to 5.9%, an increase of 20% from last year. The situation is just as bad in Bulgaria and Romania. Portugal, Poland and Hungary are showing worrying signs – their written-off debt has increased by 13%, 14% and 17% respectively from last year. We really recommend you go to www.intrum.com and get your hands on the 2012 EPI report…