The total indebtedness of non-financial enterprises in Bulgaria in 2012, according to preliminary data, comes to 167.69 billion levs, against 163.12 billion levs for 2011. The good news is that the receivables reached 71.181 billion levs, and for the first time the rate of their increase is higher (5.229 billion levs) than the increase in arrears (4.580 billion levs). For the experts of the Institute of Economic Researches at the Bulgarian Academy of Sciences (BAS) this is a clear trend towards recovery of the Bulgarian economy.
The total amount of debts to suppliers increased by about 2 billion levs. In 2012 they reached 52.186 billion levs, against 50.170 billion levs a year earlier. A minimal increase of 285 million levs is reported for duties on commercial loans, and it can be said that it is a result of the increase in GDP. Arrears in taxes to the state increased by more 280 million levs, reaching 3.628 billion levs, against 3.348 billion levs for 2011. Obligations to employees have risen by 43 million levs and have hit 1.981 billion levs.
At the same time a decrease of 1.125 billion levs has been reported in obligations to financial institutions. Banks on their turn have reduced the total volume of loans to firms by 1.181 billion levs – down to 40.174 billion levs.
The results of the survey of the Institute for Economic Researches BAS conducted among 200 Bulgarian private companies showed that shrinking markets are their primary concern and the reason for their debts ( 71.1% ), which in turn turns the sales on leasing (or a kind of rescheduled payment) a normal practice which forms up debt for 74.1% of the companies.
Another conclusion from the study is that some of the company’s indebtedness was a sham and was only reported to cover up or drain VAT. As companies bearing the highest risk have been indicated the ones with up to three years of market history, says Dr. Ivaylo Yankov from BAS. According to him, apart from such speculative and shadowy actions, there are other incentives for inter-company indebtedness. As an example he pointed out that in 36.3 percent of the cases, the executives’ pay was completely tied to the performance of the enterprise and in 18.9 percent this is partly so.
It is worth noting that companies operating in export are much more stable than those that operate on the domestic market, adds Prof. Dr. Garabed Minasyan. According to him, it should be noted that taking on some debt is not a dirty word but it is important how one manages the money from external sources. This conclusion can be drawn for both the corporate finances and the government ones, said Mr. Minasyan.
the BANKER
