Euler Hermes: Insolvencies reach 900 in 2017

As many as 900 Polish companies became insolvent in 2017, which is a 12 percent increase y/y, said Euler Hermes in its report. Euler Hermes points out that the biggest problems companies face is lack of financial cushion caused by low margins which in turn prolong the maturity of invoices. In transport sector the number of insolvencies grew by 43 percent due to new international legal regulations, constant problems with transport to the East and “devastating struggle for clients manifested by the need to invest in service quality and, on the other hand, low margins,” the report said. In trade, the biggest problem was the growing dominant position of large retail chains. ”The problematic situation in trade and indirectly in production was only slightly reduced by consumption driven by social programs, mainly Family 500+, but it is not enough for wholesalers and suppliers to increase profitability, I would expect a higher chance of inflation to increase margins for distributors,” member of the Euler Hermes board for risk assessment Tomasz Staru said The largest increase in the number of insolvencies was recorded in Mazowieckie voivodship (by 44 percent y/y) and in Zachodniopomorskie (20 percent).