Polish construction industry struggling with debt

Polish construction companies’ overdue debts have exceeded PLN 6 bln, rising PLN 409 mln, or 7%, y/y, according to BIG InfoMonitor and BIK. Some 51,500 companies are struggling to meet their obligations, while 150,000 businesses specializing in construction work have suspended operations. Rail and metro contractors account for 11.4% of sector arrears, and road builders for 7.75%. Experts attribute the difficulties to scarce new orders, low contract prices, delayed payments and ineffective adjustments to public contracts. Early signs of recovery are emerging in infrastructure construction, while building construction remains weaker.

Defense industry investment could boost demand for production facilities, but developers’ financial difficulties will not necessarily lower housing prices.

(wnp.pl)