FINANCIAL AGENCY

JANUARY 21 2007 20:14h

23,000 Companies 12 Billion Kuna in Debt

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The latest Croatian Financial Agency information shows an increase of companies' insolvency on a monthly basis.

At the end of November, 22,771 companies were blocked at the amount of 11.8 billion kuna, which means that 775 more companies had payment problems than at the end of October, when 22,016 were closed at the amount of debt of 11.64 billion kuna.

Insolvency is the inability of a company to pay arrears; namely, a consequence of disharmony between financial resources which the company has at its disposal and the value of debt service liabilities.

Unpaid craftsmen duties 4.4 billion kuna

At the end of 2005 outstanding debts amounted to exactly 11 billion kuna, which means that the increase in the amount at which accounts were blocked during the 11 months of 2006 was 800 million kuna. At the end of 2005 craftsmen arrears amounted to 3.97 billion kuna and by the end of October 2006 rose up to 4.4 billion kuna, the Presscut.hr internet portal writes.