Bulgarian firms have an 8% rate of overdue liabilities, compared to an EU average of 5%

Bulgarian businesses report record losses from overdue payments so far this year. Delayed contractual receivables exceed 8%, compared to an average of 5% for Europe as a whole, according to an EOS Group/Ipsos Social Research Institute survey among 2,200 companies in 10 European countries. Of this group, Bulgaria is the country with the second highest rate of payments in default. Data shows that only 66% of financial liabilities are paid on time, with the share showing signs of further decline, said Raina Mikova-Todorova at EOS Matrix Ltd. Official figures also reveal that only half of Bulgarian companies check their partners' and customers' solvency. Faced with difficulties in collecting their payments, most firms are slow to contact professionals and collection agencies. EOS Matrix's Svetla Petrova says firms often lack the documents to verify accumulated liabilities such as contracts, invoices, record of proceedings etc. In many cases, the debtor turns out to be in bankruptcy proceedings or to have filed for bankruptcy retroactively, complicating payment collection.

Of the countries surveyed, Romania is the only one with a larger share of receivables written off, with almost 10%. The bottom of the table is occupied jointly by the UK and Germany, each with a bad intercompany debt ratio of 2%.

An overwhelming share of Bulgarian corporate defaults come from industry, followed by the trade and service sectors. Greeks form the largest group of debtors with a bad record, Spain also being in the Top 3.

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