Construction companies’ debts soar to over PLN 4.7bn

The total debt of the construction industry increased by PLN 246m (€57.21m; 5.5%) to over PLN 4.7bn (€1.09bn) in H1 2018, according to a report prepared by BIG InfoMonitor and BIK. In the period under review, the number of companies which had difficulty paying invoices or repaying loan instalments grew by more than 5,500. In total, there are 40,900 of the affected companies, which account for 5.9% of all construction companies, whether active, suspended or closed, registered in the KRS and CEIDG databases.

The companies’ debts increased in H1 2018 mostly driven by small companies, which are usually run by natural persons, and civil partnerships. The largest percentage of unreliable payers are companies building roads, bridges, tram track beds and pipelines, i.e. infrastructure which is usually constructed as part of public procurement projects.

Most indebted companies are located in the Mazowieckie voiovodship where almost 6,000 companies have debts in excess of PLN 873.9m (€203.23m), but the Slaskie voivodship is the leader in terms of percentage, with 7.9%.