Payment periods in - Euler Hermes

Euler Hermes
Annex II
30
▶ Payment defaults in Italy
A close examination of payment defaults of Italian
businesses reveals great disparities between
regions and sectors via two key indicators: the rate
of non-payment and the severity (average
amount) of missed payments.
On the domestic market, the victims of the crisis in
consumption, of international competition (e.g.,
footwear) or of the rise in energy prices (e.g., paper
manufacturing) saw default amounts increase.
Chemicals also saw a rise in these amounts.
Exports, a key element in the Italian economy in 2011,
now are a matter of great concern over the rate of
payment defaults in industry, agriculture, foods,
chemicals and mechanical engineering.
Italy’s strong exports to troubled economies such as
Spain, Greece and Portugal have a considerable
impact on the severity of non-payments. We also see
an increase in the average payment default amount in
the steel, footwear and construction sectors.
Italy -
Domestic market – 2007 to March 2012 trend
(basis, 2007 = 100) (basis, 2007 = 100)
200
150
100
50
0
2008
Rate
Amount
2009
Source: Euler Hermes
2010
2011
Q1 2012*
Regional disparities are increasing in the crisis: the
south and centre of Italy are more exposed to liquidity
problems during economic slowdowns. In the north
of the country, in Piedmont and Liguria, show a
sustained trend of increasing rate (depending on the
production specialisation in these regions, i.e.,
automobiles and naval industries). In central and
southern regions, the trend deteriorates more quickly,
with some diverging trends for certain regions like
Molise and Calabria, which are just improving after a
deep crisis. ▣
Italy -
Export market – 2007 to March 2012 trend
150
120
90
60
30
2008
Rate
Amount
2009
Source: Euler Hermes
2010
Economic Outlook n° 1182 | Special Dossier | Payment periods
2011
Q1 2012*