BDI Coface today published payment ethic index for March 2009, which showed an improvement in payments arrears compared with February. The average number of days in arrears for payment fell to nine in March from eleven in February.
BDI attributes the improvement to pressure by suppliers to reduce the number of credit days, as well as efforts to collect debts more quickly because of the credit crunch and the rise in business risk.
The average number of agreed upon payment days remained unchanged in March, at 91.
However, the payment ethic in 13 of the 31 business subsectors examined - 42% - worsened in March, compared with February. The payment ethic was unchanged in additional 19% of business subsectors.
The building inputs manufacturing and wholesales subsector had the greatest average number of days in payments arrears, at 23 days. The food manufacturing and wholesale subsector was in second place, with an average of 21 days in payments arrears. The paper and carton manufacturing and wholesale subsector had the best payments ethic in March.
BDI said that the deterioration in its average weighted business risk index halted in March. The index remained at 6.25 points, the same as in February. However, the March level was worse than the 5.83 points in March 2008.
The chemicals industry continued to be the strongest subsector in March, while the catering subsector continued to be the weakest subsector.
Published by Globes [online], Israel business news - www.globes-online.com - on April 12, 2009
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