Construction companies in debt trap
Many construction companies might go bankrupt in the medium term in Hungary, credit insurer Euler Hermes predicts. The whole branch suffers from late payments and companies cannot pay each other due to their own outstanding receivables, while price competition is too harsh. Last year 1,250 construction firms went bankrupt or winded up activities. But 82,346 companies survived, despite of the fact that there are only 8,000 construction firms in Austria, which boasts a larger construction market. Experts expect a similar number in the medium term in Hungary, too. (VG)
