The debt in the construction sector amounts to over PLN 2.4 billion.
According to the report of the National Debt Register, the debt of the construction industry amounts to more than PLN 2.4 billion. In the first half of 2018, production related to assembly and construction amounted to PLN 39 billion, but only 0.8% of projects were profitable.
In addition to the indebtedness of construction companies, the number of entrepreneurs listed in the National Debt Register has increased. First of all, debt collection companies and securitization funds are waiting for the repayment of receivables (in total PLN 854.56 million). Then banks, leasing and factoring companies as well as insurers (a total of PLN 469.23 million). Trade, industry and construction, on the other hand, amount to PLN 823.23 million in receivables.
According to the President of the National Debt Register, cooperation with unreliable contractors is a simple way to bankruptcy. The construction sector is particularly affected by late payment. At present, large construction companies are paid after 2 months and 6 days, and small and micro-enterprises are paid after about 4 months.
The largest number of restructuring proceedings is conducted for entities from the construction sector. Their share in the second quarter of 2018 was 38%, the highest of all sectors. Large companies decide to restructure. Small companies, in turn, save themselves by exchanging invoices for cash.
Source: next.gazeta.pl/next/7,151003,23780817,huge-debt-bearing-banking-construction and in rural-contractual.html#Z_MTstream