More than 18 months after the global recession triggered by the COVID-19 pandemic started, the economic recovery continues. This trend owes much to progress in the vaccine rollout over the summer, particularly in advanced economies. In turn, this is spurring a rebound in consumption of high-contact services. The situation remains heterogeneous in emerging economies: this rebound is benefitting export-oriented countries, while service-dependent economies continue lagging.
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As it releases its latest quarterly risk Barometer, and its annual Country & Sector Risk Handbook, Coface, a leader in credit insurance, highlights an uneven recovery across countries, sectors of activity, and income levels. Although the performance of China and other Asian economies is boosting global growth, the main mature economies will not return to their pre-crisis GDP levels this year. This rise in inequality, along with public dissatisfaction with the government's handling of the pandemic in many countries, is conducive to the emergence of more frequent potential protests and violence this year.Read More
Turnover: €1,451m, down by -0.6% at constant FX and perimeter
Trade Credit Insurance decreasing by -0.8% at constant scope and FX
Client retention reaches new record levels. New business increasing to €138m
Improving pricing conditions confirmed and lower client activity continues
Following the change in the shareholder base and the arrival of Arch Capital Group Ltd. (Arch) - (NASDAQ: ACGL) - in Coface's capital, COFACE SA's Board of Directors is evolving. Bernardo Sanchez Incera has been appointed Chairman of the Board of Directors.
The transaction between Natixis and Arch for the sale of a stake in Coface's capital, which was announced on 25 February 2020, has received all the necessary approvals for its closing. As a result, Arch now holds 44.8m shares of Coface, representing 29.5% of the company's capital.
Coface Study - Dairy and Cheese Manufacturing Sector: positive evolution of revenues in 2019, with a 5% increase compared to previous year
A new study conducted by Coface Romania on the sector of "Dairy and Cheese Manufacturing” (NACE 1051) indicates a positive evolution of revenues in 2019, which increased with approximately 5% compared to 2018, with a slightly higher profitability. The study aggregated the data of 494 companies that submitted their financial situation for 2019 (as of September 2020) and generated a consolidated turnover of RON 5.4 billion. The weight of the cumulative market share held by the most important 10 players is 66%, which indicates a medium to high degree of concentration.Read More
Coface Study: Retail Sale in Non-specialized Stores Sector – positive evolution of revenues in 2019, with a 10% increase compared to previous year
A new study conducted by Coface Romania on the sector of "Retail sale in non-specialised stores with food, beverages or tobacco predominating” (NACE 4711) indicates a positive evolution of revenues in 2019, which increased with approximately 10% compared to 2018, with a slightly higher profitability. The study aggregated the data of 46.571 companies that submitted their financial situation for 2019 (as of September 2020) and generated a consolidated turnover of RON 79.4 billion. The weight of the cumulative market share held by the most important 10 players is 63%, which indicates a medium to high degree of concentration.Read More
Revenues from the sector of retail with pharmaceutical products in specialized stores increased by 8% in 2019
A new study conducted by Coface Romania on the sector of "Retail with Pharmaceutical Products in Specialized Stores” (NACE 4773) indicates a positive evolution of revenues in 2019, which increased by approximately 8% compared to 2018, with a slightly higher profitability. The study aggregated the data of 3,999 companies that submitted their financial situation for 2019 (as of September 2020) and generated a consolidated turnover of 20.06 billion RON. The weight of the cumulative market share held by the most important 10 players is 33%, which indicates a low degree of concentration.Read More
Coface, a world leader in credit insurance, has signed the LGBT+ Commitment Charter of L’autre cercle, an association that promotes greater LGBT+ inclusion in the workplace. This commitment is part of the broader diversity & inclusion policy in place at Coface, who fully assumes its role as a socially responsible company.Read More
The twelfth CEE Top 500 study provides an outlook on the future and summarizes the region’s economic activity of the previous year, showcasing CEE as a region of prosperity. Moreover, it describes the condition of the 500 largest companies in CEE by their turnoverRead More
As we continue to navigate an uncertain economic context, this successful quarter will allow us to better weather the challenges ahead. :
Some key highlights:
Client retention and new business are at record levels
Positive net production of €36.9 million
Coface reports €28.5m net income for this third quarter
Improved net cost ratio reflects continued cost controls
The annual update of Coface's Political Risk Index, published in the Coface Q3 Barometer, highlights a dual trend: on the one hand, a decrease in the risk of conflict at a global level, but on the other, an increase in the risk of political and social fragility. The latter is exacerbated in the countries most exposed to the coronavirus pandemic.Read More
German companies want to cash in as early as possible, according to the fourth edition of Coface’s survey on corporate payment experience in Germany, conducted in July and early-August 2020, with 753 participating companies located in Germany.
Unsurprisingly, COVID-19 and its effects on the global and German economy is the predominant topic of this survey. One major finding is that German companies are getting worried: companies became cautious in providing payment terms to their clients and less companies are offering payment terms overall and these have shortened, even drastically in some sectors.
Coface launches Trade Credit Advisory, a product dedicated to improving the trade credit management process
Coface Romania supports companies with a unique product on the market, Trade Credit Advisory, which offers a full assessment of trade credit risk management processes. The launch of this product takes place in a context marked by structural changes in the economy. In this context, in-depth knowledge of a company's risk ecosystem, in parallel with the analysis of external evolutions, systemic risks, as well as key macro and microeconomic vectors becomes essential.Read More
The COVID-19 health crisis has had a negative impact on short-term global renewable energy development, and challenges remain in the medium- to long-term, according to a recent Coface study.
Renewables have strengthened rapidly in the last 20 years, particularly in power generation, increasingly gaining market share from traditional energy sources such as coal, oil, and nuclear. The COVID-19 crisis has had a significant impact on this segment of the energy sector, as the pandemic disrupted supply chains and labour availability. Access to funding was also hit hard. These recent trends have affected projects that had already been approved, as well as other projects in the pipeline.
Coface launches Diagnostic, an innovative product that helps companies correctly assess the financial situation of business partners
In the current situation marked by numerous economic challenges, Coface Romania supports companies by launching Diagnostic, a unique product on the business information market in Romania. The new product develops a risk profile of a subject company in a widely addressable language.Read More
COFACE REPORTS A POSITIVE NET INCOME OF €11.3M FOR THE SECOND QUARTER 2020 AND CONTINUES TO IMPLEMENT ITS STRATEGIC PLAN
Turnover for the first semester: €725m, down 0.6% at constant FX and perimeter
Client retention and new business achieve record levels, with a positive net production of €33m
First effects of re-pricing are now visible (+0.2%)
Revenues from services progress by 7%, including information services up by 13%
Client activities continue to slowdown – a trend expected to continue over the following quarters
Here are the main points addressed in this Coface study:
A favourable context
Foreign trade and inclusion in supply chains had already increased for Central & Eastern European (CEE) in recent years, boosted by most of its countries’ decision to join the European Union (EU) in 2004.
• An educated workforce
• Geographical proximity to Western Europe
• Low labour costs
• Relatively good infrastructure
• A stable business climate
• Improving productivity through greater use of automation and "robotization
Here are the main points addressed in this study.
Coface does not expect the sector to recover to fourth quarter 2019 level before 2022.
In Coface’s central scenario, the turnover of listed companies of the global transport sector will be 32% lower in the 4th quarter 2020 and 5% lower in the 4th quarter 2021 than in the 4th quarter 2019.
In the hypothesis of a second wave of the pandemic in the 3rd quarter of 2020, the turnover would be 57% lower in the 4th 2020 and 27% lower in the 4th 2021.
The impact of COVID-19 is all the more important since economic activity was already slowing down before the crisis.
As the COVID-19 epidemic hits the United States very hard, Coface forecasts in its baseline scenario that the country's GDP will contract by 5.6% in 2020, before rebounding by 3.3% in 2021. Nevertheless, this forecast is threatened by the resurgence of the outbreak in several states, which are already pausing or even reversing the resumption of activity after the extensive lockdown of April.
After a 2019 that was dominated by trade tensions between the United States and China, Coface has observed an incipent recovery in Asia (excluding China), supported by supply chain shifts and additional liquidity from the US Federal Reserve . Average payment terms improved in 2019, rising to 67 days compared to 69 days in 2018. And while 65% of companies reported experiencing payment delays in 2019 (63% in 2018), the average payment duration decreased to 85 days in 2019, down from 88 days in 2018.Read More
Coface announces the closing of the acquisition of GIEK Kredittforsikring AS, a company created in 2001, and owned by the Norwegian Ministry of Trade, Industry and Fisheries, that manages a short-term export credit insurance portfolio. Coface has acquired all GIEK Kredittforsikring AS shares, and the business will thus operate under the brand name Coface GK.Read More
Although the second quarter of 2020 is shaping up to be the most challenging period of the year, there are now good reasons to think that the road to recovery will be long and arduous. Despite immediate tax deferrals, liquidity guarantees, it is likely that many firms will find themselves in difficulty.
According to Coface forecasts, Spain and Italy will be among the economies hardest hit by COVID-19, contracting by 12.8% and 13.6% respectively in 2020. Corporate insolvencies are expected to increase by 22% in Spain and 37% in Italy by 2021, relative to 2019 levels. For 2021, Coface forecasts that Spain and Italy’s GDP will rebound by 10.2% and 8.9%, leaving the economies 3.9% and 5.9% below 2019 levels.
The economic consequences of the COVID-19 pandemic are of an unprecedented scale in Europe. The twin supply-demand shock has resulted in the halting of production (at least partially) in many companies as employees cannot go to work and in a fall in consumption because of mobility restrictions. The decline in revenues has deteriorated companies’ cash positions, fostering an increase in payment delays – and, ultimately, payment defaults.
Many European countries have temporarily amended the legal framework of default procedures to deal with the crisis
A few weeks after the first containment easing measures, economic activity seems to be picking up in most European countries. However, about two months after China, this gradual and partial recovery will not erase the effects of containment on global growth.
In this context, Coface forecasts that the recession in 2020 (a 4.4% drop in world GDP) will be stronger than that of 2009. Despite the recovery expected in 2021 (+5.1%) – assuming there is no second wave of the coronavirus pandemic – GDP would remain 2 to 5 points lower in the United States, the eurozone, Japan, and the United Kingdom, when compared to 2019 levels.
In the context of weaker activity in China due to the health crisis, Coface’s latest survey on business payments in China shows a deterioration in payment behaviour in 2019.
66% of surveyed companies reported payment delays. The length of payment delays remained stable at 86 days in 2019. Nevertheless, sectors that have been hit the most by lockdown measures will have to delay payments in order to survive in 2020 and the number of corporate insolvencies should increase.
recession and soaring uncertainty
The global recession is expected to coincide with a sharp decline in international trade this year, especially as international trade tends to decline more than GDP in times of crisis. However, the extent of this overreaction is difficult to measure. The World Trade Organization (WTO) forecasts a 13-32% decline in world trade. This estimate indicates that all regions would suffer a double-digit decline in their trade volumes
While the focus so far has mainly been on China, Europe, and the United States, the consequences of the COVID-19 pandemic are likely to be even more severe for emerging economies.
Even though their degree of vulnerability to this shock depends on many factors, the starting point of their public finances is a key issue, as it determines their capacity to respond to the crisis’ many economic consequences. However, their public debt was already at an all-time high in 2019. Coface assesses the direct risks (economic and sectoral) of the pandemic on the development of emerging countries.
Due to the current coronavirus (COVID-19) pandemic and its impact on the global economy, it is unlikely that China will be able to achieve its 2020 growth target. Coface forecasts a growth rate of 4% for the Chinese economy in 2020.
Economic activity in China could decelerate faster than expected this year and miss the Communist Party of China’s (CPC) growth target of 5.6%. In recent months, the Chinese economy has faced multiple headwinds, such as the consequences of the trade war with the United States, as well as structural factors, like the country’s demographic situation (15% of the Chinese population is over 65 years old). In this context, the COVID-19 pandemic is an additional shock that will add significantly to existing challenges.
First quarter shows solid operational performance but is impacted by the initial effects of the COVID-19 crisis
Turnover: €370m, up 0.9% at constant FX and perimeter
Record client retention and strong new business momentum prior to lockdown
Continued slowdown in client activities -a trend that is expected to accelerate over the coming quarters
Trade Credit Insurance growing at 0.2% at constant FX and perimeters
Dynamic growth of services, up 12%
At first, the COVID-19 epidemic in China only affected a limited number of value chains – but it has since turned into a global pandemic. Its repercussions have created a double shock – supply and demand – that is affecting a large number of industries in all over the world. The uniqueness of this crisis makes comparisons with the previous ones useless, as they all had financial origins (e.g. global credit crisis of 2008-09, great depression of 1929). The question is no longer which countries and sectors of activity will be affected by this shock, but rather which few will be spared.Read More
Ratings agency Fitch has, on 31 March 2020 placed Coface on Rating Watch Negative. This includes Coface’s Insurer Financial Strength (IFS) rating.
The ratings agency estimates that the adverse effects of the coronavirus pandemic will have a negative impact on the trade credit insurance industry, and that it is now more likely that Coface’s profitability, as measured by Fitch, will reach a level no longer compatible with the current rating.
The rating agency Moody's confirmed Coface’s Insurance Financial Strength (IFS) A2 rating on 27 March 2020. The outlook for this rating has been changed to negative.
As part of its credit insurance sector review, the agency estimates that the progression of the coronavirus epidemic, and the measures taken by governments to slow its spread, represent a scenario of severe stress for credit insurers.
Despite the economic slowdown, Coface’s latest survey on business payments in Poland shows that payment delays have systematically shortened since 2017 – but the impact of the coronavirus outbreak on the Polish economy remains to be seen.
Payment terms: transport and construct offer the most generous credit periods
Poland’s GDP growth reached 4.1% in 2019 – a slowdown from the 5.1% recorded in 2018 – and is expected to slow further: Coface anticipates GDP growth in Poland to reach 3.3% in 2020. A relatively favourable macroeconomic environment has created supportive conditions for businesses in previous years. However, the full impact of the COVID-19 coronavirus remains to be observed, notably concerning trade partners. The coronavirus’ knock-on effects could further impact the economic outlook for Poland.
Coface continues its innovative strategy expanding online offerings such as this novel Cross Border Network product. With this service, Coface enables its clients to visualize a company’s and individual’s connections leveraging the largest B2B database in CEE with about 34 million companies.
This easy-to-understand interactive, visual application provides useful background information on companies, their risk level, and sales potential
Coface capitalizes on its strategic successes and launches Build to Lead, its new 2023 strategic plan
The strategic plan Build to Lead is based on strong beliefs: credit insurance is an attractive service business, with strong barriers to entry and growth potential where Coface has strong capabilities which it will seek to deepen: its skills, scale and agility.
This new plan will broaden and deepen ongoing transformations at Coface to be recognized as a leader in its industry. It includes two types of initiatives to drive the business forward: the first for the core credit insurance business and the second for the specialty businesses that can leverage its capabilities and know-how.
COFACE SA (“COFACE”) acknowledges the announcement made by Natixis of its sale of 29.5% of the share capital of COFACE to Arch Capital Group Ltd (“Arch”) as well as Arch’s affirmed support of COFACE’s current management and of its new 2023 strategic plan Build to Lead.
Natixis has stated its intention to resign from COFACE’s Board of Directors after the closing of the transaction. Natixis also specified that its agreement with Arch states that, on this date, COFACE’s Board of Directors will be composed of ten members comprising four members proposed by Arch and six independent directors (including the current five independent directors).
AM Best assigns A (Excellent) rating to Compagnie française d'assurance pour le commerce extérieur and to Coface Re SA
Rating agency AM Best has assigned a Financial Strength Rating (FSR) of A (Excellent) to Compagnie française d'assurance pour le commerce extérieur (la Compagnie) and to Coface Re. Both ratings have a stable outlook.
The agency has also affirmed the FSR of Coface North America Insurance Company (CNAIC) to A (Excellent). The outlook remains stable.
Coface Romania Study: Insolvencies in Romania decreased by 22% in 2019 compared to previous year, reaching its lowest level over the last decade
The majority of insolvencies were registered in the wholesale and distribution sector followed by the constructions and retail sectors
The most recent Coface Romania study shows that in 2019 there were 6,384 insolvent companies, -22% less compared to the level registered in the previous year. The data also indicate a gradual decrease of insolvent companies with revenues over EUR 0.5 million (medium and large companies). The latter reached 444 companies during 2019, below the average of 550 over the last three years. This evolution was also reflected in the decrease of financial losses of only RON 4.6 billion in 2019, half of the average for the last three years.
As Coface launches the 2020 edition of its Country & Sector Risks Handbook, Chief Economist Julien Marcilly today presents the main threats for the global economy in 2020 at the Coface Country Risk Conference in Paris.
The US-China trade agreement will not be enough to rekindle international trade
With 2019 being marked by a rise in protectionist rhetoric (more than 1,000 measures implemented worldwide) and the first decline of global trade in ten years, Coface anticipates that international trade will grow by only 0.8% in 2020. The truce trade agreement between the United States and China is unlikely to restore corporate confidence or significantly boost industry and world trade, especially as only 23% of the protectionist measures taken between 2017 and 2019 affect the United States or China. The rise in protectionism is therefore a global and lasting trend that to which companies will need to adapt
Turkey Payment Survey 2019: better picture in payment term but companies remain cautions regarding economic prospects
Right after the recession that the economy went into during the second half of 2018 the private sector remains mixed in terms of the economic outlook.
Payment terms: shorter terms reflect preference for liquidity
The deterioration of cash flow has slowed down and fewer companies expressed tougher conditions while making their payments. Nowadays, the average payment term offered by Turkish companies to their clients stood nearly at 85 days in the domestic market and at 69 days in export markets (vs 108 days in 2017).
Coface Study: Retail Sale in Non-specialized Stores Sector – positive evolution of revenues in 2018, with an 8% increase compared to previous year
A new study conducted by Coface Romania on the sector of "Retail sale in non-specialised stores with food, beverages or tobacco predominating” (NACE 4711) indicates a positive evolution of revenues in 2018, which increased with approximately 8% compared to 2017, with a slightly lower profitability. The study aggregated the data of 42.051 companies that submitted their financial situation for 2018 (as of September 2019) and generated a consolidated turnover of RON 71.96 billion. The weight of the cumulative market share held by the most important 10 players is 61%, which indicates a medium to high degree of concentration.Read More
Coface Study: Revenues from the sector of retail with pharmaceutical products in specialized stores increased by 15% in 2018 compared to 2017
A new study conducted by Coface Romania on the sector of "Retail with Pharmaceutical Products in Specialized Stores” (NACE 4773) indicates a positive evolution of revenues in 2018, which increased with approximately 15% compared to 2017, with a slightly higher profitability. The study aggregated the data of 4.425 companies that submitted their financial situation for 2018 (as of September 2019) and generated a consolidated turnover of RON 19.07 billion. The weight of the cumulative market share held by the most important 10 players is 31%, which indicates a low degree of concentration.
Rating agency AM Best, on 17 December 2019, has affirmed Coface North America Insurance Company’s ‘A’ (Excellent) Insurer Financial Strength (IFS) rating, with a stable outlook.
Coface North America Insurance Company (CNAIC) is a major credit-insurance operating entity of the Coface Group and its main vehicle to access the large North American market.
In its press release, AM Best highlights that this rating reflects “Coface’s balance sheet strength, which A.M. Best categorises as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management”.
Hit by increasingly stringent regulations, particularly for environmental purposes, the global automotive industry is facing a downturn and is being forced to reinvent itself.
In a gloomy global economic context, the automotive sector faces several very specific challenges, including stronger and stricter environmental regulations. As a result, car sales are experiencing negative growth not seen since the Great Recession of 2008 and there is an uncertainty prevail in the sector.
While the number of companies facing corporate insolvency has decreased since the beginning of the year, their cost has increased, both financially and in terms of the number of jobs affected.
After a difficult first quarter, marked by the repercussions of the “yellow vests” movement, the number of corporate insolvencies since the beginning of the year in France is set to decline for the fourth consecutive year. However, Coface expects a slight rebound in insolvencies in 2020 (+0.9%), mainly due to the expected slowdown in the construction sector, which was largely driven by public works in 2019 in the run-up to the municipal elections.
Coface launches its new portal for brokers, offering a new experience to its partners in the development of their business around the world.
Available in 42 of the countries covered by the Coface group, the Broker Portal is a digital platform for Coface’s brokers. Modern and intuitive, the portal allows brokers to optimize the management of their activity. The tool portal was developed by Coface, whose ambition was to provide brokers with a high level of service and optimal satisfaction.
Coface Study: Dairy and Cheese Manufacturing Sector-negative revenue evolution in 2018, with a 5% decrease compared to 2017
A new study by Coface Romania on the sector of "Dairy products and cheese manufacturing" indicates a negative evolution of revenues in 2018, which decreased with approximately 5% compared to 2017, with a slightly increased profitability. The study aggregated the data of 448 companies that submitted their financial situation for 2018 and generated a consolidated turnover of RON 3.8 billion. The weight of the cumulative market share held by the most important 10 players is 58%, which indicates a high degree of concentration.Read More
Meat Processing and Preservation Sector: negative evolution of revenues in 2018, with 19% decrease compared to previous year
A new study by Coface Romania on the Meat Processing and Preservation Sector indicates a negative evolution of revenues for 2018, with a decrease of approx. 19% compared to the previous year. Thus, the African swine fever (ASF) lead to cuts of over RON 1 billion in the turnover of these companies, the consolidated revenues at sectoral level decreasing from RON 6.13 billion (2017) to only RON 4.96 billion (2018), the minimum in the last 5 years. According to NSVFSA (National Sanitary Veterinary and Food Safety Authority), almost 1.000 outbreaks of African swine fever are registered in Romania, just two months before Christmas. The Coface study aggregated the data of 507 companies that submitted their financial statements for the year 2018 and generated a consolidated turnover of RON 4.96 billion.Read More
85% of companies report longer payment terms in 2019 vs 2017
According to Coface's 2019 Germany payment survey of 442 companies, the country is in a phase of change. The pressure on companies from international competition is increasing. This is one of the reasons why the pressure on their cash flow continues to increase. On average, German companies saw their payment terms increase from 29.8 days in 2017 to 35.9 days in 2019.
Even if credit risks are insured, companies' confidence in their customers has declined. Short- and medium-term credit periods still dominate the market. 87% of companies request that payments be made within 60 days – a very short time in terms of international comparison. Clients missing payment deadlines now affects 85% of German companies, compared to 78% two years ago.
Agri-food sector outlook: in a global economy marked by protectionist tensions, what does the future hold?
Central to the current trade tensions, notably between the USA and China, the global agri-food sector is impacted by knock on effects, notably via downward trends on the prices of key agri-food commodities, such as soybean. Coface has conducted an in-depth analysis of future trends in this market.
A particularly strategic sector, agri-food (along with ICT) is one of the sectors key to the current trade war between the United States and China. Recently, Chinese authorities have taken steps to ban all agri-food imports from the United States, in response to the tariff increases announced by the Trump administration
With business morale being affected by a summer marked by a multiplication of areas of political uncertainty around the world, it seems likely that 2020 will be a year of economic decline.
The Argentine currency crisis, major demonstrations in Hong Kong and Russia, Brexit, the attack on oil installations in Saudi Arabia – these are just some of the many events that marked the third quarter of 2019. Increasing political uncertainty, combined with the decline in the volume of world trade, the high volatility of oil prices, and the decline in automobile sales in Europe and China, has continued to affect corporate morale.
Faced with fluctuations in hydrocarbon prices and economic sanctions from Western countries, Russia has developed a strategy that favours "Made in Russia" - but the results have remained mixed.
In an effort to accelerate the diversification of its economy following Western sanctions linked to the annexation of Crimea, Russia has implemented a series of mechanisms to reduce its dependence on imports and hydrocarbons. But the willingness to substitute local production for imports depends on many factors, not all of which are present.
Rising protectionism in China and the United States, Brexit, contracting world trade... despite all the clouds on the horizon, the Dutch economy remains surprisingly bright.
A dominant global maritime and economic power in the 17th century, the Netherlands has remained a major player in world trade. In 2018, the Netherlands was the sixth-largest merchandise exporter in the world and, in terms of GDP, ranked third in 2015 (just behind Ireland and Switzerland).
Insolvencies in Central and Eastern European Countries (CEE): despite an increasingly difficult global economic context, the situation remains posit...
The Central and Eastern European region has experienced unparalleled growth in the European Union. However, a slowdown is expected in the coming years.
The CEE region has seen an improvement in economic activity in recent years. In 2017 and 2018, GDP growth in the region rose to 4.6% and 4.3%, respectively, the highest rates since 2008.
Coface publishes CEE Top 500 companies: Do external risks overshadow long-lasting solid economic growth in Central and Eastern Europe?
The international credit insurance company presents its eleventh annual study on the biggest 500 companies in Central and Eastern Europe – the Coface CEE Top 500. It ranks businesses by their turnover and additionally analyses further facts such as the number of employees, the framework of the companies, sectors and markets as well as the new Coface company credit assessments. The economic development of the CEE Top 500 is representative of the market trend in the entire region.Read More
Despite improving economic performances across the Gulf Cooperation Council (GCC), monetary and financial conditions remain tighter compared with before 2015. Access to financing remains one of the key issues for companies, particularly for small- and medium-sized enterprises (SMEs). Loan growth in the region has recovered somewhat thanks to higher oil prices, but it remains below its historical averageRead More
Coface’s 2019 Asia Corporate Payment Survey covered over 3,000 companies in nine economies (Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, Thailand and Taiwan). 63% of companies surveyed stated that they experienced payment delays in 2018. The length of payment delays increased to 88 days on average in 2018, compared to 84 days in 2017. The length of payment delays was highest in China, Malaysia and Singapore; as well as the energy, construction and ICT sectors.Read More
With numerous bouts of conflicts, terrorism, and social and political tensions, which show no signs of stopping in the near future, Africa will continue to experience fragility and destabilization. The countries on the African continent have been regularly afflicted by conflicts of different intensity and nature in recent decades that made them suffer from a decline in investment and trade flows, delaying the development of some countries on the continent. In its latest panorama of political risks, Coface looks at the African continent and highlights, not only the latest trends in terms of conflicts, but also the risks of instability that impact the region's economic development.Read More
A new survey conducted by Coface Romania on the wholesale of pharmaceutical products indicates a positive trend of the revenues of the companies operating in this sector of activity in 2017, but with a slight decrease in profitability. This study aggregated the data of 1,662 companies, which submitted the financial data for 2017 and generated RON 28.6 MLD consolidated turnover.Read More
Coface Survey: 33% decrease of Insolvencies in Romania in H1 2019 compared to the same period of the previous year
A new survey conducted by Coface Romania on the evolution of insolvencies in Romania in H1 2019, points out a 33% decrease in the number of insolvent companies during this period, in the context of a real and sustainable economic growth of 5.1%. However, the macroeconomic evolution is not sustainable due to many imbalances: the growth of the fiscal deficit by 81% during the first half of this year compared to the same period of the previous year, the highest annual inflation in the EU of 4.1%, the increase of the trade deficit and depreciation of the national currency. Moreover, Coface’s analysis shows that the decline of insolvencies is offset by the increase of the number of radiated companies, the payment delays increase significantly and the large companies are facing a challenging economic environment.Read More
US/China trade war, struggling automotive sector, slower growth in emerging economies... the second quarter of 2019 highlights a global economic slowdown
The decline in world trade is confirmed for this first half of the year and even if a slight recovery is expected in the second half of the year, it should suffer a 0.7% loss in volume over the year according to the Coface barometer. World economic growth is expected to decrease from 3.1% in 2018 to 2.7% in 2019 and then remain stable in 2020. In this context, Coface expects that a majority of countries should see an increase in corporate insolvencies this year.
While the yellow vests movement did have a strong impact on corporate insolvencies at the beginning of the year, the decline in mobilization and the resilience of economic growth had a positive impact on the health of French companies in March and April.Read More
The natural gas market is booming and will increase in the medium term, but many factors point to a less promising future.
Until recently, natural gas was acclaimed as the "cleanest" of fossil fuels and all indicators point to an increase in demand and production.
Coface's fourth survey on payment terms in Morocco shows a situation that remains worrying despite a slight improvement.
Coface presents its fourth survey on the payment behavior of companies in Morocco. Carried out at the beginning of 2019, this survey aims to monitor the evolution of payment terms and delays between the various Moroccan economic actors.
Positive revenue trend and an increase of 17% in 2017 compared to the previous year for wholesale of wood, construction materials and sanitary equip...
Positive revenue trend and an increase of 17% in 2017 compared to the previous year for wholesale of wood, construction materials and sanitary equipment
• 17% increase in consolidated revenues in the sector;
• The money conversion cycle became positive in 2017, 3 days, from -1 day in 2016;
• Decrease in the period of receivables collection from 64 to 60 days.
• More than one third of companies (43%) registered a decrease in revenues;
• Almost a third of the companies operating in this sector do not obtain profit from their core business;
• Among companies with turnover > EUR 1 Million, 2018 was a maximum in terms of the number of incidents recorded and the number of companies for which they were registered.
China coordinated its approach to 5G and some successes are already visible. However, China still relies on imports, especially for high-end products, leaving the sector exposed to protectionist threats. Moreover, the deployment of 5G networks by Chinese companies is perceived as a cybersecurity risk by many recipient countries. The US is banning Huawei equipment and pressing its allies to do the same, which could limit the growth of Chinese 5G in the future.Read More
In a global economic slowdown, luxury continues to outperform but faces new challenges
Counterfeiting, e-commerce, Chinese consumers importance - even if it is generally relatively spared by recessions, the luxury market must adapt to a profoundly changing economy if it does not want to lose its exceptional status.
Road freight transport sector: 61% of the companies in this sector exposed to a medium to high and high risk of insolvency
• Consolidated sector revenues increased by 14%
• Over a third of the companies (40%) made investments in 2017
• Profitability ratios have remained at the same level as last year
• Over half of the companies in the sector are exposed to an insolvency risk above average
• The car fleet is obsolete, with 75% of the registered vehicles in use at the end of the year being older than 10 years, in line with the modest evolution of the infrastructure
• Over one third of the companies (43%) reported a decrease in revenues
When Narendra Modi ran for Prime Minister in 2014, he pledged to boost the competitiveness of India’s industrial sector to promote growth. Modi will be running for president again in India’s general elections between 11 April and 19 May. The economy is in a better position than it was in 2014, but many of the structural fragilities that Modi inherited continue to afflict India today and a mixed track record in terms of economic reforms has dampened enthusiasm for Modi.Read More
Coface anticipates a 3% increase in insolvencies in Western Europe and 4% in Central and Eastern Europe
• Signs of a slowing global economy continue to accumulate
• 2019 - the number of insolvencies will increase in two-thirds of countries (+3% in Western Europe)
• The chemical industry in Europe and North America is suffering from fewer opportunities in the automotive sector
• Improvements in assessments are concentrated in the Middle East, including Saudi Arabia's upgrade (B)
Coface strengthens its market position in the Adriatic region by acquiring SID - PKZ, the leading credit insurance company in Slovenia
Coface announces today the acquisition of SID - PKZ, the market leader in credit insurance in Slovenia with a high market share. As Coface has acquired all SID - PKZ shares, the business will operate under the new brand name Coface PKZ. The acquisition supports Coface’s strategy of profitable growth in Central & Eastern Europe region.Read More
Local companies set to benefit from Coface’s expertise in risk prevention and payment protection.
In line with its strategic ambition to grow in promising new markets, Coface is launching its credit insurance offer in Greece. Coface is now able to strengthen its support to Greek businesses, by providing them with its recognised expertise in monitoring the credit-worthiness of millions of companies all over the world, and by protecting their commercial transactions.
In 2018, insolvencies in Romania remain at approximately the same level of 2017, but the forecasts show an increase of at least 20% in 2019-2020
The macroeconomic context becomes unstable, following the procyclical fiscal policies that cause the increase of a very high fiscal deficit in a period of attenuated economic growth. The number of insolvent companies in 2018 is similar to the one registered in the previous year, namely almost 8,200 companies, and continues to be on the level of the last decade.Read More
The international credit insurance company Coface presents its tenth annual study on the biggest 500 companies in Central and Eastern Europe – the Coface CEE Top 500. It ranks the businesses by their turnover and additionally analyses further facts such as the number of employees, the framework of the companies, sectors and markets as well as the new Coface company credit assessments. The trend of the CEE Top 500 reflects developments in the region.Read More
Insolvencies are the minimum level of the last ten years, but the level of losses generated to creditors is close to the maximum in the last decadeRead More
4,199 new insolvency procedures were initiated in the first semester of the current year, down by 5% fewer in relation to the same period of the previous year, when 4,442 insolvency procedures were initiated.Read More
With the wave of ongoing elections in countries such as Hungary, Czech Republic, Poland and Slovenia, Central and Eastern Europe is undergoing a major period of change against the background of economic growth that is still strong (...)Read More
In 2017, in Romania, 8,256 new insolvency proceedings were opened, by 3% more than in the previous year, when 8,053 insolvencies were opened. Despite the minimum level of the insolvencies registered in the last 15 years, Romania reports an average rate of the ratio between the number of insolvent companies and 1.000 active organizations is of 2.4%, almost twice the average in the Central and Eastern Europe.Read More
2018: the upturn continues, but corporates risk overheating
During its annual conference on country and sector risks, Coface shares with companies its vision of the major global economic trends for 2018.
Cresterea continua depaseste asteptarile
Economia Turciei a inregistrat o crestere semnificativa in primele trei trimestre ale lui 2017, in urcare cu 7,4% comparativ cu anul precedent. Acest lucru s-a realizat in ciuda seriei de socuri care au avut loc in tara in 2016.
Although dynamic, France’s organic food sector could be forced to abandon its original principles in order to increase scale
Organic production is insufficient to meet consumer demand
France’s organic food sector has been experiencing double-digit growth since 2014. This upward trend was confirmed during the first half of 2017 and suggests that there will be a growth of almost 14% for the entire year which will represent a turnover of over 8 billion Euros, according to Coface’s estimates.
A better year for exporters and domestic trade
The second annual corporate payment survey for Germany carried out by Coface confirms many of the foregone trends. However, some improvements can be seen.
Europe remains the big winner in the world economic upturn.
World economic growth might not yet be at its highest (2.9% in 2017 and 2018), but there can be no denying that there are healthy signs. This quarter, once again, nearly all of the revised country and sector risk assessments from Coface show marked improvements.
The trend of the insolvency ratio in the sector is downward over the past three years, similar to the trend at the level of the entire economy, but it is maintained above the latter.
In 2015, the wholesale of wood material and constructions materials and equipment sector ranked 8 in the Top 10 sectors (NACE 4 digits) based on the number of insolvent companies (as in 2014), considering that the number of insolvent companies related to the number of active companies (turnover > 0) was above the national average (2.2% in 2015 and 4.5 in 2014, respectively).
The bond market is turning into a "spare tyre" in several countries of Asia, Central Europe and Latin America
Since the early 2000s, corporate debt in the emerging countries has been on a constant rise, with significant acceleration since the 2008 crisis: the value growing fourfold between 2008 and 2017, corresponding to a nigh-on 25 percentage point rise in the GDP. Emerging Asia is the region most concerned by corporate debt (133% of GDP in 2016), largely caused by China.Read More
Extended payment periods across practically all sectors: 99 days on average in 2017, up from 82 days in 2016.
The latest edition of Coface’s annual survey analyses the payment behaviour of 256 companies in different sectors of activity. The sample of participants covered is 23% larger than for the 2016 edition and includes more export companies.
Less business insolvencies in 2016, but a downturn in the construction sector.
2016 showed a continued decline of 6% in the number of company insolvencies in the Central and Eastern European region, following a fall of 14% in 2015. In all, over the course of last year, six entities per 1,000 became insolvent. This improvement was in line with the favourable macroeconomic environment, largely due to the positive situation on the labour market, with lower unemployment rates and rising wages. Despite this, insolvencies are still above the pre-crisis levels of 2008 in most countries. Romania and Slovakia were the only two countries to record lower levels of company insolvencies than before 2008.
Although the number of insolvencies in the first semester of 2017 is similar to that of the last year, namely 4,442 new proceedings, the companies with a turnover of more than 1 M EUR which became insolvent in the time interval analyzed increased by almost 20%, reaching 180 companies.Read More
Although the number of insolvencies in the first semester of 2017 is similar to that of the last year, namely 4,442 new proceedings, the companies with a turnover of more than 1 M EUR which became insolvent in the time interval analyzed increased by almost 20%, reaching 180 companies.Read More
Political developments in the US have caused uncertainties over the trade policies that could be implemented and the region’s vulnerability to tighter financial conditions.
Costa Rica, El Salvador, Honduras and México are the countries in the region that are the most vulnerable to any eventual import measures imposed by the United States. This is due to their high level of trade exposure to the US (which is also, more specifically, focused on manufactured goods). In addition to their overexposure to the US, these countries’ GDPs are more dependent on exports than other countries in the region are.
Coface’s latest annual payment survey covered 2,795 corporates in the Asia Pacific region, focusing on 8 markets: Australia, China, Hong Kong, India, Japan, Singapore, Taiwan and Thailand. The survey also traced the evolution of corporate payments in 11 sectors.Read More
Coface, the worldwide leader in trade credit management solutions and risk information services, has published its first-ever Credit Opinion Survey for the UAE region, which was conducted among 136 companies from 11 different sectors with the aim of understanding trends and developments in corporate payments.
The survey’s participants reported that payment terms are lengthening. Companies have reacted to lower sale volumes, stemming from weaker global trade and tightened liquidity, by delaying payments. Nevertheless, despite these lengthier payments, the majority of the respondents are optimistic on the future economic outlook for the UAE and GCC region.
In the absence of sufficient profits, the investments continue to be financed by the late payment of suppliers.
According to the financial data available for 2015 for all the companies which activate in the sector of road transport of goods, these register increasing rev-enues which can be found in insufficient profits. The investments for revamping represent 39% of the total assets, significantly over their wear and tear dynam-ics for the fourth consecutive year, the impact being slightly visible in the light of a sensitive increase of the consolidated profitability. The companies in the analyzed sector have maintained the high level of the supplier credit, their aver-age payment duration being of 112 days while the receivables are collected at 88 days.
The second quarter of 2017 marked a new start for Europe, Russia and, on the sector side, for the automobile and agrofood industries in several countries.
In order to give companies a more complete picture of the risks worldwide, Coface is now publishing quarterly assessments of 12 sectors in 24 countries representing almost 85% of the world's GDP, as well as 160 country risk assessments.
The second quarter of 2017 marked a new start for Europe, Russia and, on the sector side, for the automobile and agrofood industries in several countries.
In order to give companies a more complete picture of the risks worldwide, Coface is now publishing quarterly assessments of 12 sectors in 24 countries representing almost 85% of the world's GDP, as well as 160 country risk assessments.
Despite the UK economy's resilience, a wait-and-see attitude will develop among businesses and intensify during the negotiations phase.
One year on from the vote to leave the EU, UK businesses are showing resilience, bolstered by household consumption (up 2.6% in 2016), favourable credit conditions and strong worldwide demand. In the last quarter of 2016, companies’ profits totalled over 105 billion pounds sterling - an all-time high. Confidence rose significantly, especially amongst SMEs, after an initial fall in the aftermath of the referendum. Sterling's sharp drop, which is the most visible sign of the looming Brexit, explains the strength of exports, even if the benefits of price competitiveness remain slight.
A survey on corporate credit risk management, to which 1,017 Chinese companies responded, reveals that corporate payments improved in 2016, with only 68% of the respondent companies experiencing overdue payments in 2016 (compared to the previous 5-year average of 80%) and fewer respondents reporting an increase in overdue amounts. Nevertheless, the situation surrounding ultra-long overdues gives cause for alarm, as 35.7% of those companies concerned had ultra-long overdue amounts (over 180 days) which exceeded 2% of their annual turnover.Read More
Starting with the internal and external risks to which the Romanian business environment is subjected, Coface Romania analyzes a very important additional risk with a possible devastating impact on the business environment: low immunity in case of commercial credit failure.
The implications of commercial credit risk have become serious, given that 7 out of 10 companies pay their suppliers later, the supplier credit balance has doubled since the financial crisis so far, the average debt collection period has increased twice, suppliers have becoming the biggest creditors of the companies.
The diversification of the Russian economy, made necessary by a slump in oil prices that is set to last, is coming up against structural constraints that may well have a deleterious effect on its mid-term growth. Certain sectors (agrifood, chemicals, automotive, etc.) do, however, seem to be benefiting from an upturn in business that will contribute to recovery in 2017.Read More
While public infrastructure construction is at least the last 10 years, the residential sector is experiencing a rather accelerated recovery.
In order to draft this study, we considered all the sectors that are directly involved in the construction activities, regarding the residential area, public infrastructure, recurrent maintenance or related activities (sanitary installations, electrical installations, painting, coating, window assembly, carpentry and woodwork, etc.). Thus, the sample comprises 65,445 companies, approximately 10% of all Romanian companies, distributed for each sector depending on the turnover.
Coface places digital transformation at the heart of its strategy with launch of new customer portal
Coface’s new customer portal and fully revamped CofaNet Essentials online credit insurance contract management tool are being launched today. With the new solutions, customers will benefit from innovative features, unique access, customised content, advanced ergonomics, real time results displays and easier contacts.Read More
Labour shortages in the Central and Eastern Europe region: an opportunity for households but a threat for local companies
Developments in Central and Eastern Europe (CEE) labour markets have been beneficial for households. Rising wages and low inflation, combined with improving consumer confidence, have led to lower unemployment rates and an increase in private consumption. However, the upturn on the labour market is such that companies are increasingly facing difficulties in recruiting, especially qualified personnel. Manpower shortages and the consequential rise in labour costs are concerns for businesses.
Developments in Central and Eastern Europe (CEE) labour markets have been beneficial for households. Rising wages and low inflation, combined with improving consumer confidence, have led to lower unemployment rates and an increase in private consumption. However, the upturn on the labour market is such that companies are increasingly facing difficulties in recruiting, especially qualified personnel. Manpower shortages and the consequential rise in labour costs are concerns for businesses.Read More
Revenue from grain growing rose by 5% in 2016 compared to the previous year.
According to the financial statements submitted to the Ministry of Public Fi-nance for 2015, the number of companies working in the grain cropping sector (NACE 0111) is of 8,056, out of which 1,438 (18%) did not carry out any activity, while 2,692 (33%) have registered incomes below 100 K EUR.
The widespread rise in the political risk conceals mixed regional dynamics. A complete global index to quantify political risks rooted in the current state of affairs.
Following the political risk index specific for Western Europe (2016) and emerging countries (2013), Coface launches a global index for 159 countries. Combination of two major components - the security risks (conflict and terrorism) and the political and social risks - allows a complete ranking of the political risk.
Coface opens a regional IT development center in Bucharest and launches recruitment drive for 80 specialists
The Coface Group, expert in credit insurance, will be opening an IT development center in Bucharest at the beginning of April, employing 80 people.
The opening of the center is designed to support Coface’s ambition to become the most agile global trade credit partner in the industry. As part of the Group’s strategic plan, a large number of projects have been initiated aiming to extend and consolidate Coface’s information systems. In the credit insurance sector off-the-shelf software does not exist for all “core” business activities, which leads Coface to develop the most critical core business applications internally.
Study on issuing and cashing invoices among SMEs resulting from the strategic partnership between Smart Bill and Coface, whereby companies from Romania will be able to recover their outstanding invoices easier.Read More
The three largest companies in Baltic States based on turnover are all from Lithuania, according to the Baltics Top 50 companies rating compiled by the international credit insurer Coface. As a positive trend in the Baltics Coface experts mark the rise of household consumption and labor market improvements.Read More
Economia Chinei a crescut cu 6,9% in 2015, cel mai slab ritm de expansiune din ultimii 25 de ani. Cresterea ar trebui sa-si continue incetinirea in 2016 si 2017 si probabil va atinge 6,5% - astfel cum este prevazut in planul de cinci ani, pentru 2016 - 2020. Reformele structurale continue ale Chinei au inceput sa se concentreze asupra serviciilor si a consumului, ceea ce face ca economia cu doua viteze a tarii sa fie si mai evidenta. Decalajul dintre sectoarele castigatoare si cele perdante este legat de potentialul lor de crestere pe termen mediu si lung, de politicile guvernamentale relevante si de cererea structurala.Read More
Biggest players benefit from favourable business conditions in CEE
• Booming economy: increase in turnover by +4.2%
• Poland wins again, Czech Republic climbs up to the second rank fol-lowed by Hungary
• Sectors: 12 of 13 sectors with increase in turnover, only oil & gas still in trouble
Romania registered a total of 105,545 new insolvent companies 2011-2015, an annual average of about 20,000 insolvent companies. A very large volume, especially they represent about 16% of the total registered Romanian companies, and a quarter of all active companies (which register revenues). Not only the number of insolvent companies in the analysed period is very high, but also their size. Thus, 2,933 of insolvent companies in the analysed period registered over 1 M EUR turnover, given that the average of the active companies operating nationwide in this income segment was about 23,455. The business environment in Romania has lost in the past five years about 13% among companies with high incomes.Read More
• Forecast world growth for 2016 down by 0.2 points to 2.5%
• The average level of global risk corresponds to B, « significant risk »
• Increasing numbers of emerging markets included in the "extreme" and "very high" risk categories
• Three leading world economies become fragile
• China penalises activity in several Asian countries
• Europe facing positive dynamics, but political risk driven by the Brexit must be monitored
Coface upgraded the Romanian’s rank level to A4, risk class indicating that the economic and financial outlook could be marked by some weakness. The political context suffers from tensions, and the business climate still presents significant shortcomings. The average probability of company default is reasonable. In this context, we notice, for the first time in the last eight years, a decreasing effect in the economy caused by insolvencies.Read More
Infographic: Despite persistent crises, sub-Saharan Africa presents opportunities in 2025 time-frame
The global economy is in turbulence. China’s economic slowdown and the fall in commodity prices have weighed on fundamentals in sub-Saharan African countries. Growth, at 3.4% in 2015 and 2.6% in 2016 (according to Coface forecasts), is the weakest since the 2008 crisis.Read More
Thierry Croiset (56) s-a alaturat asiguratorului de credit Coface in calitate de Group Risk Director incepand cu data de 11 iulie 2016, raspunzandu-i direct lui Carine Pichon, Chief Finance & Risk Officer.Read More
Countries in the Central and Eastern Europe region enjoyed favourable economic con-ditions last year. This led to an improved situation for CEE businesses. The number of insolvencies decreased over the course of 2015 in 9 out of 13 countries, while the GDP-weighted regional insolvency average was -14%. The region showed a varied picture, with double-digit deterioration recorded in Ukraine and Lithuania, whereas Romania and Hungary enjoyed significant improvements. Coface forecasts that businesses will continue to take advantage of supportive conditions and that company insolvencies will drop by -5.3% in 2016.Read More
As of 2007, Eugen joined Coface Romania, and he owned, over time, more strategic positions, such as Credit Insurance Manager during April 2007 - January 2011, Deputy Managing Director, during January 2011 - September 2012.Read More
The evolution of the Romanian economy in 2015 - Macro balance coupled with challenges within the business environment
Coface has kept the country risk assessment for Romania to B, a risk class indicating an unstable macroeconomic environment, capable to affect a company's historical payments. Despite the macroeconomic balance, the kickback in the euroisation and nominal convergence criteria, Romania remains vulnerable due to structural imbalances in the domestic microeconomic.Read More
The Board of Directors of Coface announces the appointment of Xavier Durand as Chief Executive Officer
This appointment will become effective following the Board of Directors’ meeting to be held on 9 February to approve the accounts for fiscal year 2015. Jean-Marc Pillu will continue in his role as Chief Executive Officer of Coface until this date.Read More
The local real estate residential construction sector - companies in this area have the highest share of high insolvency risk in ECE
According to the financial data available for 2014, companies operating in the sector of construction of residential and non-residential real estates register increased revenues observed in higher profits. This is the conclusion after we have analyzed 15,246 companies that submitted financial statements in 2014 in an extended format; it is a relevant sample taking into consideration that it generates about 95% of the turnover of the entire portfolio of companies. On this occasion, it appeared that investments in retechnologisation are needed, in 2014 having been made investments in fixed assets of only 5%. For the second consecutive year, the pace of retechnologization was under the attrition dynamics, which means a lack of economic performance. Companies in the analyzed sector maintained a high level of credit provider, the average duration of its payment falling to 272 days, while the claims are collected at 168 days.Read More
According to financial statements published by the Ministry of Finance, in 2014, the companies with the core activities of “Growing of cereals (except rice), leguminous plants and oil seeds plant” generated a RON19.09 MLD turnover, up to 24% YoY.Read More
Following its innovative offer Policy Master, Coface is targeting the specific needs of larger companies who manage a significant number of credit limits with CofaServe. This solution provides an interconnection between the Coface database and clients’ in-house IT systems. This puts companies in a strong position to improve the effectiveness and speed with which they manage their credit insurance contracts.Read More
The current global economic situation could be summarised as a gradual recovery for advanced economies and turbulent times for emerging countries. Exceptions to this are the emerging economies of Central and Eastern Europe which, in most cases, are on an improving track. Poland, in particular, is outperforming. On a microeconomic level, company insolvencies in Poland are mirroring its accelerating economic growth. Insolvencies dropped by 5.1% in 2014. This trend is continuing and bankruptcies decreased by 3.3% during the first half of 2015, with economic growth recorded at 3.4% in the same period.Read More
China is trying to find a way to achieve healthier, more sustainable growth, but this is not completely painless for its economy – or for those of its neighbours. According to Coface estimates, growth is unlikely to exceed 6.7% in 2015 and 6.2% in 2016, compared with 13.4% over the period 2006-2007. This is mainly a result of the technological and capital catch-up process running out of steam: several industries are suffering from overcapacity and corporate indebtedness is high, thus impacting investment. We are witnessing a shift in the Chinese economic model. Which Asian countries will be the first victims if there is a hard landing? And which will enjoy the greatest immunity?Read More
As oil continues to be a major contributor to economic performance in the GCC, economic diversification is vital for the Gulf countries to ensure continued healthy growth. This has been showcased in Saudi Arabia and the UAE, which are driving sustained GDP growth through significant government investment in non-oil sectors. In the UAE, the food and beverage sector is forecasted to grow by 36% between 2014 and 2019, while KSA’s automotive industry is slated to rise by 5.2% in 2015.Read More
Growth in Latin America has been slowing down since 2011. This lacklustre situation, caused by weak domestic fundamentals, has been exacerbated by cyclical factors experienced since the second half of 2014. In 2015 we have ob-served a further deterioration of this (...)Read More
Company insolvencies in Western Europe have experienced two successive storms. The subprime crisis, which made insolvencies jump by an average of +11% in the twelve countries studied was, unsurprisingly, followed by further shock waves, with increases of +8% in 2012 and +5% in 2013. Today the skies have begun to clear. The average drop of 9% observed in 2014 will continue with -7% in 2015 . While insolvencies continue to increase in Italy and Norway, they are seeing the positive impact of the timid recovery in the eurozone in ten other countries (Germany, Belgium, Denmark, Finland, France, the Netherlands, Portugal, United Kingdom and Sweden).Read More
Coface Romania conducted a new study on the Romanian insolvencies’ evolution, taking into consideration the newly opened cases registered within the Bulletin of Insolvency Proceedings for January - June 2015.
Coface’s analysis indicates that during the first semester of this year 5,524 new insolvencies were registered, down by 57% compared to the same period of 2014 when 12.862 new insolvencies were opened.
•2014: A year of improvement throughout the region - turnover increased by +2.1%
•Higher turnover of the biggest companies reflected better economic prospects in 2014
•Poland was the biggest player, Hungary had the highest growth rate and the Czech Republic recovered
•Sectors: Automotive industry (+10.6%) top, oil & gas sector flop (-3.9%)
The CEE automotive sector is highly dependent on foreign investments - but there are positive dynamics in domestic demand
The CEE region has become an attractive destination for investments by global car manufacturers. In 2014, 3.6 million vehicles were produced in Eastern Europe, equating to 21% of total EU production (...)Read More
This map gives you a global overview of country risk assessments. Coface's methodology in assessing country risk uses macroeconomic expertise, comprehension of the business environment and microeconomic data collected over 70 years of payment experience.Read More
Although growth was accelerated by the high prices of commodities on which sub-Saharan Africa is highly dependent, the region must now deal with the effects of falling oil prices. The 45 countries screened by Coface are affected to different degrees.Read More
In May 2015, the IMF highlighted India as “one of the bright spots in the global economy”, mainly due to more effective policies and the end of political uncertainty. Coface expects the country’s GDP growth to reach 7.5%. But to what extent have Modi’s reforms contributed to the recent pickup in growth? Are the improvements in the economy without risks?Read More
Aimed at the evolving credit insurance needs of mid-market companies, Coface has modernised its flagship policy, renamed TradeLiner. The move follows on from the experience Coface gained through its first global non-payment protection offer introduced fifteen years ago and is based on its desire to work harder to help protect mid-sized companies operating in the real economy.Read More
April 1st 2015 marked the end of milk quotas in Europe, a regulatory tool imposed in 1984 in response to overproduction, leading to the so-called “butter mountain” and the “milk lake”. For the first time in 30 years, the market alone will determine the quantities of milk produced. Are French dairy farmers ready for this? Is the abolition of milk quotas going to make it possible for milk producers to supply the rapidly growing markets in Asia? Or to develop to meet the high level of demand for organic products?Read More
Business insolvencies in France at the end of April 2015: The numbers continue to slowly improve, at -2.7% on a year
The favourable swing first seen in 2014 continues. The immediate rise in business insolvencies in the first four months was partly due to a catching up after the artificially low year-end data, because of the industrial action within the court system, which has however resurfaced in May.Read More
Coface Insolvency Monitor for Central and Eastern Europe: Economic perspectives improved but corporate challenges remainRead More
Coface launches an innovative offering for SMEs: EasyLiner, a simple on-line solution to protect against unpaid invoices
Coface has developed a tailored SME offering with two aims in mind: protection and accessibility. EasyLiner provides quality cover adapted to the needs of SMEs, as well as an easy subscription process, leaving businessmen free to concentrate on their core business.Read More
Coface, one of the the leading credit insurers and market leader for information in Central Europe, re-launches its online business information marketplace. InfoICON – the biggest database in CEE – provides online information on more than 43 million companies in Western, Central and Eastern Europe.Read More
Coface’s survey carried out based on the data provided by the National Trade Register Office shows that 2,740 new insolvencies were opened in the first quarter of 2015, down by approximately 58% compared to the same period of the previous year when 6,512 insolvencies were registered. However, in relation to 1,000 active companies, the rate of insolvencies is four times higher than the average registered at the regional level, Romania being in the first place from this point of view.Read More
According to the financial statements published by the Ministry of Finance, the companies whose main scope of business is "Construction works for roads and highways" generated a total turnover of 11.7 BRON during 2013, down by 22% compared to the previous year.Read More
According to the financial statements published by the Ministry of Finance, the companies whose main scope of business is the “Growing of cereals (except rice), leguminous and oil seeds crops”, NACE code 0111, generated in 2013 a total turnover of 15.3 BRON, by 7% lower compared to the previous year.Read More
Not all advanced economies are in the same position when it comes to this risk of long-term stagnation and some exceptions stand out in what is a fragile global landscape. Which of the OECD’s advanced economies have what it takes to accelerate their growth over the next decade?Read More
Czech Republic under positive watch (A4)- economy benefits from good prospects in the car industry and household consumption
The Czech Republic is recovering from recessive effects as a result of debt crisis in the Eurozone. The economy regained momentum reaching solid growth of GDP by 2.0% in 2014 and even a higher growth of GDP by 2.5% is forecasted by Coface to be reached this year. The main driver of the Czech economy will be the export of passenger cars as well as the rising consumer consumption.Read More
Slower growth and increase in non-performing loans expected in 2015. A new Coface survey on corporate credit risk management in China reveals that 8 out of 10 corporates experienced overdue payments in 2014.Read More
Latin America is a major producer of commodities and the recent drop in oil prices is impacting the region’s countries in different ways. Which countries could benefit from lower international quotations - and why are others negatively impacted?Read More
We are pleased to publish full-year results in line with our expectations. Our innovative product offering, appropriate distribution channels, extensive international presence and prudent risk management have all contributed to the significant improvement in our results.Read More
Insolvency statistics for the Polish construction sector show that a milestone has been reached. It has transformed from a negative performer, feeding bankruptcy levels in 2010-2012, to the sector with one of the highest improvements in terms of insolvencies. Do these statistics indicate a long-term improvement for the entire sector? So far the housing industry, which is a small part of the construction sector, shows signs of improvement and new EU funds are helping to mitigate risks.Read More
Julien Marcilly is appointed chief economist of Coface, with effect from 2 March 2015. He will take over from Yves Zlotowski, who will pursue a career outside economic research and the credit insurance industry.Read More
Turkey: Depreciation in exchange rates and sluggish domestic demand affect corporate payment performance
Disclosure of the exit strategy by FED Chairman Ben Bernanke in May 2013, triggered a new period marked by a change in the risk perception towards developing economies in financial markets. Turkey entered this period with a high current accounts deficit, a production sector substantially dependent on imports and three successive elections.Read More
Economic activity is gaining strength in Middle East and North Africa region - Strong growth momentum in GCC countries continue, economic recovery in oil importers is on track - Oil exporters successfully diversified their economies, but they are still heavily dependent on hydrocarbon sector in terms of budget and export revenues - Oil importers face higher risks of geopolitical tensions - Morocco and Tunisia seen benefitting from European recovery, higher political stability
In its basic scenario of the 2014 in Romania, Coface estimates that the annual increase of the GDP shall be 2.5%, with a possibility to vary between 2.2% - 2.5%, as the final value depends on the spending level of December (including the governmental one). In 2015, increase of the real GDP is estimated at 2.7%, taking into consideration the possibility to vary between 2.5% - 2.7%, if agriculture sees a dynamics close to the long-term trend.Read More
2015 Country Risk Conference: In 2015, the global recovery will be laborious and subject to multiple risksRead More
Three decades ago, Latin America was associated with negative terms such as ‘dictatorship’, ‘debt crises’ and ‘high inflation’. Over the years, the region has begun to be associated with economic growth, the new middle class, poverty reduction and controlled inflation.Read More
Coface Romania and Banca Romaneasca protect the companies against non-payment risks and support them in obtaining financingRead More
Meat processing industry manages to defeat the economic crisis, but still it has to work on its profitability
After four consecutive years where the companies within the meat processing industry sacrificed their productivity in favor of commercial development and maintaining the market shares, in 2013 the sector continued the favorable evolution in terms of sales volume (the third consecutive annual growth registered 7% of the total turnover), accompanied for the first time with a recovery of the profitability (net rate of 1.71% of the turnover).Read More
The insolvency statistics for Polish companies reflect an improvement during the first half of 2014. In total 402 companies declared bankruptcy, representing a decrease of 11.5% compared to the same period in 2013.Read More
- 5% growth projected for 2014 on the back of successful diversification policy
- Favourable business environment, supported by new company law to improve transparency
- Debt profile improves. Financing needs of government-related entities (GRE) continues to be a question
Since the beginning of the year, the Chinese government has continued its efforts to implement various items on the reform agenda, particularly those concerning fine-tuning the structure of the Chinese economy.Read More
Giving up the profitability was the price paid by the distributors of food, beverages and tobacco in order to maintain the sales volume at a level comparable to the one registered in the years before the financial crisis.Read More
At a time when it appears vital to capture the growth potential in Asia, European airlines are stumbling due to aggressive competition from low cost operators and airlines from the Gulf. Currently, they are among the least profitable in the world. Faced with these new constraints, what changes are conceivable?Read More
Romanian sector of IT products’ distribution - Until when can withstand downward pressure on revenues and expenses optimization?
Since 2009, the distributors of IT products registered a constant decrease of the income in parallel with a positive financial performance. Thus, the average revenue per company registered in 2013 was 22% lower than the one recorded before the financial crisis, ie 2008, but in the same time the net result of 2.4% for 2013 at the sectorial level is the maximum registered in the last 10 years.Read More
Coface now offers customers a mobile application providing access anywhere and at any time to the essential features of Cofanet, its online platform for managing credit insurance contracts. The application will be available for download at the Apple App Store and Google Play Store.Read More
According to the financial statements published by the Ministry of Finance, 27,252 companies whose main activity was the "road freight transport" during 2013 generated a total turnover of 26.6 BRON up by 8% from the previous year.Read More
Romania at the front line of economic growth in 2013 - but will it catch up after the contraction in 2014?
Romania’s economic performance has made it one of the leaders in Europe’s recovery. Its growth has exceeded expectations, with GDP rising by 3.5% in 2013. Significant contributions came from the agricultural and industrial sectors, in particular from car production supplying mainly foreign customers. Although Romania will not continue this pace of growth in 2014, the outlook remains positive.Read More
Coface Romania conducted a new study on the Romanian insolvencies’ evolution, taking into consideration the newly opened cases registered within the Bulletin of Insolvency Proceedings for January - June 2014.Read More
The international credit insurance company Coface presents its sixth annual study on the Top 500 companies in Central and Eastern Europe – the Coface CEE Top 500. It ranks the 500 biggest businesses in the region by their turnover and additionally analyses further facts such as number of employees, the framework of the companies, sectors and markets.Read More
Coface Romania and The Bucharest University of Economic Studies will collaborate to develop a model for credit risk assessmentRead More
Coface, a world-leading credit insurer, is enriching its offer in Serbia through a local partnership with Axa. From now on, in addition to debt collection and business information services, Serbian companies can benefit from Coface’s longstanding expertise in credit insurance and its international footprint.Read More
Prior to the forthcoming presidential elections in August 2014, Coface is cautious in its assessment of corporate risks in Turkey. If political tensions rise again, as happened in December and January, investors may flee the country which could result in a fluctuation in Forex markets. Such a situation would negatively impact the corporate sector’s external debt stock, already at a record high.Read More
Affected in 2009 by a recession more intense than other European countries under the effect of a sharp drop in household consumption and investment, the British economy is currently distinguished by the strength of renewed growth (1.8% in 2013). Forecast at +2.7% in 2014 by Coface, it could be as dynamic as that of the United States and exceed Germany (2%).Read More
Coface expects a considerable slowdown of GDP in 2014 (at +1.3% in 2014, down from +2.5% in 2013), due to household consumption growing at a slower pace, investments losing momentum and a weak trade balance. Coface considers 2015 to be a turning point, boosting GDP in the medium term.Read More
Last period is considered problematic from a commercial point of view, under the auspices of declining sales of the analyzed firms, but this is not reflected in the financial performance of the companies, the IT sector registering a positive net result, according to a profitability rate of 1.75% of turnover.Read More
Stabilization of corporate overdue payments in Asia Pacific but new worries over slowing growth in China
According to the Coface survey of credit risk management in Asia Pacific, corporate payment experience in the region stabilized overall in 2013, with the exception of companies in Australia and China which saw a greater number of non-payments. Slowing growth in China remains a concern for corporates in other economies in the region in 2014.Read More
With comparable profiles in terms of entrepreneurial activity, Spain and France are following a worrying trend in terms of company insolvencies. However, SMEs1 in the two countries have evolved differently since the 2008-2009 crisis, and insolvency forecasts for 2014 further underline this divergence. SMEs are over-represented in insolvencies in France and still more so in SpainRead More
The Romanian sector of road haulage services - Significantly increasing revenues, but higher and higher losses
Last period was a very good one under the auspices of sales growth for the companies within the road haulage services sector, but this is not visible in their financial performances and overall the sector registered a net loss.Read More
Coface launches CofaPay, a new instrument for the analyses and monitoring the customers’ payment behaviorRead More
Having passed from the stage of Global Production Networks to Global Innovation Networks (which include the development of products and research activities beyond geographical borders), the electronics industry should now experience annual growth of over 3% through to 2017. With emerging Asia the new epicentre of electronics innovation, local companies are now counting on the internalisation of production and research.Read More
The first quarter of this year registered 5.929 companies in various stages of insolvency, down by 14% compared to the same period of 2013 when 6.910 insolvencies were opened, and down by 17% compared to the same period of 2012.Read More
Companies in the CEE region faced a challenging year in 2013: The already weak economic situation deteriorated and the household consumption decreased due to fiscal measures to tackle rising budget deficits.Read More
After 10 years of frenetic growth, the BRICS are slowing down sharply: for 2014, Coface forecasts growth of on average 3.2 points lower than the average growth these countries registered over the previous decade.Read More
Coface’s survey of corporate credit risk management in China, carried out in the fourth quarter of 2013, revealed that 8 out of 10 companies in China experienced overdue payments in 2013. The chemical, industrial machinery and household electric & electronic appliances sectors are at higher risk. Since credit facilities will remain tight in 2014, deterioration in corporate payments could lead to a significant ripple effect in China’s shadow banking market.Read More
Coface, global Credit insurer and the leading Information provider in Central Europe, enhances its on-line offer on relevant and up-to-date information on buyers and their environment. The Business Reports will now be available for 54 countries ranging from the USA via Germany to Turkmenistan and Qatar.Read More
Country Risk Conference 2014: In 2014, favorable risk trend in advanced economies but persistent tensions in large emerging countriesRead More
Although the number is down 3.5% considering the same period of last year, their rhythm has accelerated in the third quarter, given that the balance at the end of the first semester announced a 10% contraction.Read More
Being leader on the credit risk management market represents for Coface Romania a satisfaction and a challenge at the same time - to act responsibly towards both the environment and the society, where the company operates.Read More
Coface downgrades its credit risk assessment in three business sectors: chemicals, pharmaceuticals and automotiveRead More
Poland again ranked first, Hungary and Romania catching up and Ukraine dropping out of the Top 3 - Biggest companies with more turnover - but a sharp decline in profit - Economic region CEE: more inhomogeneos than ever - insolvency rate in the region almost tripledRead More
12,739 companies became insolvent in the first 6 months of 2013, with 10% less than in the same period of 2012Read More
Coface has noted an improvement in a number of advanced economies: Japan, Iceland, and Ireland. On the other hand, the contraction in activity, financial problems and above all growing political and social pressures are increasing risk in South Africa and TunisiaRead More
6,381 Romanian companies became insolvent in the first 3 months of 2013, with 10% less compared to the same period of last yearRead More
Excellent SME Certificate - the first Romanian tool that certifies performance, offered by the CCIB with Coface RomaniaRead More
As one of the largest and most dynamic industries in the world, with a total sales volume of 2,744 BEUR in 2011 (with 11.6% more than in 2012), chemicals industry confirms its position as one of the main engines of economic recovery.Read More
To better meet SMEs’ expectations and needs, Coface decided to support this segment that represents the economy’s force drive by developing two new products designed to protect the business and assess its partners.Read More
The only Romanian provider of integrated credit risk management services, Coface, announces the opening of its first regional office in Cluj-Napoca. With 16 years’ experience in Romania, Coface is now targeting the central-west part of the country, where it identified a high business potential and a significant segment of active companies.Read More
In an economic downturn, particularly in the Eurozone, Coface continued to increase its turnover, which totaled 1,571 MEUR (+1.4%). Premiums rose by 3.1% due to strong sales momentum despite the weak growth in customer activity.Read More
23,665 companies became insolvent in 2012, with 10% more than in 2011 and with 20% more than in 2010
During 2012 the insolvency proceeding was opened for a total number of 23,665 companies with 10% more, compared to the same period of 2011 (21,449 new insolvencies) and with 20% more, compared to the same period of 2010 (19,650 new insolvencies).Read More
A new quarterly publication of Coface, focuses on the sector risks in the world. The world economy is analysed by means of 14 business sectors in three large regions: emerging Asia, North America and the European Union. The analysis uses three original indicators – strength of turnover, financial robustness and credit risk – developed by Coface economists and drawn from the payment experience of companies observed and analysed by Coface underwriters.Read More