Mish Moved to MishTalk.Com Click to Visit.
Lack of significant improvement in payments by IBEX companies to suppliers is yet another sign there isn't much of a recovery in Spain.
La Vanguardia reports Late Payments by Ibex Companies Hits €47 Billion, 169 days (nearly 3 times the legal time limit). Ibex is the name of the Spanish stock market exchange.
Via translation from La Vanguardia.
Delinquency of the Ibex 35 exceeds 47 billion euros and the average payment is 169 days late, almost three times the limits set by law, according to the latest report of the Platform Multisectoral against delinquency (PMcM), made from the data published by the National Securities Market Commission (CNMV).IBEX vs. DOW
In 2012, the average payment of listed non-financial corporations was 191 days, while in 2013 totaled 184, down 4%.
Construction and real estate had a 10% improvement. Trade and services improved 4%. Despite this improvement, the data shows that the construction sector and real estate remains the one with the greatest delay in settlement of bills. Their average payment reached the 288 days in 2013, while in 2012 exceeded 300.
Behind them are trade and services, with 253 days, nine fewer than in 2012.
PMcM president, Antoni Cañete said that "these data show that some of these big companies are financed at the expense of their own providers, mostly SMEs and freelancers". "This situation, is produced by the dominant position of Ibex companies, shows abuse and violation of the law, "added Cañete.
La Vanguardia notes that in the DOW, the average collection period of industrial companies is 105 days, followed by service and trade at 70 days and energy at 60 days.
Mike "Mish" Shedlock