The crisis that struck Cyprus over the past six years has led to a noticeable change in the behaviour of Cypriot companies, a study carried out by Infocredit Group shows.
“This is evident from the significant decrease in the number of bounced cheques, as well as from the rise in the number of voluntary liquidations, which show a gradual increase over the last 6 years, reaching a peak in the year 2015,” Infocredit, the Nicosia-based provider of commercial and credit information, said in an emailed statement on Friday on the occasion of the release of its “6-year overview and analysis of Cypriot companies”.
According to the report, the change in the behaviour of Cypriots companies is evident in the dramatic drop of dishonoured cheques, which fell from 4,327 in 2010 to 1,542 in 2015, after peaking at 4,753 in 2012. The value of the cheques that bounced also fell in to below €2m in 2015 from €7.4m in 2010 and a €7.8m peak in 2012.
“The drop in the value and number of bounced cheques is likely to be attributable to uncertainty and market reluctance to accepting cheques as a means of payment,” Infocredit said.
Infocredit said that while the number of registered companies rose in 2013 almost 15 per cent compared to 2010, “the events of 2013” led to a 7.5 per cent drop in 2014 and 9.5 per cent in 2015.
The drop in the number of registered companies was mainly on an increase of companies which were “dissolved or written off” to 30,094 in 2014, which is ten times as much as in 2010, and more than four times compared to 2013, Infocredit said. The number of voluntary liquidations gradually increased to 2,113 in 2015 from 750 in 2010. The number of company bankruptcies on the other hand fell last year to 126 from 171 in 2010 and a peak of 189 in 2013.
“Even though the number of new registrations of overseas companies has decreased considerably in the last 15 years, the numbers show a minor increase from 2010 until 2012, reaching 94 additional registrations and then drop again in 2013 to 77,” Infocredit said. “In 2015 the number of new registrations dropped even further to a record low of only 71 new registrations”.