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Spain, among the top 15 countries in the world for ease of commercial debt collection capacity

MADRID, 22 Jul.

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Spain, among the top 15 countries in the world for ease of commercial debt collection capacity

MADRID, 22 Jul. (EUROPA PRESS) -

Spain ranks as the 11th country in the world where the complexity of recovery is lower, with a total score of 36 points and only behind Sweden, Germany, Finland, Holland, Portugal, Austria, Switzerland, Ireland, Belgium and France, according to the 'Allianz Trade Collection Complexity Score' report by Allianz Trade.

This study measures the complexity of debt collection in 49 countries, which represent 85% of international trade, setting a ratio for each country of between 0 and 100 points, with the lowest scores being for countries with the least complexity of collection.

However, despite holding this position, the payment behavior of the business fabric of Spain continues to be deficient. Thus, 57% of companies charge in terms longer than those established by law (60 days), with payment reaching 70 or 80 days on average.

Furthermore, due to the length of the judicial process, in Spain it is often preferable to carry out efficient and orchestrated collection efforts before considering taking legal action. "When the debtor has become insolvent, debt collection becomes extremely complicated, especially with regard to unsecured creditors," the report states.

However, the director of claims and recovery of Solunion Spain, Nieves Mendoza, has highlighted that the Administration has taken measures to help reduce non-payment times, "providing solutions to overcome the economic impact of the pandemic".

The ten countries that are above Spain in the ease of recovery are on the European continent, with Germany and Sweden being the countries with the best score (30 points), followed by Finland (32 points).

Behind Spain, in 12th place is New Zealand, ranking as the first non-European country in the ranking. With 43 points and in 20th place is Brazil, as the second non-European country in the ranking.

At the bottom of the ranking are Saudi Arabia (91 points), Malaysia (78) and the United Arab Emirates (72). Despite some improvements in judicial complexity, international recovery capacity is three times more complex in Saudi Arabia than in Sweden, Germany or Finland.

On this issue, the report highlights that the complexity of collections has been reducing in emerging markets over time, gradually closing the gap with more developed economies. Thus, during the last four years, almost half of the countries have seen their recovery complexity score decrease.

Among the reasons for this improvement is the outbreak of the pandemic, which gave new impetus to the public administrations of many countries to accelerate the reforms of their insolvency frameworks. However, despite this positive trend, international recovery remains very complex.