ICAP: Business recorded huge losses between 2008-2014

ICAP: Business recorded huge losses between 2008-2014

Athens, May 19, 2016/Independent Balkan News Agency

By Spiros Sideris

Vast are the losses suffered by the company of the ‘real’ economy during the financial years 2008-2014, as evidenced by the ICAP Group’s analysis on the performance of Greek enterprises in 2014.

As shown by the aggregates of all companies with published balance sheets from 2008 up to 2014, under which formed Grouped balance sheets for each year, the total of Greek companies (except banks) lost more than ⅓ of its assets, while not total equity of companies shrank.

Impressive was also a decline in overall activity since the cumulative loss in total turnover reached staggering amount of € 67 billion. (-30%), Leading to a deterioration in profit margins and excessive losses (26 billion. Cumulative from 2010-2014). In fact, according to the ICAP Group, this figure does not include the 60 billion. damage had banks 4 financial years.

Of course, the analysis of the figures shows that the individual sectors of activity affected to varying degrees and some of them returned to profitability.

Commenting on the survey results, the CEO of ICAP Group Mr. Nikitas Konstantellos said: “The Greek economy is experiencing a multiple painful way adjustment in recent years. After a long period of recession, the Greek economy showed weak signs of recovery in 2014 and early 2015, however, developments were subsequently reversed, resulting in GDP is still on a downward trajectory. Within 6 years of intense crisis, the Greek Enterprises, operating in a particularly adverse environment, received a heavy blow. As follows from the analysis of ICAP Data Bank data, the losses suffered by the “real” economy companies in the financial years 2009-2014 were enormous.

It is significant that all Greek companies (except banks) lost more than ⅓ of their assets, while not total equity of companies shrank. Impressive was also a decline in overall activity since the cumulative loss in total turnover reached staggering amount of € 67 billion. (-30%), leading to a deterioration in profit margins and excessive losses (26 billion in total from 2010-2014). This number does not include the EUR 60 billion damages the banks had in these 4 financial years. Of course, the individual sectors of activity were affected to varying degrees and some of them returned to profitability.

The Greek economy has the ability and perspective to return to growth, despite adversity. But at this stage the intense uncertainty due to the protracted negotiations of the country and its partner lenders, cancels any recovery prospects. A prerequisite for a return to normality is meeting the commitments and reaching a direct agreement with the Lenders in order to restore financial stability and ensure smooth flow of credit in the market, which would allow the Greek Enterprises to decisively contribute to the exit from the crisis and the growth of the Greek Economy”.