One in three Serbian firms seeking debt relief

After seven weeks of the coronavirus crisis, the impact of the lock down imposed to contain it is beginning to become clear. One in three companies has begun negotiations with creditors to postpone debt repayments, while one in five has ceased operations temporarily. However, despite the drastic reduction in services and production, 85 percent of companies have not laid off workers yet.

These are the results of a survey of 1,000 companies that was carried out recently by USAID and the Serbian Chamber of Commerce. Only 12 percent of the companies said they had achieved the same business results as before the crisis. The biggest challenge faced by the companies is the inability to cover costs and to collect receivables. Half of all the companies had employees working from home.