"Arrears" in the Russian Enterprise Sector
This paper offers an analysis of payment arrears in the Russian enterprise sector, using both official aggregate data and data from a World Bank survey of 439 large and medium industrial Russian enterprises conducted in mid-1994. The focus is on trade credit arrears, tax arrears, and wage arrears (a companion paper discusses bad bank debts in detail). Among the findings of the paper are: contrary to the standard view of an ongoing "inter-enterprise arrears crisis" in Russia, levels of trade credit arrears in Russia are compable to those found both in other transition countries and in Western market economies; trade credit arrears and inflation are closely inversely correlated, the likely reason being that when macro policy is being tightened, firms try to create liquidity by extending payment periods; basic credit control mechanisms are in wide use by firms; and financially-distressed firms raise the priority of paying suppliers and lower the priority of paying taxes, with the result that tax arrears are significantly concentrated in financially-distressed firms. The paper concludes with a discussion of policy options.
Year of publication: |
1996
|
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Authors: | Alfandari, G. ; Schaffer, M.E. |
Institutions: | Centre for Economic Reform and Transformation, School of Management and Languages |
Saved in:
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