In 2006 the EPI was conducted in 22 countries, and a total of 9,000 companies and authorities responded. The results are summarized in an index that shows the relative payment risk in each country. The survey is an effective tool to compare payment habits between markets and regions. The EPI report and detailed country reports provide companies and organizations with a reliable basis for decision making and effective benchmarks between companies and countries.

The complete index can be downloaded from http://www.europeanpayment.com/

Intrum Justitia's annual European Payment Index shows that payment risks continue to rise. The slowest payers are in the public sector, while consumers generally pay faster. Moreover, payment habits vary greatly by country and region.

Late payments are a problem for the entire economy. Many companies, organizations and public authorities pay late as a cheap source of financing. Usually they are exploiting their size to delay paying SMEs. The result is that small companies may face a serious liquidity crisis, which can lead to slower economic growth.

The survey shows that payment delays increased from an average of 15.1 days in 2004 to 16.8 days in 2006. The value of the increase alone is estimated at EUR 25 billion, or the entire GDP of Luxembourg.

The map to the right shows the European Payment Index for individual countries. The higher the index number, the higher the risk. An index value of 100 indicates an absence of payment risk, which usually means payments are in cash. In general, countries in northern Europe are better at paying than countries farther south.

Compared with the previous year, countries in southern Europe and the Baltic states noted the biggest improvements. The decline for the European index as a whole was mainly due to lower figures in France, Germany and the UK. Of the four largest economies, only Italy reported a lower risk.

The worst payers were in the public sector, which on average delayed payment by nearly 70 days. B2B payments took an average of nearly 60 days, while consumers were the fastest payers, at 42.5 days, or more than 27 days faster than the public sector; see the diagram below.

Intrum Justitia would be happy to help if you require any further support or information. Please send an e-mail to public-relations.epi@intrum.com. To download latest reports of European Payment Index and other related products, please visit www.europeanpayment.com.