There are a number of underlying market trends that, taken as a whole, are driving the CMS market in a positive direction.

Deregulation
Deregulation around Europe is raising competition as more companies join the market, especially in fi nancial services,telecommunication, energy and health care. Fierce competition means that companies are required to have the tools and knowledge to take greater risks and make faster credit decisions.

Higher household debt
Indebtedness among households and companies is increasing. Higher debt leads to stronger demand for credit management services. Among EMU countries, household and corporate debt increased by 71 percent between January 1,1998 and December 31, 2006, from EUR 4,912 billion to EUR8,383 billion, or by 7 percent. All indications are that this trend will continue, since interest rates are relatively low, consumers are confi dent about the future, easy financing is available, the range of consumer credits is growing and credit is increasingly replacing cash as a means of payment.

Basel II
The Basel II Framework describes new capital adequacy rules and regulations for banks and fi nancial institutions. One of the consequences of these rules is that companies in general, and small and medium-sized companies in particular, could see their credit ratings decline. This in turn will make it more diffi cult for them to obtain bank loans. To offset this trend and improve liquidity, companies will be forced to more professionally manage their capital flows.

Another potential result of the new capital adequacy rules is that banks may consider to sell off more of their underperforming credits. If this occurs, it will increase the supply of available debt.

Poorer payment habits
According to Intrum Justitia's European Payment Index of spring 2007, payment risks decreased in 16 of 20 countries compared to 2006. The average payment duration decreased from 59.2 days 2006, to 58.6 days of spring 2007.