Credit conditions tighten

  • 2009-09-17
  • From wire reports
RIGA - Many foreign companies consider their Latvian customers as high-risk and now require them to pay for goods in advance, reports news agency LETA. "The large amount of negative news about Latvia, as well as the country's low ratings, are the main reasons why such foreign insurers as Euler Hermes and Atradius refuse to insure contracts with Latvian companies," said KMM Metals chairman Maris Niedra.

KMM Metals cannot buy commodities and pay for them later, as it used to do, regardless of how long and successfully it has cooperated with suppliers, says the chairman.

Latvian Construction Supplies Traders Association President Martins Artins said that the prices for construction supplies have stabilized, though not only foreign suppliers, but local stores, don't want to take any risks, and store customers often have to order the supplies and pay full price in advance.