| 20.9°C Belfast

Unpaid debt in Republic up 24%

Court judgments against companies in the Republic for the recovery of unpaid debt have continued to rise in quarter three — to almost €14m (£12.2m).

The figure marks an increase of 24% on the same period in 2009.

The strain being felt in retail was highlighted with the sector accounting for the largest number of court judgments (CJ) filed, total-ling €3.9m (£3.4m). This is |the first time since 2009 that construction has not been the largest offender.

Limerick companies statistically accounted for the largest value of judgments, including one of €3.5m (£3m). Dublin-based companies accounted for 25% of judgments at just under €3m. Fourteen counties saw an increase in the value of CJs compared to 2009. The statistics were released by ICC Information, part of the D&B Group. Paula Carney, head of risk management solutions at D&B Ireland, said court judgments are a serious indicator of a company’s financial situation and also of the economy’s health.

“It is essential businesses be more vigilant when extending credit and ensure that they are only dealing with creditworthy companies, therefore decreasing the likelihood of them incurring a bad debt,’’ she said.

Weekly Business Digest

Margaret Canning’s selection of the must-read business stories straight to your inbox every Tuesday morning

This field is required