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The financial stability of businesses has improved

12/ 08/ 2022
  Currently, 30% of companies claim that their financial reserves will be enough for more than a year, while in May it was 19%. Namely 48%, assess their financial stability to suffice for half a year, and another 16% – for a year. Only 2% of businesses report that their financial reserves have already been exhausted. These are the results of a new wave of business surveys conducted by the European Business Association.  All the companies we interviewed have already resumed their work. Of them, 49% resumed their activities in full, and 51% – partially. Among the companies operating partially, 44% had to reduce the geography of their activities, 20% had to close part of the offices or retail outlets, and 18% had to switch to online. The dynamics of salary payment by companies remain practically unchanged. Thus, 61% continue to pay the salary in full, and 28% do so with advance or additional payments. However, the number of companies reducing the pay rate increased to 21%, while in May there was 13%. At the same time, 7% of companies send staff on unpaid leave, and 10% had to resort to layoffs. Supporting the employees who have joined the Armed Forces remains the #1 priority for business in the context of activities that strengthen the Ukrainian defense and social sector. Thus, 46% of companies continue to be engaged in volunteering, namely, 40% continue to help with products, 34% – with finances, 17% – with medicines, 16% – with services, and 15% – with means of protection. Although these indicators are slightly lower than in the spring, they are still significant. Only 6% have exhausted their resources for helping the country. Unfortunately, business continues to experience losses with each day of the war. Thus, in 5 months of russian aggression, 41% of companies suffered losses of up to 1 million dollars, 32% estimated losses in the range of 1-10 million dollars, and 18% reported losses of more than 10 million dollars. Moreover, at least 38% suffered losses from hostilities directly. Of those companies whose assets were destroyed or damaged, half are still at the stage of documenting losses, 28% have turned to law enforcement agencies, and 6% have filed lawsuits in national courts. Only 8% of companies use state or international programs to support their activities. Namely, 5% use the option of paying a single tax of 2% and other tax benefits. Every fifth company that took part in the survey reports that it has branches, offices, or assets situated in the temporarily occupied territories. At the same time, 12% of businesses we surveyed reported that the hostilities forced them to relocate their office or production to another region within the country, and only 3% – abroad. For reference: The survey was conducted from August 3 to 9, 2022, and 102 CEOs of the EBA member companies took part in it.

Currently, 30% of companies claim that their financial reserves will be enough for more than a year, while in May it was 19%. Namely 48%, assess their financial stability to suffice for half a year, and another 16% – for a year. Only 2% of businesses report that their financial reserves have already been exhausted. These are the results of a new wave of business surveys conducted by the European Business Association. 

All the companies we interviewed have already resumed their work. Of them, 49% resumed their activities in full, and 51% – partially. Among the companies operating partially, 44% had to reduce the geography of their activities, 20% had to close part of the offices or retail outlets, and 18% had to switch to online.

The dynamics of salary payment by companies remain practically unchanged. Thus, 61% continue to pay the salary in full, and 28% do so with advance or additional payments. However, the number of companies reducing the pay rate increased to 21%, while in May there was 13%. At the same time, 7% of companies send staff on unpaid leave, and 10% had to resort to layoffs.

Supporting the employees who have joined the Armed Forces remains the #1 priority for business in the context of activities that strengthen the Ukrainian defense and social sector. Thus, 46% of companies continue to be engaged in volunteering, namely, 40% continue to help with products, 34% – with finances, 17% – with medicines, 16% – with services, and 15% – with means of protection. Although these indicators are slightly lower than in the spring, they are still significant. Only 6% have exhausted their resources for helping the country.

Unfortunately, business continues to experience losses with each day of the war. Thus, in 5 months of russian aggression, 41% of companies suffered losses of up to 1 million dollars, 32% estimated losses in the range of 1-10 million dollars, and 18% reported losses of more than 10 million dollars.

Moreover, at least 38% suffered losses from hostilities directly. Of those companies whose assets were destroyed or damaged, half are still at the stage of documenting losses, 28% have turned to law enforcement agencies, and 6% have filed lawsuits in national courts.

Only 8% of companies use state or international programs to support their activities. Namely, 5% use the option of paying a single tax of 2% and other tax benefits.

Every fifth company that took part in the survey reports that it has branches, offices, or assets situated in the temporarily occupied territories. At the same time, 12% of businesses we surveyed reported that the hostilities forced them to relocate their office or production to another region within the country, and only 3% – abroad.

For reference:

The survey was conducted from August 3 to 9, 2022, and 102 CEOs of the EBA member companies took part in it.

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