Philippe Zamaron, vice-chairman of the board of management at Eurofactor in France spoke to BCR to explain why Eurofactor has suffered a substantial drop in profit into the red.
He attributed the decline to lower turnover of factoring business as a whole within Eurofactor and an increase in company bankruptcies that in turn required provisions for increased risk.
Eurofactor, the factoring subsidiary of French credit-insurance group Euler & Hermes saw its profits plunge into the red, down from a profit of Ђ5.7million in 2001 to a loss of Ђ4.5 million in the first half of 2002.
He said “More specifically for Eurofactor it (the decrease in profit) results from a fall in short-term interest rates, a reduction in clients’ turnover, a reduction in clients’ requirements and period of financing, and a trend towards confidential or non-notified factoring for which margins are lower.”
