Rising currencies could hit Irish businesses

IRISH businesses will be hit by rising currencies and bad debts, according to a survey of exporters.

A survey for the Institute of International Trade of Ireland found that because many Irish firms are dealing in non-euro transactions they are at risk of losing out to fluctuating currencies. The institute’s president, Jim Somers, said less than half of Irish firms are carrying out transactions in euro.

“Most disturbing is the fact that 10% of those surveyed do absolutely nothing to manage foreign exchange risks,” he said.

The survey also found many firms are being hit by late payments, with 90% of companies experiencing difficult in getting paid. Some 40% of respondents experienced non-payment, with 14% claiming the resultant loss of revenue reduced export turnover by between 5 and 10%.

“Given the alarming statistics about credit risks from non-payment there is a surprising and disturbing lack of risk management in many firms,” Mr Somers added.

Most firms rated the services poor and said the quality had declined from the previous year.

Fewer than 20% rated the support level as good. One of the main reasons for the negative perception is the lack of information on export matters from Government agencies - only 44% reported receiving any information during the year.