CHINESE TERMS OF PAYMENT EXTENDED

A new report from credit insurer Coface suggests terms of payment between companies in China are continuing to be extended. The "Corporate Credit Risk Management in China" report said that increased market competition was forcing companies to grant credit by extended terms of payment to their customers. According to Coface: "This tense financial situation leads to a worrying increase in overdue accounts. Rising raw material prices and the recent freeze on bank credits could make the situation worse in 2008." Coface's report also revealed thatoverdue accounts that are now more frequent, with 90% of companies questioned facing them. Of those 20% have overdues of more than 60 days.