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Problem of late payments
in Malta ‘immense’
by Ivan Brincat
The problem of late payments in Malta has reached immense proportions
and there is no other country which has such long-term debts,
parliamentary secretary in the Ministry of Economic services
Edwin Vass-allo told The Malta Business Weekly.
Business practices are now slowly being changed. In the past
there was a problem of overtrading which had firms resorting
to barter agreements thus creating a cash flow problem.
“The systems which have now been introduced and which include
selling on a cash and carry basis or cash on delivery basis
will ensure economic success,” Mr Vassallo said.
The parliamentary secretary said businesses have now learnt
their lessons. “Decisions taken which might not have led
to good results have forced businesses to stop resorting to
barter and to ensure they are paid for the services or goods
delivered,” Mr Vassallo said.
The government has set up a call centre in the Small Business
Unit to receive suggestions and complaints.
“The aim behind this is to ensure that businesses do not
waste time. This service never existed before but we had to
set it up because inefficiency costs money,” Mr Vassallo
said.
The publication of a report on the problems faced by the small
and medium enterprises confirms that the government is tackling
the problems facing by this sector of the economy. “There
is a lot to be done but today we are aware of those situations
which could lead to problems for businesses.”
Malta is preparing for entry into the European Union and the
country must make sure that it has a business sector which is
more competitive. “We cannot strive alone. Habits and practices
have to change and they are changing,” Mr Vassallo said.
He said those in businesses are using this transition period
to review the way they operate their businesses and also the
manner in which they take decisions.
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