TIRANA, April 3
A recent survey conducted by the Albania Manufacturers Union (AMU) that aims at tracking sentiment shows that businesses and manufacturers are facing unprecedented disruption to daily operation and finance due to the COVID-19 that can force them to head-count reduction and failure to pay tax liabilities, Monitor magazine reported.
The survey reflects the views of 90 companies, mostly large businesses from a cross-section of industries such as food and beverages, construction materials, textile and footwear manufacturing, recycling, paper, metal, and plastics processing, etc. Most of the respondents say that without official support schemes, their businesses can’t resist more than a month.
According to the survey, the companies reported various issues related to imported raw material supply and declines in buying orders. According to them, this caused a lack of liquidity that could make it difficult to pay tax liabilities and employee salaries.
VIP Companies – 27%
Large Companies – 45%
Medium Companies – 28%
61% of companies surveyed said that sales in March declined with over 50%
5% of companies surveyed reported a 100% decline in sales during March
21% of surveyed companies expect a 100% decline in sales during April
63% of surveyed companies can afford to pay monthly salaries for March
18% of surveyed companies said that they cannot afford to pay March salaries
11% of surveyed companies said that they can pay salaries for two months
8% of the surveyed companies confirm that they can pay the staff for more than two months
70% of surveyed companies said that they are planning employee reduction
57% of surveyed companies plan to lay off 50%-90% of their staff
11% of surveyed companies said that they will lay off 100% of their staff
77% of the surveyed companies said that they have no liquidity to pay tax liabilities
Moreover, 64 percent of the surveyed companies said that in the current situation they can continue their business activities for one month. Only 13 percent of the surveyed companies said that they can continue their business activities for more than three months.
Meanwhile, only 10 percent of the surveyed companies said that they utilize 100 percent of their capacities.