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finances

Many bad bills to pay

Published lördag 16 oktober 2010 kl 13.14
Niklas Égels Zandén, researcher at Gothenburg School of Business, says that it is unacceptable that municipalities do not pay their bills on time

Swedish municipalities are bad at paying their bills in time, reports Swedish radio news.

According to a comparison of the ten biggest municipalities (in terms of population) and the top ten businesses (in terms of turnover), the local authorities had 50 times as many black marks on their credit histories.

A private individual with this kind of credit history would often have difficulty in borrowing money, getting an apartment of even getting a telephone line. But for local authorities there are no such penalties.

Gunnar Björkman is the head of the financial department at Stockholm city. He says that the reason for the late payments is that the city is such a large and decentralised organisation, with 8,000 'cost centres' that pay out.

"it all takes time, which is an explanation, not an excuse" he says..

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