Faktory pôsobiace na mieru zadlženosti slovenských podnikov
FACTORS IMPACTING THE DEBT RATE OF THE SLOVAK COMPANIES

Summary/Abstract: In general, the average value of the ratio of liabilities to assets of Slovak companies is currently very high to compared with the companies in developed market economies. In view of still relatively high interest rates this high debt is a big financial burden for companies. Moreover, the volume of long-term loans for companies is very low and a great number of companies are facing liquidity problems. The limited possibilities of companies to finance their activities have a negative impact on investment and the process of restructuring of Slovak companies. The objective of the article is to define and explain main factors that might have impacted the financial structure of Slovak companies, and on that basis to identify the main conditions for financing as well as to specify microeconomic conditions to be fulfilled so that the financial situation of Slovak companies can improve. Attention is paid to both (1) macroeconomic, legislative and institutional factors and (2) company-specific factors. The macroeconomic, legislative and institutional factors that are dealt with in the article include inter-company transfer of insolvency, a great volume of loans granted in the privatisation, the lack of free financial sources in the Slovak economy, high risk of investment in companies, not properly functioning financial market, high interest rates, low return on equity, as well as the lack of long-term loans. On the basis of these factors the framework conditions are identified to be fulfilled in order the unfavourable financial situation of Slovak companies can start improving. These conditions include macroeconomic stability, restrictive fiscal policy, support of foreign direct investments, dealing with the growing liquidity problems of companies and their extention over companies, improvement in the willingness of companies to meet their financial obligations, declaration of bankruptcies of financially weak compa-nies or application of alternative instruments (e. g. capitalization of receivables), en-hancement of liquidity and transparency of secondary markets for assets, improvement of the legal position of a creditor, better protection of legal rights of minority sharehold-ers, and sol-ving the problems of banking sector and improvement of liquidity and transparency on the capital market.

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