As a consequence of late payment by B2B customers, 45% of suppliers surveyed in India reported they had to take specific measures to correct cash flow.
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The economy still has room to absorb the oil price slump, but a long-term period of low oil prices would hurt. Economic diversification is on the agenda.
A moderate economic rebound is expected in 2016 and 2017, given that the domestic security situation will not again hurt tourism and business sentiment.
As the oil price decrease has a negative impact on government revenues and lending conditions, many businesses face liquidity issues and payment delays.
Poor payment practices of B2B customers caused financial distress on businesses in Western Europe and a ripple effect throughout the whole supply chain.