50,000 Israeli companies at risk

Most companies have taken aggressive steps in response to the crisis, while also cutting costs.

May 7, 2009 07:43
2 minute read.
50,000 Israeli companies at risk

closed sign 88. (photo credit: )


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Despite early signs of a recovery in the economy, the number of companies whose business activities are under threat rose to 50,000 in April, according to Business Data Israel's monthly risk index. "Over the last two weeks, we are experiencing the first signs of some kind of recovery in the economy," Eyal Yanai, co-director of Business Data Israel, said Wednesday. "However, it does not mean that the economic crisis is over. The most recent data shows that the business-risk level is still on an upward trend for nearly a year. Businesses are still suffering from a liquidity crunch as they are having difficulties to raise credit necessary to continue their current business activities." The majority of companies have taken aggressive steps in response to the crisis, such as efficiency measures, while also cutting investments and costs, he said. The average weighted risk level in the economy in April rose to 6.38, up from 5.81 during the same month last year and 6.25 during March. The number of businesses at high risk increased in April compared with the previous month. Out of the total number of companies analyzed by BDI economists, 50,000, or 25 percent, were rated as highly risky and dangerous, with an average weighted risk level of 9 and 10, up from 20% in March. BDI economists said these businesses were suffering from great liquidity problems, reports of bouncing checks, and big losses in revenues and profits. The great level of difficulties faced by these companies and businesses would threaten the continuation of their business activity for the coming year or two, they said. Nearly all of the four riskiest sectors experienced a worsening in business risk in April compared with the preceding month, with a business risk rating of more than 7. The restaurant and cafes sector was rated the riskiest in April, with a business-risk rating of 7.30. Haulage services was the second-riskiest sector, with a business risk rating of 7.04. The tourism and hotel sector was third, with a rating of 7.03. The business-risk level in the construction sector was 6.97 in April, up from 6.87 in March. The paper and carton sector had the highest rating in April, with an average business-risk level of 5.33, followed by the chemicals sector, at 5.45, and the cosmetics and pharmaceuticals sector, at 5.62. Year-on-year comparisons showed the biggest deterioration in the business-risk rating for the textile, clothing and shoe sector, at a rate of 13.4%. The biggest improvement on a year-on-year basis was found in the communications sector, which improved at a rate of 2.5%.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection