Belgian businesses sitting on €240 billion cash

Businesses in Belgium have cash in hand of at least €240 million, which they are on the verge of investing, according to a study by the consultancy Deloitte. B-information, which collects financial data, delivered findings to Deloitte that show, according to 2013 tax returns, that the business world is sitting on a mountain worth €222 billion. Taking the remainder of undeclared companies into account, the total will certainly exceed €240 billion, Deloitte said. 

Last year, companies paid out €485 billion to shareholders – €139,000 for each business on average, considerably higher than in 2012 (€113,000) and almost as much as the record in 2007, pre financial crisis, at €140,000.

Deloitte surveyed European business leaders as to their intentions for the cash. Seventy-seven percent said they would maintain some liquidity, while 60% said they were prepared to make investments in the coming 12 months. “We have reached a turning point,” according to Deloitte managing partner Olivier de Groote.

Investments are likely to be in new markets, training personnel, new technology and mergers or partnerships, said Deloitte. Among Belgian companies, export markets were a major attraction in the short term for 60%, in particular the Asian-Pacific and Latin America.

photo: Ingimage