Some 7,000 Romanian companies owe EUR 15 bln to the state budget

Companies in Romania continue to pile up debts to the state budget, although pressure on cash flow has decreased compared to the first quarters of the crisis and the managers' confidence in the economy is growing, according to CITR, the leader of the restructuring market in Romania.

Over 7,000 Romanian companies have debts of over RON 1 million (EUR 205,000) to the state budget.

The aggregate value of their outstanding debts amounts to RON 73 billion (EUR 15 bn, or over 6% of GDP), shows an analysis made by CITR based on data from Termene.ro.

Two-thirds of these companies are in insolvency or bankruptcy. Meanwhile, some 2,600 of the companies with debts to the state budget can still act preventively to recover their activity.

They can resort to the GO6 procedure, especially created by ANAF to stagger the main debts and erase debts and penalties related to these debts to the state budget.

"We are at a turning point, which will determine the evolution of the business environment for the following years, and debts can be an impediment for the development of companies, which can be eliminated by accessing the GO 6 procedure. Companies can choose whether to act from limitations and constraints that come with them in the following years, and here we refer to debts to the state budget, or choose to access a preventive restructuring measure that would diminish this burden and help them prevent insolvency," said Vasile Godinca-Herlea, Head of Business Development Impetum Group and Managing Partner CITR.

The Government expects this year's budget revenues to be pushed up by the companies that have deferred their dues to the budget after the crisis hit the economy in 2020.

(Photo: Mattwatt/ Dreamstime)