Number of Romanian firms filing for insolvency down 22% in 2019
The number of insolvencies in Romania decreased by 22% last year compared to 2018, to 6,384 (firms going insolvent either voluntarily or at the request of creditors), which is the lowest level in the past decade, according to a study…
Romania Insider · Journalist
· Updated · 1 min read
The number of insolvencies in Romania decreased by 22% last year compared to 2018, to 6,384 (firms going insolvent either voluntarily or at the request of creditors), which is the lowest level in the past decade, according to a study compiled by Coface Romania.
Most insolvencies were registered in the sectors of wholesale and distribution followed by construction and retail.
The number of medium and large-sized companies (revenues over EUR 0.5 mln) going into insolvency decreased to 444 in 2019 from the past three years’ average of 550. The financial losses caused by the insolvencies last year dropped to RON 4.6 billion (under EUR 1 bln), half the past three years’ average.
However, the data compiled by Coface reveals a number of vulnerabilities that put pressure on Romanian companies. Thus, the amount of payments not covered by funds in payers’ bank accounts (payment instruments refused by banks) increased by 67% compared to the previous year to RON 3.2 bln (EUR 670 mln).
(Photo source: ID 88550680 © Zerbor/Dreamstime.com)
