Insolvency firm: two of three Romanian firms face financial constraints each month

Two out of three companies in Romania face financial problems every month, and more than 90% of them do not have the financial capital to withstand a financial blockage of more than 2-3 months, according to insolvency firm Sierra Quadrant.

The causes of this record number of companies with problems relate, on the one hand, to the effects of inflation and, on the other, to the poor capitalization of the business environment, the firm explains, according to Economica.net.

The financial disintermediation and higher taxation under the fiscal package expected to come into force next year come on top of the challenges seen this year: continuing decrease in industrial activity and more moderate private consumption.

According to Trade Register data consulted by Sierra Quadrant, 82,261 companies were in difficulty, in various stages of insolvency, de-registration, suspension of activity or dissolved at the end of August – 17,585 more compared to the figure reported at the end of H1.

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