Insolvencies in Romania still double compared to CEE average

08 February 2018

The number of insolvencies per 1,000 companies in Romania remains double compared to the average in the Central and Eastern European (CEE) region, according to financial consultancy group Coface.

Some 8,250 new insolvency procedures were registered in Romania last year, up by 3% compared to 2016, when 8.050 companies went into insolvency.

The number of insolvencies remained close to a 15-year low, but the rate of insolvencies per 1,000 active companies is 2.4%, about double the CEE average, according to Coface.

Insolvencies continue to cause damages to the economy. Thus, the losses caused to creditors by insolvent companies amounted to over EUR 2.1 billion in 2017, up by 13% compared to the previous year. However, fewer employees were affected by their employers going into insolvency in 2017, namely 47,500, down by a third compared to 2016.

Poor investment financing, bad investments and aggressive dividend policies are the three major mistakes of the firms that went into insolvency last year.

editor@romania-insider.com

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Insolvencies in Romania still double compared to CEE average

08 February 2018

The number of insolvencies per 1,000 companies in Romania remains double compared to the average in the Central and Eastern European (CEE) region, according to financial consultancy group Coface.

Some 8,250 new insolvency procedures were registered in Romania last year, up by 3% compared to 2016, when 8.050 companies went into insolvency.

The number of insolvencies remained close to a 15-year low, but the rate of insolvencies per 1,000 active companies is 2.4%, about double the CEE average, according to Coface.

Insolvencies continue to cause damages to the economy. Thus, the losses caused to creditors by insolvent companies amounted to over EUR 2.1 billion in 2017, up by 13% compared to the previous year. However, fewer employees were affected by their employers going into insolvency in 2017, namely 47,500, down by a third compared to 2016.

Poor investment financing, bad investments and aggressive dividend policies are the three major mistakes of the firms that went into insolvency last year.

editor@romania-insider.com

Normal
 

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