Bankruptcy of local partners, among issues for German, Austrian, Swiss investors

The bankruptcy of local business partners is one of the most frequent problems for German, Austrian and Swiss investors in Romania, according to consultancy and audit firm LeitnerLeitner. The biggest difference between most of the Romanian companies and foreign investors is the fact that local firms have reduced costs by initially cutting staff, while foreign investors have analyzed their product portfolio first and their costs, before making a decision for optimization, according to René Schöb, partner with LeitnerLeitner. The increasing bureaucracy and the lack of flexibility from local fiscal authorities related to tax collection, along with the lack of advice on finance and liquidities for the local management are among the problems the company's clients have been facing, according to LeitnerLeitner. The company see potential for foreign investments in agriculture and in production for the FMCG sector. And although the real estate market is dropping, it remains interesting for investors, along with the health care system, according to the consultancy firm. Romania-insider.com