Coface: Number of insolvencies drops in Romania, but financial losses go up

The number of insolvencies dropped by half in Romania, in the first half of the year, but the financial losses generated by these insolvencies in the local economy increased by 163%, said Iancu Guda, service director and senior economist of Coface Romania. The uncovered liabilities of the companies that entered insolvency in the first six months of the year exceed EUR 855 million, and almost 45,000 employees were at risk of losing their jobs. The drop in the number of insolvencies is mere statistics and has nothing to do with the evolution of private companies' payment behavior, according to Iancu Guda. The uncovered debts of the companies which became insolvent between January and May this year are 2.6 times bigger than those recorded in the same period last year. The number of jobs at risk is also 9% higher. editor@romania-insider.com