Romanian insolvencies stand twice higher than the ECE average

Romanian insolvencies stand twice higher than the East-Central Europe (ECE) average, according to the data presented this Wednesday by Coface representatives.

“2017 brought 8,256 new insolvency procedures, an year-on-year growth by 3 percent. Despite the minimum from the last 15 years, Romania still has an average level of 2.4 percent of insolvent companies out of 1,000 active firms, meaning close twice over the ECE average. It’s more important thus to evaluate the size of insolvent companies, from the financial losses perspective due to the creditors and the number of lost jobs. From this perspective, 2017 registered a certain stability of the insolvent companies with revenues of over EUR 1 million, respectively 326 firms, compared with 333 in 2016,” says the source.

Despite this, the representatives of the company say that the insolvent firms produced the creditors losses of RON 9.6 billion, an year-on-year growth by 13 percent, respectively RON 8.5 billion. On the other hand, the number of jobs from the insolvent companies in 2017 reached 47,578, by 32 percent lower than in 2016.