Coface Romania Study: Insolvencies in Romania decreased by 22% in 2019 compared to previous year, reaching its lowest level over the last decade
The majority of insolvencies were registered in the wholesale and distribution sector followed by the constructions and retail sectors
The most recent Coface Romania study shows that in 2019 there were 6,384 insolvent companies, -22% less compared to the level registered in the previous year. The data also indicate a gradual decrease of insolvent companies with revenues over EUR 0.5 million (medium and large companies). The latter reached 444 companies during 2019, below the average of 550 over the last three years. This evolution was also reflected in the decrease of financial losses of only RON 4.6 billion in 2019, half of the average for the last three years.
The active business environment situation in Romania
Coface analysis also reveals a number of vulnerabilities that put pressure on the Romanian companies. The amounts refused to pay with debit instruments during the year 2019 amounted to RON 3.2 billion in total, with 67% increase from the previous year, respectively RON 1.9 billion. The number of companies that interrupted their activity in 2019 increased to almost 160,000, the maximum of the last decade. At the same time, the number of SRL companies newly registered last year remained relatively close to 90,000. In other words, for each new company established in 2019, there were almost 1.8 companies that interrupted their activity, compared to the OUT: IN ratio of 1.6 in 2018.
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