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11/12/2013
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The recent trend of insolvencies and their numerical evolution show a relative stagnation…

Insolvencies Study

According to the final data published by BPI and based on Coface methodology, during the first nine months of the current year, 18,321 new insolvencies were initiated, with approximately 3.5% less compared to the same term of the previous year, when 18,991 new insolvency proceedings were initiated.

The opening rate of these proceedings accelerated during the third quarter, while the balance at the end of the first quarter showed a 10% contraction.
Probably one of the reasons was the companies' decision to accelerate this process, in relation to the imminent amendment of the Civil Procedural Code.

 

…BUT WHAT LURKS BEHIND THE FIGURES? THE NEGATIVE EFFECTS ARE SIGNIFICANT AND WILL IMPACT THE PRIVATE ECONOMY!

In the current context, the numerical evolution of the newly insolvency proceedings becomes relevant solely from a statistical point of view, even though in Romania the phenomenon is a mighty one, under the circumstances of a 20% or even 30% decrease. The numerical evolution can be expressed both in absolute and relative values, in relation to the practice of other European countries.

The recent accelerated rate of insolvencies will most likely determine a level for 2013 comparable with the one registered in the previous year. Most alarming is that, in 2013, we will obviously register a record number of insolvencies within medium and large companies. The number of companies with a turnover higher than 1 MEUR, which became insolvent during the first nine months of 2013, is around 523, compared to a level of 331 insolvencies from the same category registered during the same period of the previous year. Chapter three details all the issues related to this risk.

For further information regarding the evolution of insolvencies in Romania, we invite you to browse the entire study.

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Emilia MUSCALU

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Email: emilia.muscalu@coface.com

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