The economic situation is in stark contrast with the statements made by the Romanian authorities, Ioan Niculae, the owner of InterAgro and chairman of the Local Investors Forum, said in an interview with the Bursa daily. He mentioned the fact that over 17,000 companies have entered insolvency since the beginning of the year. “None of the tens of investors I have spoken with lately said that his business is flourishing, or that at least it is stable,” Ioan Niculae said. The InterAgro CEO underscored that all the investors are complaining about the lack of capital, the lack of cash flow, the lack of liquidities on the market and the lack of interest in buying industrial products. All banks have stopped lending, with one exception.
On the other hand, the situation at InterAgro is unprecedented, according to Ioan Niculae. “We see ourselves forced to impose radical measures as of October 1, we shall make no lay-offs only in one factory, as far as the rest of the employees are concerned we are planning collective lay-offs. About 5,800 people are going to be made redundant,” he pointed out.
According to Niculae, the 2013 agricultural year is good, as far as production is concerned, as the agricultural outcome is higher compared to last year. “Unfortunately, prices have dropped sharply. If the price of one tonne of corn was about 220-230 euros last year, it is very hard now to sell one tonne of corn for 110-115 euros. The situation is similar when it comes to wheat, sunflower and oilseed rape. In my opinion, in terms of value, the 2013 agricultural year is worse than last year.”