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January 17, 2022

2013, the year of big insolvencies

The judiciary administrator of Hidroelectrica, Remus Borza expects 2013 to be a year of big insolvencies, especially in industry, as banks will no longer be able to roll down the bad loans because of the poor performance of the economy. “There is no hint about a significant economic growth, so nobody can afford to roll down loans and make provisions. Banks kept rolling down the loans and hiding arrears. Because of this, 2013 will be a year of big insolvencies, especially in industry. Moreover, insolvency gained confidence and many started seeing the benefits of this operation,” Borza, the owner of the Euro Insol company which administers businesses worth EUR 6 bln, said for Mediafax. Insolvency is a viable solution for overcoming financial troubles, he mentioned, adding that all the companies managed by him are profitable. In the first 11 months of last year, the number of companies that became insolvent decreased by 1.7 pc compared to the similar interval of 2011, when 15,410 companies could no longer pay their debts, according to the National Office of the Registry of Commerce.In a separate move, Hidroelectrica rented 3,200 square metres of office space in the Tower Center International building located in Piata Victoriei Square. It thus becomes the first tenant of the building that was finalised several years ago, but made the object of litigations between developer and financer.

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