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October 23, 2021
BUSINESS

Number of insolvent companies, down 10 pc in H1 2013



Nevertheless, constructions, the hotel and restaurant sector (HORECA) and transports are the sectors with the highest level of insolvency procedures opened, reported to the number of active companies, according to Coface Romania.
After 5 years of continuous growth in the number of newly opened insolvency procedures, the auspices of the year 2013 present us with an increase in the number of insolvency procedures of medium and large companies, while the number of the newly opened procedures for the current year continues to drop.
Thus, a number of 12,739 were in various stages of the insolvency procedure, at the end of June, thus registering a 10 per cent drop from the same period of the previous year, when 14,218 new insolvency procedures were opened, according to the data presented by risk assessment company Coface Romania, regarding the insolvencies evolution of the Romanian companies, nationwide, for H1 2013, a press release informs. In the reference period, nine companies with the turnover standing above EUR 50 M entered the insolvency procedure, among which Oltchim, Mechel, Dobrogea, Laminorul, Ecoforest, said Constantin Coman, Country Manager, Coface Romania.
Constructions, the hotel and restaurant sector (HORECA) and transports are the sectors with the highest level of insolvency procedures opened in the first six months of the current year reported to the number of active companies. The same sectors were included in the top five sectors with the highest values for this index in 2012, too, which points to the persistence of some structural systemic problems.
“The economic environment in the first half of 2013 proved to be one full of challenges and, despite the announced growth of 2.2 pc of the GDP, one can notice a deterioration of the situation of companies, especially of large ones. The lack of bank crediting has serious effects for the good functioning of the Romanian economy, so big companies were forced to take over this task and transfer more risk into commercial crediting. (…) I would characterise 2013 as a year of big insolvencies with a strong social and economic impact. Despite slightly higher confidence and positive macroeconomic indicators, especially due to exports and a good agricultural year, the economic environment still suffers and this can be seen in the very substantial share held by the debts of medium-large companies, approximately 49 pc, in the total debts of insolvent firms. 59 pc of the total turnover achieved by the companies that turned insolvent in H1 2013 was generated by medium-large companies,” said Constantin Coman, Country Manager, Coface Romania.
In the first half of 2013, at the request of business partners or in view of monitoring the direct exposures within the Commercial Loans Insurance Department, Coface Romania individually analysed 20,943 firms with a total turnover of EUR 109 bln, representing approximately 48 pc of the turnover of all active companies countrywide.
“We consider that the decrease of the number of new cases of insolvency opened during 2013 has only a statistic relevance, as the main reason for concern is represented by the insolvency of a record number of medium and large companies, which can propagate a negative effect through the economy much faster and more difficult to replace,” believe the analysts of Coface Romania.
S-E, S and N-V the regions with the highest number of insolvencies
The territorial distribution of insolvency cases in H1 this year did not experience important changes compared to a year ago. The worst hit three regions, in terms of the number of insolvencies registered in 2013, were S-E, S and respectively N-W, which together concentrate approximately 50 pc of the total insolvency cases opened during the period under analysis.
The only region where the number of insolvencies increased in the first half of the year, compared to 2012, is S-W, while the Center seems to have stabilised. The remaining regions registered decreases, with the most significant being in the West zone (26 pc). Worth mentioning, the West region registers only half the number of insolvencies of S-E, with a similar number of active companies in both regions.

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