ECONOMY FINANCE&BANKING

Number of insolvent companies, 4 times higher than CEE average

With the same pessimism and lack of confidence in the country’s economy and in the Romanians’ entrepreneurial spirit, the representatives of Coface Romania have presented to a group of journalists the “disaster” that exists and will persist among companies. More precisely, we are talking about the fact that the rate of insolvencies in Romania was 4 times higher than the average level in Central and Eastern Europe (CEE), namely 45 in every 1,000 active companies went insolvent. Moreover, Coface Romania experts consider that around 90 per cent of insolvent companies do not survive the process.

According to Coface Romania representatives, at this rhythm the country’s economic structure should be more than fragile.
The paradox is that the comparative insolvency data used is copied (let us not say plagiarized) from the statistical data of Vienna-based Coface CEE.
In recent weeks, the statistical data of big rating agencies and international macroeconomic assessment bodies have emphasized that a friendly economic environment has been instituted in our country and that, on this basis, Romania’s GDP growth projections are among the highest in the EU in 2015 as well as in 2016 and 2017. Despite these analyses, which are at least just as qualified as Coface’s, the Romanian offices of Coface France present a more than unfortunate picture of the country’s microeconomic situation. In addition, the picture, as well as Coface Romania’s unwritten opinions, is in a flagrant discrepancy with Romania’s economic reality.

A single glimmer of hope, but not from Coface Romania: the number of companies that became insolvent in the first nine months of this year stood at 7,575, down by 54.62 per cent year-on-year, according to the data recently published by the National Trade Registry Office (ONRC).

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