BUSINESS COMPANIES ECONOMY FINANCE&BANKING

Number of insolvent companies, authorized individuals rises by 5.55 per cent eight months into 2017

The number of insolvent commercial companies and authorized individuals rose by 5.55 per cent in the first eight months of this year, compared to the similar period in 2016, to 5,758 units, according to the data posted on the National Trade Register Office (ONRC) website.

Most of insolvent companies and authorized individuals are in Bucharest, 1,228 respectively, up by 10.33 per cent compared to January – August 2016.

Most insolvency cases were recorded in wholesale and retail trade, repair of motor vehicles and motorcycles – 1,732, down by 0.7 per cent.

Also, 10,043 companies suspended their activity (-13.52 per cent), and 18,185 were dissolved, a decrease by -16.34per cent.

Almost half of the active companies in Romania are at a high insolvency risk, according to a Coface press release issued recently to Agerpres.

“The significant high share of companies with high risk of insolvency is explained by the polarization phenomenon of Romanian companies, much more pronounced compared to what we see in Hungary, Poland or the Czech Republic. For example, the largest 10 per cent of the Romanian companies held, at end-2015, nearly 91 per cent of total revenues recorded by the entire business milieu, whilst this share is much lower in Hungary (72 per cent), Poland (68 per cent) or the Czech Republic (59 per cent),” the document reads.

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