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January 23, 2022

ONRC: Insolvencies up 47%, suspensions by 133%, in January

The number of commercial companies and authorized individuals in insolvency rose in January by 47.07% compared to January 2017, to 753, according to the data posted on the website of the National Trade Register Office (NTC).

Most of the companies and PFAs in insolvency are in Bucharest, 163 respectively, up 60.07% compared to January 2017. The capital city is followed by Bihor County, with 68 (+100%) and Timis County, with 43 cases (+86.96%). Most insolvencies were in retail and wholesale trade, repair of motor vehicles and motorcycles – 216, up 50%.

Also, 2,472 companies suspended their activity (132.99%) and 3,089 were dissolved, on the rise by 142.08%.

Insolvencies in Romania remain at twice the level in the Central and Eastern European (CEE), according to the data recently presented by Coface officials.

The losses caused to creditors by insolvent firms in 2017 amounted to 9.6 billion lei, up 13% year-on-year, or 8.5 billion lei. On the other hand, the number of jobs reported by insolvent firms in 2017 amounts to 47,578, by 32% lower than last year.

The three major mistakes of the companies that defaulted on their payments are poor financing of investments, the wrong investments and the aggressive dividend policy.

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