Coface Romania: 57 pc decrease of Romanian insolvencies in the first half of 2015

Coface Romania conducted a new study on the Romanian insolvencies’ evolution, taking into consideration the newly opened cases registered within the Bulletin of Insolvency Proceedings for January – June 2015.
Coface’s analysis indicates that during the first semester of this year 5,524 new insolvencies were registered, down by 57% compared to the same period of 2014 when 12.862 new insolvencies were opened.
Despite the strong decrease of the insolvencies, the contraction is relevant only statistically, because the propagated negative impact within the economy is greater. Thus: Approximately 98% of the contraction is due to the decrease of the insolvencies within companies with turnover below EUR 100 K. At the same time, the decrease is also due to a significant basic effect (compared to a historical record registered in the previous year); Romania continues to register insolvencies expressed at 1,000 active companies four times higher than the average registered at regional level, with 45 insolvencies per 1,000 active companies, holding the leading position from this point of view. At the same time, the number of insolvency proceedings initiated in the first six months of the current year by companies with a turnover above EUR 1 M is 329, a level similar to 2014 figures; Thus, although the number of newly initiated insolvencies in the first half of the current year halved, the financial impact generated within the economy (estimated based on the value of debts not covered by assets) is +163% higher, and the social impact (estimated by the number of jobs that might be lost) is +9% higher.

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