SIMILAR ARTICLES

AOAR – Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy

The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult

“We are working on a tax amnesty mechanism”: announcement made by Minister of Finance

Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that “a mechanism of this type is in progress”, a mechanism on tax… Mai mult

Fitch confirms Romania’s rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability

Fitch Ratings confirmed on Friday Romania’s rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult

Refusal to work annuls entitlement to social assistance – bill voted in Chamber of Deputies

Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult

Corruption offenses – decriminalised, if committed for someone else’s benefit: PSD draft approved in Legal Committee

Deputy Catalin Radulescu (foto) received a suspended sentence in 2016 to one year and six months of imprisonment The Legal Committee of the Chamber of… Mai mult

Number of insolvencies increased by 12% in first five months. Suspended activities – plus 31%, dissolutions – plus 59%

de Adrian N Ionescu , 2.7.2018

The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same period in 2017, up to 3,686, according to the data of National Trade Register Office (ONRC).

Although the rhythm declined in May (from over 17% in the first four months of the year), Romanian insolvencies remain well above the average of Central and Eastern Europe (CEE). In February, Romania’s figure was twice as high, according to Coface data.

“Champions”

Bucharest surpassed Bihor county, which was the leader in the company and PFA insolvencies in the first four months with 737 cases registered (plus 2.50% over the same period in 2017), according to Agerpres data.

Counties that follow:

  • Bihor – 237 (plus 22.16%),
  • Iasi – 213 (plus 4.41%) and
  • Timis – 181 (plus 27.46%) – also at the top of the ranking in the first four months.
  • In May alone, 721 firms and PFAs went into insolvency.

Trade is still the most crowded field with insolvencies (including the repair of motor vehicles and motorcycles), with 1,130 (plus 13.68%), of which 226 only in May.

The rhythm of activity suspensions increased by 30.81%, to 8,364 companies between January and May 2018, down from + 35% over the first four months. There were 1,406 activity suspensions only in May.

Dissolutions increased by 59.49% over the first five months, to 15,751 businesses, of which 3,098 were recorded in May.

Phenomenon

2017 brought 8,256 new insolvencies, up 3% compared to 2016, when 8,053 new procedures were registered.

Romania recorded an average insolvency rate of 2.4% per 1,000 active companies, which means almost twice the average of the Central and Eastern Europe, according to Coface.

“In this context, it is more important to assess the size of insolvent companies, in terms of financial losses caused to creditors and the social dimension, because of the jobs lost. From this perspective, 2017 saw a certain stabilization of insolvent companies with revenues above EUR 1 million, namely 326 companies, compared to 333 in the previous year,” according to the source mentioned.

However, losses caused to creditors by insolvent firms in 2017 amounted to RON 9.6 billion, up 13% year-on-year, or RON 8.5 billion.

On the other hand, the number of jobs reported by insolvent companies in 2017 amounts to 47,578, 32% lower than in the previous year.

The three major mistakes of companies that have suspended payments are:

  • poor financing of investments,
  • wrong investments and
  • an aggressive dividend policy.
Mergeți în homepage ›

Publicat la data de 2.7.2018

Lăsați un comentariu


NEWS

Fitch confirms Romania's rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability

Fitch Ratings confirmed on Friday Romania's rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult

"We are working on a tax amnesty mechanism": announcement made by Minister of Finance

Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that "a mechanism of this type is in progress”, a mechanism on tax… Mai mult

AOAR - Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy

The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult

Number of insolvencies increased by 12% in first five months. Suspended activities - plus 31%, dissolutions - plus 59%

The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same… Mai mult

Transport infrastructure in Romania needs EUR 70 billion - double as compared to existing resources

The investment needs in Romania's transport infrastructure exceed EUR 70 billion, while the available resources by 2030 are EUR 36 billion, according to the Transport… Mai mult

Refusal to work annuls entitlement to social assistance - bill voted in Chamber of Deputies

Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult

Subsidy of RON 900/month for employing a graduate based on contracts of indefinite duration

The National Agency for Employment (ANOFM) grants subsidies of RON 900/month to employers who employ graduates of educational institutions, with contracts of indefinite duration, within… Mai mult

C.P. Tariceanu, before the heads of Senates from EU: The European Commission has encouraged the parallel state, in Romania it is like in the 50's

Calin Popescu Tariceanu (foto) delivered a very tough speech on Friday, in the Senate, addressed to the European Commission, which he accused of encouraging the… Mai mult

National Bank of Romania wants to lower indebtedness limit in granting loans to individuals

The National Bank of Romania (BNR) sent to banks for consultation a draft amending Regulation 17/2012, which provides for a consistent lowering of the indebtedness… Mai mult

High impact provisions: Senate has adopted PSD-ALDE amendments to the Code of Criminal Procedure

Senators adopted on Wednesday the draft for amending the Code of Criminal Procedure, by 74 votes for to 28, against. The bill goes to the… Mai mult

RBL: Workforce crisis is worse than economic crisis - 3.4 million Romanians have left the country in last 10 years

Migration is one of the most serious problems facing Romania at this time, along with the lack of infrastructure. However, the return of Romanians to… Mai mult

World Bank: Romania's economy could grow by 5.1% in 2018

Romania's economy could grow by 5.1% in 2018, according to the World Bank summer forecast. The estimate has been improved by 0.6 percentage points above… Mai mult

Ministry of Energy: Natural gas from Black Sea will be exported through Onesti - Isaccea - Negru Voda network

The Ministry of Energy issued for Transgaz the construction permit for the consolidation of the transport system between Onesti (Bacau) and Isaccea (Tulcea) and for… Mai mult