Coface:Over 4,000 insolvencies opened in Romania in first half of 2018

Nearly 4,200 new insolvency proceedings were opened in Romania in the first half of 2018, says a recent Coface study.

Coface Romania has conducted a new study on the evolution of insolvent companies in Romania, this time by considering the newly registered cases from the Insolvency Procedure Bulletin (IPB) during the first semester of the current year. According to the preliminary data published by the IPB and based on the Coface methodology, 4,199 new insolvency procedures were initiated in the first semester of the current year, down by 5% fewer in relation to the same period of the previous year, when 4,442 insolvency procedures were initiated.

Number of large companies with the turnover over EUR 1 M becoming insolvent registered a growth of almost 5%, reaching 189 insolvent companies in the first semester of the current year, study shows. Increasing insolvency among large companies is a systemic problem as they spread greater financial and social shock in the already highly polarized business environment. Although the number of insolvencies registered in the first semester of the current year is at the lower level of the last ten years, the losses generated to creditors is very high, close to the highest level in the last decade.

Number of jobs registered by insolvent companies in the first semester of this year is up by 35%, reaching almost 26,000 employees.

Source:RRA,Coface Romania.