Bankruptcy surges 50% in Romania

Competition

Bankruptcies in Romania surged 50% in the first six months this year, local Financial Weekly reported Monday.

More than 95% of the Romanian firms face delayed payments of debts from clients, the weekly cited Coface Romania’s managing director Cristian Ionescu as saying. According to several surveys, companies in Romania are eager to insure their tangible assets, such as properties and equipment, but they neglect to insure more volatile assets like the clients’ debts, which account for about 40% of the overall current assets, said Ionescu, whose company is a credit insurer. Nearly half of the total bankruptcies are resulted from other bankruptcies, such as bankruptcies of business partners, Ionescu said.

Coface Romania estimated that about 15,600 firms will go bankrupt in Romania this year, up 50% over 2006. Last year, a total of 10,431 companies in Romania were registered as bankrupt, of which trade was the most risk-prone sector, accounting for 37% of the total bankruptcies, according to a survey conducted by Coface Romania in March. (people.com.cn)

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Startups