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Insolvencies in Romania down in 2020 

Banking

Photo by totoran.bogdan / Shutterstock.com

In 2020, 5,564 new insolvency proceedings were opened in Romania, 13% fewer registered in the previous year, reported the reported news portal Romania Journal, citing a study by Coface Romania.

Last year also reported the minimums of the last decade in terms of payment incidents (RON 2.2 billion, -29% vs. 2019) and the regeneration ratio in the business environment. All these positive developments are exceptional, given that they were recorded in a year with the most severe economic contraction of the last decade in the context of the COVID-19 pandemic.

The financial losses caused by insolvent companies in 2020 were almost RON 3 billion (EUR 615.3 million), 5 times below the corresponding level of 2015 and the lowest in the last 10 years. At the same time, the number of jobs reported by insolvent companies during 2020 is below the 20,000 thresholds for the first time in the last decade.

Also, there is a gradual decrease of insolvent companies with revenues over EUR 500,000 (medium and large), only 301 companies in 2020, compared to 444 in 2019.

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