Indebtedness rate rose to 123% in 2014, from 76% in 2008 la, while average revenue fell by nearly 5.3% in 2014, without proper expense adjustment, so that the consolidated losses rose 7.9%.
“Last year, 577 companies with a turnover exceeding EUR1 million entered insolvency, and two of them, Ambient Sibiu and Domo Retail, had a turnover of over EUR100 million,” said Eugen Anicescu, Managing Director, Coface Bois-Colombes Bucharest.
Coface has kept the country risk assessment for Romania to B, a risk class indicating an unstable macroeconomic environment, capable to affect a company’s historical payments.
“Romania remains vulnerable due to the structural character of internal imbalances on microeconomic level through the high level of trade credit, through the extremely high interdependence between companies, by interrupting accelerated activity for many companies and the high level of rejected payment instruments,” Anicescu said.
Coface also estimates that Romania’s economy will grow by 4.2% in 2016, if agriculture stays at the same level as in 2015.