The Coface report is based on data from the Romanian Trade Registry. In the first half of 2013, the number of insolvency procedures opened in Romania stood at 13,855.
“Considering an average of the past ten years, the number of insolvencies opened in the second half of the year stood at 80%-85% of the level registered in the first half. Should this dynamic continue in the second half, it is likely we will see a maximum of 23,000 insolvencies this year,” Coface Romania general manager Constantin Coman told a news conference Wednesday.
He added this level would translate into a 15% drop in the number of insolvencies compared to 2013.
“However, we must consider the impact of the new insolvency law, effective as of June 2014, which is difficult to estimate ,” Coman added.
The number of insolvencies increased in the first half of the year in Bucharest (+23%) and in the western region (+8%), while the rest of the country posted decreases, the most significant of which were in the south-east (-23%) and north-east (-22%).
Insolvencies among companies with turnover of more than EUR1 million have dropped 30% in the first half.
While the number of insolvencies dropped 10% in the first half, the number of newly opened businesses dropped by 24%.