”Active microenterprises in Romania are more vulnerable to shocks, thus, a potential slowdown in the financing process and higher financing costs will significantly impact their survival. The new tax on banks’ assets may trigger a decline in newly granted loans, which may put additional pressure on companies in 2019. Thus, a higher risk of insolvency for small firms amplifies the polarization of the business environment,” Anicescu also said.
The payment behavior of companies in Romania has started to deteriorate lately, therefore, in 2018, the number of companies closing their doors grew 3% year-on-year.
“Considering the existing risks and, in the context of higher financing costs, firms must constantly monitor the risk of existing partners and be very careful about the analysis regarding the new customers (…)“, said Iancu Guda, Services Director with Coface Romania.