“2016 is the first year that marks a major contraction in insolvencies among big companies, which translates into a lower financial impact. (…) Romania has more than two companies that cease their activity for every newly-registered company,” said Eugen Anicescu, Coface Romania country manager.
Only 333 companies with a turnover of over EUR1 million went insolvent in 2016, a ten-year low on this segment of companies.
Bucharest and the northwestern region registered the largest number of insolvencies.
“The business sector is entering a new construction stage. It is important for the business environment to remain stable, so that it would have a good liquidity,” Anicescu added.
The number of jobs reported by the companies that went insolvent in 2016 only fell 14% compared with 2015. The average number of employees for each insolvent company remained at the same level as in the last two years, namely 16.
Most insolvencies were reported among businesses operating in textiles, constructions and the hospitality industry.
The top five largest companies with a turnover of over EUR1 million that went insolvent in 2016 were Electrocentrale Bucuresti, Radet, CE Hunedoara, Polisano and CET Govora.