A total 5,144 firms went insolvent in the first eleven months of 2020, 11% fewer than in the same period 2019, per Trade Register data. According to ZF estimates, which consider an average 500 firms filing for insolvency each and every month, the total number of insolvencies in 2020 will not exceed 5,600 companies.
“I expect an increase in insolvency numbers in 2021, first of all, as a base effect because this year, we shall see the lowest insolvency level of the last ten years,” stated Eugen Anicescu, country manager at Coface Romania, a company specialized in company risk analysis.
For over 700,000 companies in Romania, 2021 will be the moment of truth, especially since Coface data show that only 80,000 firms in Romania are bankable at present, and the local business environment remains extremely fragile.