The dynamics of insolvency does not truly reflect the current economic context, characterized by a relative stability and significantly influenced by the international economic instability. The dynamics of insolvencies is mainly determined by structural factors, such as the decreasing number of active legal entities in the last three years ans the selection of less competitive firms during recession, Iancu Guda, macroeconomic analyst at Coface Romania, said in a press release Wednesday.
According to a Coface survey based on data from the national trade registry ONRC, some 4,414 Romanian companies were facing insolvency procedures in the first quarter of the year, down 34.65% compared with the same interval a year before.
The sectors that registered the highest decrease in insolvencies are the metallurgical industry (- 49.49%), the car and equipment industry (- 52.70%), health and social assistance (- 50%).
The highest number of insolvencies was registered in the construction and commerce sectors, with 54.94% of overall insolvencies.
Some 645 insolvencies were registered in the construction sector in the first quarter of the year, down 40% compared with the similar interval a year ago.
Counties Brasov, Constanta, Iasi, Botosani, Harghita and Covasna saw the most significant decrease in the number of insolvencies, while counties in southern Romania were the most affected, with 955 companies facing insolvency.
The number of insolvencies hit 19,651 in 2011, down about 10% on the year.