The significant difference is also because the government injected lots of money into the economy in the first months of the pandemic – March – May 2020, to keep businesses afloat, so companies sat and waited. Only 72 companies went insolvent in April 2020 compared with 600 in April 2021.
Insolvency was a widely used solution by companies during the previous crisis, more than a decade ago. The crisis caused by the COVID-19 pandemic could lead to a new surge thereof.
June saw two major insolvencies for the Romanian economy – the largest competitive electricity supplier Getica 95 and bookstore chain Diverta. Diverta went insolvent a second time, after experiencing insolvency during the previous crisis more than a decade ago.
Trade Register data show most businesses to go insolvent operated in wholesale and retail trade, car and motorcycle repair (932), construction (509) and processing industry (384). Hotels and restaurants ranked fourth (264).
(English version by Loredana Fratila-Cristescu)