The other entrepreneurs preferred a more cautious approach, largely self-funding their operations.
“We use our own resources for funding. We’ve had profit margins of more than 10% ever year so it’s been easy for us to finance our business, to afford to make investments,” says Ioan Popa, owner of Transavia, one of the largest meat processors in the country.
“This has been our policy not only during the crisis years but also before that.”
Alba Iulia-based Transavia’s revenue stands 476 million lei (EUR108 million), while the debt ratio stands at only 16.5%. Its industry average is 76%.
The 100 largest entrepreneurial businesses in Romania have RON28 billion debt, RON57 billion revenue and RON41 billion total assets. Their average debt ratio is 66.6%, lower than the overall economy’s, 71%.
“We haven’t overcome the crisis yet and it will take a while before things even out,” says economic analyst Aurelian Dochia.
“The entrepreneurs have no appetite for investment, and banks have no appetite for lending. It used to be the other way round before 2008.”
(English version by Loredana Fratila-Cristescu)