RSS
Coface : over 11,000 Romanian companies reached insolvency over the first 6 months of 2010
11,221 of companies in Romania were in insolvency during the first quarter of this year. More exactly, 6,255 companies were in the general procedure of insolvency, 2,235 in simplified insolvency, 2,717 in bankruptcy and 14 judicial reorganization, according to a study made by Coface Romania.
The number of companies in insolvency is increasing by 7.5% against the same period of last year, when there were 10,435 files.
In the study made by Coface Romania there were taken into discussion companies which started bankruptcy procedure, companies in judicial reorganization and companies for which the bankruptcy procedure was closed due to the lack of assets, irrespective of the starting year.
Commerce, constructions and transports were the most affected of the sectors
The extension of economic recession made that the four positions in the ranking of insolvencies to stay unchanged and during the first part of 2010, the domains of commerce ( retail, distribution and wholesale), constructions and transport remaining the most affected by the financial crisis with a percentage of 50%of the insolvencies; these domains were the most accessible to those who start a business over the last years due to the investments reduced and high yields.
Important increases of the number of insolvencies were recorded in the textile sector, metallurgy, real estate, entertainment, transport, constructions and services, the Coface representative said. Agriculture is a domain where it increased from 372 to 537 over the first part of 2010. However, agriculture could become a attractive domain for foreign investors due to the dropping prices on agricultural lands, the soil quality and vast lands insufficiently exploited to the moment. The accession of European funds for the development of agriculture is an option viable for the strengthening of this domain. The stimulation of producers and the implementation of an efficient system of trading for domestic produce could positively influence the evolution of the companies in agriculture.
The surest domains are : extraction, health and social assistance, production and supply of electricity, water and gas
The domains with the lowest share in the total of insolvencies over the first part of 2010, are activities in extraction, health and social assistance, production and supply of electricity, water and gas. The essential characteristic of those sectors is the fact that access is restrictive due to investments, and the number of players limited.
Most affected counties : Braila, Salaj, Calarasi and Botosani
The territorial distribution of insolvency is rather uniform as compared to 2009. Out of the first 10 counties only Bucuresti and Arad kept their positions ; Bucuresti is first with 12.5% of the total of insolvencies, and Arad – 9th with 2.94% of the total.
The number of insolvencies in Braila increased four times against the same period of last year and almost two times against the end of 2009, when the county had 111 and 239 respectively companies in insolvency, which showed a rapid deterioration of the economic situation in the county.
Significant increase was recorded in Salaj, Calarasi and Botosani, counties which advanced 25, 20 and 18 places in the top of insolvencies, being situated in the first part of the ranking.