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Coface: two thirds of the Romanian business are in the hands of 1% of the companies
Almost two thirds of the income of companies in Romania (275 billion euro as a total) are made by 1% of the companies, sign that the economy is polarised, shows an analysis of the company for risk and analysis Coface.
‘For the big companies it is easier to survive the legislative changes, as an example the pole tax or the flat tax. The high cost of work force and the fiscal instability affects the small entreprises mostly. The SMEs are in general the most vulnerable’ the economic analyst Laurian Lungu says, according to ZF.
The risk is major, as insolvency at the top can destabilise a complete sector and can draw different insolvencies.
He explains the fact that getting out of the market or the insolvency of a big company such as OMV Petrom,Automobile Dacia or Kaufland could destabilise the whole business environment in the context where OMV Petrom contributes with 5% to the general consolidated budget income. ‘ It is a similar situation with that of General Motors in the 30’s – 40’s in the US and then GM was seen as a company with systemic risk. Moreover, such companies have in Romania a big impact on the GDP’.
At the level of the whole economy the Coface analysis showed that one out of two companies has major risk to get into insolvency. The Coface analysts show the fact that the very high share of the companies with high risk of insolvency is explained by the phenomenon of polarisation of the Romanian companies, more accentuated by comparison to what we see in Hungary, Poland or the Czech Republic.