Vasilescu (BNR): 40% of 600,000 companies have debts higher than their capital

About 40% of 600,000 Romanian companies that present annual reports have debts higher than their assets, from loans that are not made to banks, says Adrian Vasilescu, strategy consultant at the National Bank of Romania (BNR).

“Banks are responsible for many things in economy, but they are also financing centres for economy. We have 700,000 companies in Romania, but 100,000 of them do not have annual reports. Therefore they do not exist, What is happening with them? Only God knows. 40% of the 600,000 that present annual reports have debts higher than their entire fortunes. Debts do not come from banks. Half of those companies have losses instead of profits. So we draw the conclusion that company owners have attracted many funds from economic activities without being registered and have money to lend their own companies which have debts less to banks and more to their owners,” Vasilescu explained.

The BNR councillor participated in the 3rd edition of the Conference “Romania’s development strategy” with the topic “Between euro zone and leu zone”, an event organized by Bursa press group on Wednesday.

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