RSS
Study: only 3% of the total of the Romanian companies represent the engine of the domestic economy
Only 3% of the total of the Romanian companies represent the engine of the domestic economy and half of them are in difficulty, shows the third edition of the study CITR Group regarding the evolution of the impact companies between 2013 and 2015.
The number of these impact companies is dropping, from 23,384 in 2013 down to 19,564 in 2015, says the study. Although the 19,564 impact companies represent only 3% of the total of the companies in Romania they generate 68% of the turnover cumulated at national level and hire 41% of the work force existing in Romania. The number of employees in these 19,564 companies dropped between 2013 and 2015 and thus approximately 19,000 work places were lost. Approximately 36% of the impact companies have profitability between 0% - 5%, a level too little to support degrees of indebtedness over 70%. Even so, 39% of the companies with profitability with reduced level have an indebtedness of 70 – 100%.
If the trend for contraction of the impact companies is kept, the whole economy may be affected by contagion. All this, in the context where Romania cannot generate sufficient new entrepreneurs so that they compensate for the imbalance in the Romanian business, CITR says.
The study shows that, for at least three years, we have assisted to a paradox of the Romanian economy, despite the biggest rate of growth in Europe, the domain of insolvency is very active and troublesome. Only in 2016 the total debt of the 314 companies under analysis and in insolvency were of 2.4 billion euro, which is the equivalent of approximately 1.5% of the GDP. At numeric level, the rate of the healthy companies versus companies with problems (in different degrees of difficulties) is almost equal.
According to the CITR Group study, the impact companies were divided in financeable, restructurable and insolvable.The number of the first increased, the following went down, and the insolvable almost half.
The study about the impact companies in Romania covers the interval between 2013 to 2015. The companies were analysed by taking into account the end-of-year financial balances . In the study there were included companies with total assets of over one million euro and not in insolvency. The analysis includes companies owned by the state, but does not include non-governmental organisations, banks, insurance companies, brokerage companies and pensions funds, whose financial situation is different from the other companies.
CITR is a company of specialists in insolvency, with activity of over 16 years and portfolio of over 850 projects which manages at present a statement of affairs of over four billion euro and a heritage of over 650 million euro.