280,000 companies in Romania face a high insolvency risk over COVID-19 epidemic

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Over 280,000 companies in Romania are currently at high risk for insolvency, according to a survey conducted be Termene.ro, a platform that provides updates in real time on the financial and legal data of the companies in Romania.

The study also reveals that, at this moment, 40 percent of the companies continued their activity, 37pc reduced it and 23 closed their operations due to the COVID-19 pandemic.

27,000 companies have a medium insolvency risk, 146,000 have a low insolvency risk, while 223,000 firms have a very low insolvency risk.

The fact that the share of companies facing insolvency is on the rise due to the Coronavirus outbreak is bringing into the limelight the concept of an affected payment conduct. So, there are premises that at least one third of the companies based in Romania is prone to bankruptcy on medium and long term, said Adrian Dragomir, co-founder Termene.ro.

The survey found out that the number of employees on unpaid leave, in technical unemployment or fired is on the rise in this period, with over 1 million employees currently risking to be out of work in Romania.

At the same time, a significant share of the companies that continue their activity (50%) will be cautious in making investments.

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