This year’s insolvency affects businesses by 200 pc more than in 2015

The businesses affected by insolvency in the first months of 2016 are 200 percent higher than those affected to the same period last year, according to Casa de Insolventa Transilvania (CITR) data, a press release informs on Thursday.

This although in the first five months of this year, the number of companies impacting the economy that became insolvent fell by 9 percent, compared to the same period last year.

Agriculture and animal husbandry, industry (production) and real estate activities are the main areas affected by insolvency in the first half of 2016, according to the analysis on companies of impact in the economy (companies with fixed assets exceeding EUR 1 million).

In the same period of 2015 the main areas affected were services, construction and trade.

The beginning of the year was marked by the insolvency of large companies or groups, such as the Interagro Group, STG Steel, Prospectiuni SA, Sity International, CET Govora.

During this period, 95 companies with fixed assets of over EUR 1 million became insolvent, compared to 104 in the same period of last year. Other 133 large companies have submitted applications for insolvency this year.

“At the moment we believe it is important to draw a warning to big companies, but also to everyone who looks at decreasing statistical number of insolvency proceedings, but not at the true dimension of the impact phenomenon. Each business or field of activity has its own peculiarities,” Andreea Cionca-Anghelof, managing partner CITR stated.

Among the studied companies 32 percent (by turnover) are active in trade, 23 percent in services and 22 percent in construction.