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Romania posts the largest decrease in the number of insolvencies in CEE in 2015, Coface shows

Coface Romania’s Anicescu: ‘We are not ready for a recession’

Coface specialists confirm what World Bank (WB) has shown in its latest report that the domestic economy is over potential at this moment and it is projected to continue to grow in 2018.

“Romania has reached some limits with the economic growth of 7 percent, and at some point it will be certain that we will face an economic recession that we seem not to be ready for,” Eugen Anicescu, Country Manager of Coface Romania said on Wednesday during Country Risk Conference.

According to him, it is more important that Romania manages to maintain reasonable growth rates over time rather than going in jumps, with the amplitude the country has known in the past.
“I believe in stability, not necessarily being the world’s first economic growth,” Coface Romania official noted.

According to Anicescu, Romanian companies do not look better than in 2007, and on the basis of the 2016 balance sheets, they collect their claims in 104 days, compared to 60 days. Also, in 2016, they had a lower capitalization rate of 28 percent, compared with 35 percent in 2007.

“These data show that we are not ready, it seems, for the next recession,” Country Manager of Coface Romania noted.

About Anca Bernovici