More Romanian Companies To Go Bankrupt This Year - Coface

"The insolvency trend will remain upward in 2011 as well. There are no premises for a stimulating economic environment. Companies that have struggled to stay on the market will not survive," Thursday said Anca Catrina, credit risk manager at Coface Romania.

According to Coface data, there were 15,442 companies dubbed insolvent in the first nine months of 2010, with construction, retail and transport sectors topping the chart.

Cristian Ionescu, Coface country manager for Romania, Bulgaria and Slovakia, said there will be some "resounding" bankruptcies this year.

Romanian trade registry data shows the number of companies dubbed insolvent last year reached 21,692, from 19,894 in 2009.

On the other hand, Coface representatives noted a decrease in the number of overdue payment notifications, which points to stability in the evolution of payment incidents.

"Payment delays are still frequent, but they can be controlled through correct credit management. Compared to 2009, the number of cases notified in 2010 dropped by 60%, and their cumulated value fell 75%," Coface data shows.

According to the company, liquidity remains low, but receivable volumes grow due to arrears found throughout the supply chain.

"In 2011, we are expecting a gradual improvement in sales and profitability for companies, since costs have already been reduced. There will be new opportunities for procurement, investment and mergers," Coface representatives said.

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