The Romanian economy lost around EUR 3 billion and 80,000- 90,000 jobs in the first half of the year due to insolvencies, according to a study by Coface.

For the first time in the last eight years, the social and economic effects caused by insolvencies have diminished. The number of insolvencies continued to go up, but more new companies were registered during this period, the Coface study shows, reports local Hotnews.ro.

An insolvent company doesn’t necessarily have profitability problems but liquidity problems. Romania currently has 23 insolvent companies per 1,000 active firms, triple compared to the regional average. Only Serbia has higher insolvency rates.

editor@romania-insider.com