Local industry and constructions are becoming increasingly vulnerable, according to an analysis of CITR, one of the biggest insolvency management groups in Romania.

Some 54% of the total assets of the companies that have filed for insolvency this year come from the industry sector whereas 15% of them come from the construction sector, reports local Agerpres.

About 120 companies with assets of over EUR 1 million had insolvency requests in courts at the end of February. These companies had 20,000 employees, more than half of them working in industry. Their cumulated turnover totaled over EUR 1.5 billion.

Local banks also have difficulties because the market is crowded and the market shares are often too small to be profitable at a competitive level. Large banks will continue to strengthen through mergers and acquisitions whereas banks that can’t continue their activity can transfer their assets or resort to insolvency, according to CITR.

editor@romania-insider.com