Daily News for Energy & Environment

Romania: ELCEN, RADET, CEH and CET Govora, the biggest companies to file for insolvency in 2016

Electrocentrale Bucuresti (ELCEN), the Autonomous Company for the distribution of thermal energy Bucharest (RADET), Polisano SRL, the Hunedoara Energy Complex and CET Govora are the biggest companies, according to their fiscal value, which got into insolvency in 2016 according to the data announced by Coface Romania.

As a whole, the number of big companies, with fiscal value of over one million euro which got into insolvency last year are 333, dropping from 577 a year before.

Otherwise, according to Coface, the number of insolvencies was reduced in 2016 at a minimum for the last 10 years, 8,053 newly entered in this procedure with 21% fewer than in 2015.

On the other hand, ‘ the incidence of insolvencies is found among the companies with several employees, the dynamics being correlated, probably, with the very accelerated advance of the minimum salary in the economy over the last years,’ the report also mentions.

‘The minimum salary in the economy was increased 12 times in the last eight years and grew much quicker than the level of average productivity, its share in the gross average salary at the level of the economy growing from 27% in 2008 to 43% in 2016’ said Iancu Guda, manager services and head economist with Coface Romania.

Under these conditions, the number of work places reported by the insolvent companies in 2016 dropped only by 14% as compared to 2015 slower than the contraction of insolvencies.

 

 

 

Source: Coface Romania press release.

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