In 2020 number of impact of companies in imminent insolvency at highest level in last years

The number of impact companies in imminent insolvency (6,654)  was in 2020 at the highest level in past years, but the big difference between the number of companies in imminent insolvency and of those who accessed insolvency or financial restructuring (293) indicate the existence of a high number of companies in difficulty that do not access restructuring measures, according to a study made by CITR specialists.   That level can be compared to that of 2013, when the number of imminent insolvencies was the highest in history, as a result of extended effects of the 2008 financial crisis, the source points out.   According to the study, companies in difficulty represent 45% of impact companies, the percentage remaining  constant for 7 years and only 1% of impact companies in imminent insolvency succeed to get better.   The most prominent causes, although meant to help even the businesses on a long run, were the very measures adopted at international scale for the attenuation of the Sars-Cov 2 virus impact on the people. They had a significant impact on economy in Romania especially in the second quarter, by the temporary stop of operations in the processing sector, the limitation of the people's circulation with major impact in fields like the transport of people, tourism, services, a press release shows.   The analysis shows there are market studies which cancel the idea of a wave of insolvencies generated by the pandemic: a 15% increase of the number of insolvencies is expected to grow at world level, compared to 2021, but that means only a return to the level considered normal before the pandemic.   Another conclusion of the CITR study is the fact that only 1% of companies in imminent insolvency in 2020 succeeded to be financed by their own methods. The study had in view companies which went from  imminent insolvency in 2019 to fanciable companies in 2020.   The analysis indicated the fact that this passage  was due to internal measures of restructuring or capital loan from shareholders, measures very difficult to be implemented in conditions of the entrepreneurs' lack of experience in restructuring techniques and in the conditions of an acute lack of capital for investments in companies in difficulty. State companies make no exception, about 30% of impact companies being in difficulty. Although there are companies which showed opening toward the prospects of restructuring, such as Romaero or CFR Marfa, more positive examples are needed, CITR specialists say.   The analysis also mentions that in the context of an unprecedented crisis,EU intends to stimulate companies with financial difficulties to resume activity, to facilitate access to restructuring measures at the first signs of difficulty. The 7th edition of the study has 2020 as reference year, an atypical year full of challenges and new situations facing economy in recent history.