Coface Sees No Of Bankruptcies In Romania Up 20% YY In 2010

The number of Romanian bankruptcies might increase by 15%-20% in 2010, from 19,000-19,500 cases last year, with a sharper growth in the first half, risk management company Coface officials said Wednesday.

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According to Trade Registry data, at the end of 2009, there were 690,000 companies and 344,000 registered sole traders in Romania.

The most affected sectors in 2010 would be the real estate, the IT equipment distribution, furniture, textile, transport and retail sectors, due to the lending restrictions, among others, said Cristian Ionescu, the general manager of Coface for Romania, Bulgaria and Slovakia.

Ionescu said banks would not resume lending this year, as they would analyze the companies based on 2009 results, which "look disastrous". Lending activity might be 1-2% higher this year, but it might as well decrease, he said.

The number of bank debtors rose 56% in 2009, at 700,000.

Ionescu said the debt collection level might hike this year if the companies' liquidity is improved, which, in its turn, might be determined by a turnover and financing increase.

Coface France is a rating agency set up in 1946. In Romania, Coface has been operating since 1996.

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