Acasă » General Interest » Economics&Markets » CITR: More than 7,000 companies have debts over RON 1 million each

CITR: More than 7,000 companies have debts over RON 1 million each

3 March 2021

According to CITR, in 2021, companies that want to overcome the crisis and move to the next stage of development must be prepared to anticipate changes and invest in solutions that would help them better manage the risks. Although pressure on cashflow has fallen compared to the first quarters of the crisis, to 15% according to Confidex study, debts to the state budget continue to pile up.

After two years of economic growth and one year of pandemic, more than 7,000 companies have debts over RON 1 million each, according to Their total value amounts to RON 73 billion and 66% of them – or more than 4,600, are in insolvency or bankruptcy, but haven’t resorted yet to a recovery procedure.

These 7,000 companies ensure over 130,000 jobs that could be saved by accessing in a timely manner the preventive recovery measures or through a reorganization measure.

According to CITR restructuring specialists “in 2021 companies must be willing to make deep changes in how they do business, redesign their strategies, change the markets where they operate, adapt their products and productions processes, review their expansion and development plans.”

”At a time when the tendency is to streamline and reduce costs as much as possible, the winners will be those that will innovate, will invest in digitization and in the development of human resources capabilities and will be willing to resort to recovery mechanisms and act preventively.. Adaptability and the power to anticipate changes and manage risks are key to prevention for Romanian companies,” said Andra Olar-Caragea, CEO of CITR.

Also, 2,600 of companies with debts to the state budget are companies that can still act preventively to recover the activity and can resort to the GO6 procedure, especially created by ANAF to stagger the main debts and erase debts and penalties related to these debts to the state budget.

“We are at a turning point, which will determine the evolution of the business environment for the following years, and debts can be an impediment for the development of companies, which can be eliminated by accessing the GO 6 procedure. Companies can choose whether to act from limitations and constraints that come with them in the following years, and here we refer to debts to the state budget, or choose to access a preventive restructuring measure that would diminish this burden and help them prevent insolvency. A company that has escaped the burden of debts can adapt better to changes that occur in the business environment, is more flexible and more agile, better prepared for the future, no matter how unpredictable,” said Vasile Godîncă-Herlea, Head of Business Development Impetum Group and Managing Partner CITR.

By accessing GO6, companies can recover with the help of a budgetary debts reorganization plan, which can mean the staggering of main debts to the state budget and reduction by up to 50% of the main debt, but also erasing interests and penalties owed on December 31, 2020. Another important advantage is keeping control over the company, the management right not being lifted in this procedure. At the same time, with the submission of the recovery plan, budgetary enforcement is suspended, companies benefiting from more freedom in decisions.

Under GO6, the company can decide to stagger the main budgetary debts for a period of up to 10 years and the restructuring plan can be adjusted at any moment during implementation.

Leave a Reply

Your email address will not be published. Required fields are marked *