BR Exclusive: Retail companies, hotels and restaurants requested most of the Emergency Situation Certificates UPDATE: April situation

Aurel Constantin 05/05/2020 | 18:34

UPDATE: Between 5 April – 2 May the number of emergency certificates doubled to a total of 32,167, of which 2 third are Type 1 and one third is type blue. At national level, in April, over 30,000 companies stopped or reduced activity. The total revenue of the companies is EUR 30 billion and the number of employees they have is 485,000. 

The companies from Wholesale sand Retail Trade are in a bigger number than those from Hotels and Restaurants. These two industries and Manufacturing account for 52 percent of all certificates requested. 

By region, most certificates were requested in the Bucharest-Ilfov area, the rest of the geographical areas being represented approximately similar to the national distribution. The fewest certificates were requested in the South-West area. Among the companies that received emergency certificates about 21 percent had already registered a negative EBIT or negative Net Result in December 2018.

Main story from April 15, 2020:

The Emergency State made many companies to stop their activity and send over a million employees into technical unemployment. According to Virgil Popescu, the minister of Economy, about 15,000 Emergency certificate were requested by companies so far. Business Review received an exclusive study by ICAP Romania that shows what industries are most hit by the pandemic-caused situation.

Companies that have been affected by the COVID-19 pandemic and the emergency situation restrictions imposed by the Military Ordinances can get financial aid from the Government. They need an Emergency Situation Certificate to prove the need for help, a certificate that is available for the entire period of Emergency.

There are 2 types of certificates. The Blue one (Type 1) is for the companies that had their activity totally or partially interrupted as a result of the decisions taken by the authorities during the state of emergency. The Yellow one (Type 2) is for the companies recorded at least a 25 percent decrease in revenue in March 2020 compared to January-February 2020.

According to ICAP Romania, in the April 5-12 week, 11,747 emergency certificates were issued, an average of 2,270 per day. From the total, 68 percent or 7,934 certificates were Blue and 32 percent or 3,813 were Yellow.

Most of them were from companies in wholesale and retail trade industry (2,596 certificates) and hotels and restaurants (HORECA) (2,594). Together with the processing industry (1,158 certificates), these 3 industries add up to 54 percent of the number of certificates requested.

The most Type 1 certificates were requested by companies in HORECA (2,464 certificates), while for the Type 2 certificates the highest number was from wholesale and retail trade (1,084).

About a third of all certificates issued (33 percent) are for companies from the Capital City area, while the rest of the geographic regions in the country are represented uniformly. The fewest certificates were requested in the South – West area (6 percent).

Bucharest area alone stands for 28 percent of the certificates issued, followed by Cluj (6 percent), Constanta (5 percent), Ilfov (5 percent), Iasi (5 percent), Brasov (4 percent), Timis (4 percent) and Prahova (4 percent).

Micro companies were the most numerous among those that requested a certificate. By the form of organization, under 1 percent of requests were made by companies that have another legal form than SA or SRL.

About a quarter (25%) of the companies that received emergency certificate had already registered a negative EBIT (operational income) or a negative net result as of December 2018. This means that for the other 75 percent, the request of forced by the current economic situation.

ICAP Group is one of the most successful Business Information Groups in Southeastern Europe with a strong presence in Romania, Greece, Bulgaria, Serbia, Cyprus and Turkey. With over 45 years of experience in assessing the credit risk involved in transactions, ICAP Group is recognized as Credit Rating Agency by ESMA (European Securities and Markets Authority).

ICAP Romania is specialized in providing Credit Risk services helping companies and banking-financial institutions to identify and better manage the risk involved in commercial transactions.

In May 2012 ICAP Group has entered into an exceptionally significant strategic agreement with Dun & Bradstreet (D&B), the worldwide leader in the provision of Credit Risk Services and Business Information, supplying information on companies from 220 countries.

The automatic Credit Ranking methodology used in this study represents an estimated credit quality of companies and is developed in Greece by our specialists team based on business information, transactional and financial data.

The Scoring, used in credit reports is obtained by manual adjustments of Scoring by ICAP Romania financial analysts based on their experience and using updated data in real time. Scoring and Scoring may be different.

BR Magazine | Latest Issue

Download PDF or read online: December 2022 Issue | Business Review Magazine

The December 2022 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “Xclusiverse: Going Beyond the Traditional Ways of Doing Business.”
Aurel Constantin | 19/12/2022 | 18:45

    You will receive a download link for the latest issue of Business Review Magazine in PDF format, based on the completion of the form below.

    I agree with the Privacy policy of
    I agree with the storage and handling of my data by
    Advertisement Advertisement
    Close ×

    We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

    Accept & continue