BNR’s Georgescu: EUR 11 bln needed for recapitalization of Romanian companies

Newsroom 23/09/2016 | 20:56

The recapitalization needs of Romanian companies stand at EUR 11 billion, First Deputy Governor of the National Bank of Romania (BNR) Florin Georgescu says.

Out of the total EUR 11 billion, EUR 6 billion would be be needed to recapitalize private companies with foreign capital, EUR 4.5 billion to recapitalize private companies with Romanian capital and 0.5 billion would be necessary for the recapitalization of state companies, Georgescu stated during a conference on Friday.

During the conference, the BNR official presented the 2015 financial results of Romanian companies. Accordingly, out of 700,000 companies, only 608,000 (85 percent) submitted their balance sheet. Out of them, 84,000 (14 percent) were at a break-even point. Out of the 524,000 companies that reported either profit or losses, the majority posted profit, namely 306,000 companies (58 percent). They posted a total of EUR 17 billion in profit. Out of them, the state owns only 720 companies with a total profit of EUR 2 billion.

The BNR official showed his concern for the financial situation of companies that report financial losses for several years in a row.Beyond the block they cause in the economy, chronic de-capitalization is decreasing the GDP, because the loss cancels a share of the gross added value created by the company every year,” Georgescu explained.

In his opinion, the fact that 219,000 companies (42 percent) recorded EUR 8.5 million losses, is a reason for concern. Out of the total number, 390 state-owned companies recorded losses of EUR 0.9 billion and 2018,610 are private companies that reported a total loss of EUR 7.6 billion.

Georgeta Gheorghe

BR Magazine | Latest Issue

Download PDF: Business Review Magazine November 2023 Issue

The November 2023 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “Mastercard On a Mission to Build an Inclusive Digital Economy”. To
Newsroom | 27/11/2023 | 17:41
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