Iovu (CEC Bank): One in three SMEs in Romania is unprofitable, 45 pct of these companies have negative own capitals

One in three SMEs in Romania is unprofitable, taking into account that out of the 700,000 companies registered in the Trade Registry, 99.82 percent are SMEs, says Mirela Iovu, vice-president of CEC Bank.

“Also, 45 percent of these companies have negative own capitals and 82 percent have a maximum debt level. All these represent structural issues that not only the banking system has to be solved, but it’s necessary a co-working at national level. Out of the 700,000 companies registered at the Trade Registry, 99.82 percent are SMEs,” says Iovu.

According to her, more than half of the companies are not bankable.

“The banking system has enough liquidity that should be used. SMEs confront with guarantee issues. At CEC Bank we believe will come good times. If out of the unprofitable ones we succeed to get one out of the non-profitability, I think that we reach our objective,” said Iovu.