Romanian insolvencies in 2024 reach pre-pandemic Levels

CITR, the leader in the insolvency and restructuring market in Romania, announces that the number of companies that resorted to insolvency procedures in 2024 increased by over 9% compared to the previous year and reached the threshold of 7,274. Of these, 141 are companies with assets of over EUR 1 million, compared to 90 in the previous year. Regarding the number of applications for restructuring through the preventive composition procedure, they had a significant increase in 2024, by 118%, reaching 197.

“Although still below the levels of the 2008 global financial crisis, insolvencies in many countries, including the UK, France and Germany, have already exceeded pre-pandemic thresholds, reflecting increased economic pressures and the transition to new business models. This trend is felt in most regions and economic sectors, including Romania, also driven by the “elimination of infusions” offered to companies during the pandemic and the energy crisis. Insolvencies and requests for preventive concordat in 2024 in Romania show us that the business environment is also undergoing a transformation. The current outlook indicates an imminent wave of insolvencies, because many companies have been artificially kept alive through various support measures. These companies resort to recovery solutions when it is too late, which significantly reduces the chances of success. We recommend that companies turn to specialized solutions before the difficulties become insurmountable. Adaptability and strategic planning will make the difference in the coming period,” stated Paul-Dieter Cîrlănaru, CEO of CITR.

The most affected sectors in 2024 were wholesale and retail trade, leading in 2024, with 1,902 insolvencies, up 6.79% compared to 2023, the construction sector, with 1,499 insolvencies, up 13.39% and the manufacturing industry, with 852 insolvencies, up 7.17% compared to the previous year.