BNR: EUR 11 bln needed for recapitalization of Romanian companies

The recapitalization needs of Romanian companies stand atEUR 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 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 held in Bucharest, according to Business-Review.eu.

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 the 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.

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