The advance of the coronavirus epidemic has already created significant problems in the Romanian economy, from transport, to the event industry, tourism and HORECA, and if no effective measures for business reorganization will be taken, many of the Romanian companies are likely to face major financial problems that can lead to insolvency and bankruptcy, reveals an analysis by Sierra Quadrant.

“The Romanian economy is more fragile than ever before the effects of coronavirus. Since over 90% of companies are in the area of SMEs and do not have medium and long term financial resources, the restrictive measures imposed by the authorities to combat the epidemic are likely to create significant difficulties, especially in ensuring the cash flow needed to run the business. From the transport companies, to the companies that organize events and hotels, tens of thousands of companies risk, in the next period, to become financially blocked,” stress the analysts of Sierra Quadrant, one of the most important players in the business management services market in Romania.

According to the quoted source, the interruption of freight corridors and persons in relation with Italy and Spain generates significant financial losses, which most companies have not taken into account. As well – the event industry and in the area of travel agencies, whose cash flow is strongly affected by restrictions, according to Agerpres.

“These businesses, and not only them, must urgently take reorganization measures to avoid the bottleneck, given that the interdependence on the commercial chains is extremely high in Romania. If a company goes into insolvency, it will affect many partners also,” analysts say.