Fear of insolvency leads to over 20,000 Romanian bankrupt companies in 2007

There were 10,547 bankrupt companies throughout the country in the first eight months of 2007, up 26 percent year-on-year, from 7,791. Bucharest ranks first, with 1,744 files, followed by Bistrita Nasaud (1,186), Brasov (598), and Constanta (469), according to data supplied by the Chamber of Commerce and Industry of Romania.

"Insolvency is not yet perceived by managers as a way of strengthening the company; this is the result of the lack of an insolvency culture, which managers in other European countries acquired long ago. This is why, postponing declaring the insolvency state of the company becomes most of the times the bankruptcy state," Stanescu told Business Standard.