Freezing projects abroad lowered IMSAT’s business by 30%

“Suspending the projects abroad led to a decline in the €110 million turnover budgeted in October, to some €85 million in March. Fortunately, projects in Romania did not stop, so I hope we will maintain the 30 percent drop throughout the year,” Varfalvi said.

The company official added that one of the company’s major problems is the recovery of receivables from suppliers, worth a total €10 million, most of which comes from construction work for the state. IMSAT has ongoing contracts worth a total €150-160 million.

The volume of construction work fell 6.4 percent in January 2009 compared to December 2008, according to the National Institute of Statistics (INS). On the other hand, construction of residential buildings soared 28.1 percent, while non-residential construction increased 8.2 percent compared to January 2008.