According to Doru Mardare, Managing Director of ITC Networks, a company specializing in developing software for the telecommunications industry, the debts of Romanian IT&C companies will increase some 10-15 percent this year.
But this varies according to company. As such, companies that sign contracts with the state are forced to pay their debts, in order to participate in future auctions. However, to survive on the market, some companies are finding that paying their suppliers is more important than paying their debts to the state, according to Eugen Schwab-Chesaru, Managing Director for Central and Eastern Europe of the Pierre Audoin Consultants (PAC) market research and strategic consulting firm.
According to a Business Standard analysis, based on information published by the Ministry of Finance, most companies reported declines in debts last year, on average of some 25 percent, as 2008 was considered by company officials as a year with significant increases in sales and liquidity. On the whole, however, the debts of the major players in the local IT&C industry fell by more than two percent last year.
Analysts say that companies do not have a strategy regarding a reduction in last year’s debts, as enterprises react depending on their immediate needs. They recommend that companies pay their debts, especially in this period, since companies are more attentive to all financial aspects since the beginning of this year, and cutting unnecessary costs and expenses by generating liquidity can help settle debts.
