UNPIR: We are anticipating a rise in bankruptcy among SMEs

“This rise is natural and expected, if we consider the fact that we anticipated a national rise in filings for bankruptcy and insolvency among SMEs. This increase comes from the number of filings and less from the value of recovered debts, as there continue to be numerous such filings from which we are unable to recover much, as there is nowhere to recover anything from,” according to a statement for Business Standard by Arin Stanescu, President of the National Union of Insolvency Specialists (UNPIR).

According to estimates by specialists, the total value of debts recovered on behalf of the state budget and private lenders amounted last year to $616 million (€390 mln), up 15 percent year-on-year ($537 mln, or €339 mln). This value represents 65-70 percent of total debts due to be recovered.

Furthermore, the representatives of Valor Bucuresti, one of the most important debt recovery companies, believe that this increase is insufficient to cover total existing debts. They added that the fact that companies file for insolvency or bankruptcy, as the case may be, does not guarantee lenders, be they private or state, that they will recover debts, with the only solution guaranteed loans, which also have priority.