Companies to suspend recently increases over 20 per cent in Moldova

Chisinau, 22 September /MOLDPRES/ – The number of companies which suspended operations or were reorganized within eight months of 2016 has increased by over 20 per cent compared similar period of 2015, according to data of the State Registration Chamber (CIS).

The official statistics indicates that the number of businesses that were removed from the State Register in regions facing more problems and dropped more pronounced than in Chisinau. Regions is in first place with the most suspensions of activity, namely in 2436, up to 27 per cent. In Chisinau number of companies dissolved went up slightly, but followed the same upward trend.

More and more companies cease their activities due to the precarious financial situation or that are declared bankrupt by the court. The statistical data of the State Tax Service confirms this trend in the first six months of 2016, the number of businesses that went into insolvency increased three times.

The Governor of the National Bank of Moldova (BNM) Sergiu Cioclea said on 21 September at the meeting of the Parliamentary Committee on Economy, Budget and Finance that the share of bad loans in total loans rose from 8.9 per cent in 2014 to over 16 per cent in 2016, including due to the fact that large companies are on the brink of bankruptcy, and others because of the financial situation are late with payment rates.

On the other hand, the State Registration Chamber data shows that the number of newly registered firms was reduced. In January-August 2016, there were taken out 3787 in the State Register of companies, nearly 90 fewer than in the same period in 2015.

(Reporter V. Bercu, editor L. Alcaza)