The exports were one of the primary factors that sustained the recent economic growth, according to Coface officials.
'The revival in exports is specific to the developing countries in a post-crisis period, when the demand of the developed countries is subject to a change of structure. To be more precise, in a period of crisis, consumers generally tend to replace the superior goods or luxury goods with inferior, cheaper products, or with a lower value added. This peculiarity has marked the evolution of the Romanian exports throughout 2013, as they were heavily dependent on the automotive industry, and the destinations were mainly the developed countries. Thus, after a relative stagnation in 2012, the exports saw an annual advance of 12 percent (real increase, gross series) in 2013, surpassing the imports that rose by only 2 percent,' the release reads.
Coface selected a sample of 400 companies, the most important local exporters (depending on the total turnover recorded in 2012).
Out of the 400 above-mentioned companies, 20 have already suspended their activity in 2013.
At the request of its business partners, Coface has conducted an analysis on 350 companies out of the 400 in 2013.
The findings showed that 40 percent of the examined companies run a high or over the average insolvency risk, while 30 percent of them fail to make payments according to the contractual requirements.
For 30 percent of these firms, Coface does not recommend the commercial credit exposure (paying by the due date).
'The exports' contribution to the Romanian economy in 2013 was utterly important and will play a significant role in 2014, but an increase in the volume of exports by 12 percent is not enough, because there is a higher tendency to later cash invoices from foreign partners, this entailing a bigger funding effort from the suppliers. In any business, not just the turnover's increase is important, but also cashing invoices and paying suppliers in time; in this respect, the need to inform the foreign partners plays a vital role in the success of Romanian exports,' said Coface Romania Country Manager Constantin Coman. (source: actmedia.eu)
