Green Genius, renewable energy developer and independent power producer owned by Modus Group, which also has projects in Romania, announces that it will receive a capital investment of up to EUR 100 million from the European Bank for Reconstruction and Development.

This investment will fund Green Genius’ expansion plans until 2029 in various European countries. Upon completion of the transaction, the EBRD will become a minority shareholder of Green Genius. The EBRD’s EUR 100 million investment will support Green Genius’ European growth strategy, which includes developing over 2 gigawatts of renewable energy, accelerating Europe’s clean energy transition and strengthening the region’s energy independence and security.

This investment marks the EBRD’s largest capital commitment for a single company of its kind in the Baltic States. The funds will be directed to the development and acquisition of renewable energy projects in the Baltic countries, Poland, Romania and other European markets.

The Academy of Economic Studies in Bucharest is expanding its campus in Piața Romană, after inaugurating a new building consisting of a new building and a modernized one.

The building has a built-up area of 650 sqm, a developed area of 6503.50 sqm. The height regime of the new building is 3 Basement+Ground+7 Floors, and the area of the old building is Basement+Ground+3 Floors.

The new building houses the headquarters of the Council for University Doctoral Studies, the premises of the Doctoral Schools, conference rooms, research laboratories, deans’ offices and faculty secretariats, spaces for scientific activities and academic communication.

The value of the executed and received works is RON 53.77 million including VAT.

CITR announces that the number of impact companies in imminent insolvency increases by 18%, from 6,949 to 8,190, and the one of impact companies in difficulty reaches the highest level since 2013. The study was carried out based on the most updated official financial data, related to the financial situation of the companies at the beginning of 2024.

“The analyzed figures represent a relevant x-ray aimed at understanding the business environment in Romania. We are not talking about a crisis or an external factor that disrupted the activity of companies in 2023, we are talking about an acute, multi-annual and statistically relevant lack of performance, materialized in poor results and sub-optimal indicators. The bottom line is that we are at a critical point where all these companies must adopt measures to adapt and consolidate in order to continue on the long term and have the ability to respond to new challenges,” said Paul-Dieter Cîrlănaru, CEO, CITR.

Of the impact companies, approximately 17% are newly entered into this category and include both newly established companies and companies that, in the previous year, did not reach the threshold of assets greater than EUR 1 million. 7,161 new companies entered the impact category, and 26% of them are already in an imminent insolvency situation. The companies newly entered in imminent insolvency, by migrating from one category to another, or newly entered among impact companies, are active in five industries: Construction (25%), Agriculture, forestry and fishing (14% ), Real estate transactions (13%), Wholesale and retail trade (12%), Real estate transactions (13%). Thus, in 2023, the ranking of the industries with the most affected companies remains unchanged.

Moreover, 47% of the impact companies in difficulty, according to the statistics, postpone for three years the access to a restructuring measure.
The debt of impact companies increased by 8%, from EUR 211 billion, to EUR 228 billion.

The total turnover of distressed companies at the beginning of 2024 was Eur 140 billion, equivalent to 33% of the total turnover of impact companies.

The number of impact companies has steadily grown over the last 10 years, reaching a total of 43,241 at the beginning of 2024. Out of these, 24,748 are considered “financeable” companies, able to manage their debts and access new sources of financing. On the other hand, 8,190 companies are in a situation of imminent insolvency.

“Despite a 4% increase in turnover, the companies’ net result fell by 8%, suggesting a significant pressure on operating costs and a difficulty in effectively managing financial resources. Also, the total assets of these companies increased by 6% – a situation in which difficulties are observed in the recovery of receivables – and the debts increased by 8%, thus underlining the trend of increased indebtedness. All of these aspects reveal increased fragility and a build-up of debt that can have a knock-on effect in certain industries or along supply chains,” concludes Paul-Dieter Cîrlănaru, CEO, CITR.

The Romanian impact companies have generated 83% of Romania’s turnover, at national level.

Currently, 43% of all impact companies, the equivalent of 18,493 companies, are restructurable or in imminent insolvency.

The economic situation worsened during the analyzed period for most companies, only 16% of them managing to improve their financial position, migrating from the difficulty area to the financeable area.

Most of the impact companies in difficulty activate in industries like:

• Companies in the construction industry represent 21% of the total number of companies in difficulty;
• Companies in trade and commerce represent 21% of the total number of companies in difficulty;
• 11% of the total number of companies in difficulty is represented by companies in the real estate industry;
• 10% of the total number of companies in difficulty is represented by companies in the manufacturing industry;
• 10% of the total number of companies in difficulty is represented by agricultural companies.