About 20,000 companies in Romania suspended their operations in the first quarter of this year, almost four times more than in the same period in 2009, according to data published on Wednesday by the National Companies Registry Office, ONRC.
The companies' decisions to put an end to their activities follows a move by the centre-right government to introduce a corporate lump sum tax. The government introduced the tax last May in a bid to tackle the grey
Furthermore, another 6,250 companies started insolvency proceedings in Q1 2010, up 27 per cent on the same interval a year earlier, ONRC added.
Romania entered into recession last year as the world economic crisis affected consumption and demand for Romanian goods abroad. Lending decreased significantly and forced the Balkan country to secure a €20 billion IMF-led loan in March.