AOAR unhappy with arrears containment

The increasing share of arrears in GDP from 35.76% in 2001 to 37% in 2002 proves the ineffectiveness of the steps the Government has taken in this regard, the Romanian Business People Association (AOAR) believes. “AOAR feels the arrearage registered by the 74 companies monitored by the Finance Ministry on June 30, accounting for about 7.7% of GDP confirms that new intervention and regulation mechanisms need to be turned into effect and allow for unclogged cash flows,” the association says. AOAR estimates that if NBR keeps intervening repeatedly and has interests go up fast, companies that took out loans for funding production and investments may suffer as a result. Such decisions may be “just another cause to lead to unrepaid credits and to a more serious arrearage soon” by increasing the volumes of unpaid bills issued as part of corporate relations. ZF