EFFICIENCY-BASED RESTRUCTURING APPROACH OF ROMANIAN ECONOMY

Large-scale corporate restructuring made necessary by a financial crisis is one of the most daunting challenges faced by economic policymakers. The financial crisis at the end of 2008 has brought back , in the Romanian economy too, the problem of the negative economic growth, of the massive interenterprise arrears and the huge losses of the business operators (this time,privately owned) as well as the need for restructuring not only of the residual state portfolio or government entities, but also for the private sector through the means of market economy. A comprehensive strategy and methodology for restructuring, encompassing both the corporate and financial sectors, is put in place once the economic crisis in Romania is judged to be systemic in scope. The extent of the restructuring, the required resources and timing became the critical issues. These issues are and were compounded by contention for scarce resources, lack of legal framework, lack of expertise within the Romanian enterprises and inefficiencies resulting from the activity being carried out across the economy by various entities. The actions that will be taken have to be justified on a cost-benefit basis and measured to ensure that the desired results are achieved within a certain timeframe setting-up the concept of “Efficiency-Based Restructuring”. This concept was tested and proved to be competitive, during the large scale restructuring process of the mid nineties in Romania.