The Mechanisms of Arrears in Romania

The phenomenon of arrears is difficult to capture due to its complexity. In this context, the paper aims at providing a unified perspective on the phenomenon by building a picture of the network of arrears in Romania which reflects the relations between the main economic actors involved. The relevance of the study stems from the analysis of the mechanism of arrears that made them a persistent phenomenon even after more than 20 years since the transition from the centrally-planned economy to the market economy, and from the analysis of the impact of financial crisis which reduced the accessibility of the Romanian agents to bank credit and, consequently, generated an increase in arrears.