Friday, April 18, 2008

Romania Remittances 'to Decline'

17 April 2008
Bucharest _ Romanians working abroad are to send less money back home, an official from the country's National Bank believes.

The reason is that Romanian emigrants have moved to countries such as Spain and Italy which are being affected by the international credit crunch, according to Cristian Popa, Deputy Governor of the Romania National Bank, BNR.

He added it was unlikely Romanians working abroad will return home soon since many of them work in construction and the real estate industry is booming in these countries.

He explained these remittances do no longer influence the exchange rate but have a positive influence over the current account deficit, in the respect of balancing it, which is at a smaller level than the commercial deficit and the difference accounting for 5% of the Gross Domestic Product.

In 2007, Romanians abroad sent € 7 billion back home.

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