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| The Week in Review |
| (2011-11-05) |
| Last updated: 2011-11-07 14:14 EET |
Romania wraps up the census of population and homes
Romania ran its first census of people and homes after its European accession, and the third after the regime change in 1989. It has now been officially declared finished. According to the National Statistics Institute, in the 11 days of the census, 8.3 million homes and almost 20 million people were registered. This number does not necessarily represent the stable population of Romania, because it does not include the people who self-registered, or were registered through the Ministries of Defense, Foreign Affairs and the Interior. After processing the data, the National Statistics Institute will publish an estimate report on the stable population at the end of January next year, and a preliminary report in April or May. The final figures will be published in 2014. According to the previous census conducted in 2002, Romania had 21.5 million inhabitants. Romanians form a 90% majority, and 87% of them are Christian Orthodox. Of ethnic minorities, Hungarians are the most numerous, 6.6%, followed by the Rroma, with 2.4%, and by smaller percentages of Ukrainians, Germans, Russians, Turks, Tartars, Slovakians, Bulgarians, Croats, Greeks, Czechs, Poles, Italians and Jews.
A joint mission of foreign lenders visits Bucharest
Romania’s economic situation is slightly better than two years ago, and this makes Bucharest a bit better prepared for a possible new economic crisis. This is the opinion provided by the head of the IMF mission to Romania, Jeffrey Franks. He said that Bucharest has managed to make important steps towards structural reform. The uncertainties in the Eurozone, however, warrant prudence. The authorities in Bucharest assured everyone that the draft budget for 2012 would be what they called a “bad weather” bill, considering what is going on in Europe. This will be built on a 1.9% deficit, because estimates for next year expect a GDP increase of between 1.7% and 2.7%.
The National Bank of Romania has brought down the reference interest rate and introduced new lending rules.
This week, the Romanian central bank brought down by 0.25% the reference interest rate, to 6% a year. This measure is considered a sign that lending is making a recovery, especially in the private sector, with prospects of the economy growing sustainably. At the same time, for individual borrowers, according to new National Bank regulations, the minimum down payment for mortgage loans is 25% for loans in Euro and 15% for loans in lei. The maximum level of debt cannot exceed 35% of eligible income for loans in lei, and 10% for loans in hard currency. Consumer loans and personal loans now cannot be taken for more than five years. Limiting hard currency borrowing is necessary to avoid risks to macroeconomic and financial stability.
Bucharest still hopes to join the Eurozone in 2015 in spite of doubts.
Bucharest insists on adopting the European single currency in 2015, said Prime Minister Emil Boc. He claimed that Romania has the correct public deficit, public debt and inflation parameters to be well on its way towards joining the Eurozone in four years time. The prime minister also claimed that Romania’s public debt, 31% of the GDP, is lower than that of many Eurozone countries, and much lower that the 60% threshold set by the Maastrict Treaty, while inflation falls every month.
President Traian Basescu visits Serbia.
President Train Basescu went on a two-day visit to Serbia, where he assured his counterpart, Boris Tadici, that Romania supports Serbia’s European bid without reservations. He also reiterated that Bucharest does not recognize Kosovo’s independence, and that a negotiated solution in this matter is needed to settle the situation between Belgrade and Prishtina. President Basescu also met representatives of the ethnic Romanian community in Timoc Valley, as well as representatives of the Romanian Parish in the region. He urged Romanians there to stay united in order to better defend their rights, and told them that Romania will act only diplomatically in this respect, not getting directly involved in the internal affairs of Serbia.
14 Romanians die in an accident in Hungary.
In Hungary, an investigation is underway to make sense of the terrible accident that occurred early this week, when a Romanian trailer truck went on the wrong lane on a motorway and slammed into a minibus registered in Spain, which was bringing Romanians back home. 14 passengers lost their lives. Romanian Foreign Minister Teodor Baconschi said that the Romanian authorities would support the families of the deceased in repatriating their remains.
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