ROMANIA| Capital: | Bucharest |
| Population: | 22,334,312 |
| Government type: | Republic |
| Location: | Southeastern Europe, bordering the Black Sea, between Bulgaria and Ukraine |
| Area: | 237,500 kmē |
| Land boundaries: | Total 2,508 km; Bulgaria 608 km, Hungary 443 km, Moldova 450 km, Serbia and Montenegro 476 km (all with Serbia), Ukraine (north) 362 km, Ukraine (east) 169km |
| Ethnic groups: | Romanian (89.1%), Hungarian (8.9%), German (0.4%), Ukrainian, Seb, Croat, Russian, Turk, and Gypsy (1.6%) |
| Religions: | Romanian Orthodox (70%), Roman Catholic (6%, of which 3% are Uniate), Protestant (6%), unaffiliated (18%) |
| Languages: | Romanian, Hungarian, German |
General
After the collapse of the Soviet Bloc between 1989 - 1991, Romania was left with an obsolete industrial base and a pattern of industrial capacity wholly unsuited to its needs. In February 1997, Romania embarked on a comprehensive macroeconomic stabilisation and structural reform programme, but reform subsequently has been a stop-and-go process. Restructuring programmes include liquidating large energy-intensive industries and major agricultural and financial sector reforms. Today, Romania is continuing its difficult transition to a market-based economy. GDP contracted by an estimated 7.3% in 1998 after a 6.6% decline in 1997. Tight monetary policy and slower exchange rate depreciation earlier in 1998 helped lower inflation to an estimated 41% from 152% in 1997. The large current account deficit and concerns about meeting debt payments in 1999 contributed to increased pressure on the exchange rate towards the end of 1998. Replacing the IMF standby agreement (suspended because of lack of progress on structural reforms), servicing large debt payments, and bringing the budget under control were key priorities for 1999.
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