Approximately 70% of the total amounts sent home by the Romanians working abroad are used for the day-to-day expenses by the recipients, according to Gabriel Sorbo, Regional Manager for Romania, Italy, Greece, Bulgaria, Malta and Cyprus, at "Western Union". The transfers to Romania have dropped continuously over the last three years, and this is expected to happen this year as well, amid the difficult situation in Europe and in the United States, he said.
Transfers have fared better to the financial crisis than direct foreign investments in Romania, but the gap between the two will continue to drop, said Gabriel Sorbo.
* Interview with Gabriel Sorbo, regional manager at "Western Union" - for Italy, Romania, Greece, Bulgaria, Malta and Cyprus
Reporter: How did the money transfers to Romania evolve in the last few years?
Gabriel Sorbo: According to data published by the World Bank, in 2009, 2010 and 2011, money transfers to Romania decreased 47%, 20%, and 5% respectively, to 3.75 billion dollars in 2011. The current estimates of the World Bank (based on the data available on the evolution of the transfers for the current year) show that the market will continue to drop in 2012 as well, by about 6%.
The difference between the amount of the transfers and that of direct foreign investments has continued to grow over the last two years. But, considering that the market for transfers continues to decline, and direct foreign investments to Romania are estimated to increase 25% in 2012, according to Global Insight, this difference will no longer increase, quite the contrary, it will shrink in 2012.
Reporter: What are the causes behind this evolution?
Gabriel Sorbo: The economic crisis had an impact on the population all over the world, including Romanian migrants. Approximately 89% of those who use Western Union are migrants w
