The long-term sovereign credit ratings on the Republic of Romania were upgraded on Feb. 27, 2003. The rating actions reflect: Romania's continued successful stabilization of the economy, which has begun to display sturdy export and private-investment-driven growth accompanied by lasting reduction in inflation and interest rates. Strong export performance and a significant rise in workers' remittances from abroad cut the current account deficit to US$1.6 billion (3.6% of GDP) in 2002 from US$2.3 billion (5.8% of GDP) in 2001. This, combined with a sizeable reflow of capital back to Romania, has resulted in the further strengthening of its external financial position. Additional improvement in the reserve coverage of external borrowing requirements. Official exchange reserves rose to over US$6 billion in
