Banca Naţională a României

At end-December 2004, broad money (M2) ran at ROL 645,332 billion, up 13.5 percent (12.8 percent in real terms) month on month. In year-on-year comparison, broad money jumped by 40.1 percent, or 28.1 percent in real terms.

Net foreign assets advanced by 15 percent to ROL 361,335 billion, due to the 18.6 percent rise under "Convertible currencies" and the 6.4 percent fall under "Gold". The increase under "Convertible currencies" resulted mainly from proceeds from the privatisation of SNP Petrom (EUR 611.1 million) and from purchases by the central bank off the forex market. The decrease under "Gold" was determined by the internal revaluation of the gold stock at end-2004, its price changing from ROL 437,404 per gram to ROL 409,513 per gram.

Net domestic assets grew by 11.6 percent to ROL 283,997 billion. Domestic credit picked up 2.5 percent to ROL 365,602 billion and the negative balance under other assets, net, narrowed by 20.2 percent to ROL 81,605 billion.

In December, non-government credit moved 4.8 percent ahead (4.2 percent in real terms) to ROL 418,031 billion, due to the 1.5 percent pickup in ROL-denominated loans and the 7.1 percent growth in forex-denominated loans (up 3.9 percent when expressed in EUR). In year-on-year comparison, non-government credit leapt by 38 percent (26.3 percent in real terms) on account of the 21.5 percent climb in ROL-denominated loans (11.1 percent in real terms) and the 51.3 percent expansion in foreign exchange-denominated loans when expressed in ROL (56.9 percent when expressed in EUR).

Government credit, net, posted a negative balance of ROL 52,429 billion (compared with ROL 42,022 billion in November), due to: (i) the increase in forex deposits of the Ministry of Public Finance with the National Bank of Romania (ii) the rise in EU funding (PHARE funds); (iii) the decrease in the balance of the General Account of Treasury.

Narrow money (M1) moved 9.6 percent higher to ROL 153,601 billion, on the back of the 3.1 percent advance in currency outside banks (to ROL 75,367 billion) and the 16.6 percent increase in demand deposits (to ROL 78,234 billion).

Quasi-money went up 14.7 percent to ROL 491,731 billion. Households savings added 3.6 percent to ROL 135,599 billion, accounting for 21 percent of broad money. Households savings climbed year over year by 36.2 percent, or 24.6 percent in real terms.

Corporate deposits in ROL grew by 15 percent to ROL 121,502 billion. Time deposits rose by 19.5 percent to ROL 83,872 billion, restricted deposits went up 11 percent to ROL 15,473 billion and certificates of deposit increased 3 percent to ROL 22,157 billion. Corporate deposits in ROL surged by 58.3 percent (44.9 percent in real terms) year on year.

Residents's deposits in foreign exchange (households included), when expressed in ROL, expanded by 22.2 percent in nominal terms to ROL 234,631 billion (EUR 5,916 million, when expressed in EUR). Households deposits in foreign exchange picked up 6.6 percent to ROL 98,023 billion (up 3.5 percent when expressed in EUR to EUR 2,471 million).

Corporate deposits in foreign exchange jumped by 44.1 percent to ROL 127,665 billion (up 39.9 percent when expressed in EUR to EUR 3,219 million). The increase was owed to the proceeds from the privatisation of SNP Petrom worth EUR 830.6 million, representing the value of newly subscribed shares with a view to increasing share capital. When expressed in EUR, year over year, residents' forex deposits rose by 42.1 percent, household deposits in foreign exchange grew by 17.8 percent and corporate deposits soared by 77.5 percent.

At end-December 2004, non-banks held government securities in total amount of ROL 66,932 billion (down 3.8 percent month on month), of which foreign exchange-denominated securities amounted to EUR 114 million, down 2.2 percent from November.