Banca Naţională a României

At end-December 2002, broad money (M2) stood at ROL 373,711 billion, up 11.7 percent in nominal terms (10 percent in real terms) month on month.

Net foreign assets stepped up 7.6 percent to ROL 236,923 billion, due to the rise under "Convertible currencies" and the "Gold" components by 3.6 percent and 33.1 percent respectively. "Convertible currencies" grew mainly on the back of the increase in foreign exchange purchases by the National Bank of Romania. The surge under "Gold" was due to the domestic revaluation of the gold stock at year-end, through the change in price from ROL 282,004/gram to ROL 375,351/gram.

Net domestic assets added 19.7 percent to ROL 136,788 billion. Domestic credit moved up 10.6 percent to ROL 200,358 billion, while the negative balance under other assets, net narrowed by 4.8 percent.

In December, non-government credit moved ahead 4.7 percent to ROL 179,626 billion, as a result of the one percent rise in ROL loans and the 7.1 percent uplift in foreign-exchange loans (7.3 percent growth when expressed in USD).

Government credit, net rocketed by 116 percent to ROL 20,732 billion due chiefly to: (i) the contraction in the ROL and foreign exchange holdings of the Ministry of Public Finance with the National Bank of Romania, and (ii) the issue of government securities.

Narrow money (M1) moved ahead 21.3 percent to ROL 88,304 billion, on account of the 9.3 percent climb in currency outside banks to ROL 45,577 billion, and the 37.2 percent jump in demand deposits to ROL 42,726 billion. The expansion in both currency outside banks and demand deposits traced to seasonal factors (end-of-year bonuses especially in the non-budgetary sector, sales occasioned by Christmas shopping spree), and to occasional factors (indexation of pensions and other social security benefits).

Quasi-money went up 9 percent to ROL 285,408 billion. Household savings put on 6 percent to ROL 88,894 billion, accounting for 23.8 percent of broad money against 25.1 percent at end-November. This development was due to a great extent to interest paid by the Savings Bank (CEC) for the entire year 2002.

Corporate deposits in ROL rose by 16.3 percent to ROL 49,702 billion. Time deposits moved up 23 percent to ROL 29,370 billion, restricted deposits 11.2 percent to ROL 9,062 billion and certificates of deposits 5.1 percent to ROL 11,270 billion.

Forex deposits of residents (including households), when expressed in ROL, stepped up 8.6 percent to ROL 146,812 billion (when expressed in USD, forex deposits augmented by 8.8 percent to USD 4,382 million). Forex deposits of households edged up 2.8 percent (tantamount to USD 1,962 million).

At end-December, non-banks held government securities totalling ROL 41,273 billion (down 3.3 percent month on month), of which those in foreign-exchange amounted to USD 135 million, 13 percent lower versus November.

January through December 2002, broad money recorded a nominal 38.1 percent uplift, exceeding the 17.8 percent inflation rate recorded in the period under consideration. The increase was 17.2 percent in real terms. Net foreign assets soared by 40.6 percent (32.6 percent when expressed in USD), against the backdrop of the expansion by 42.2 percent (34.1 when expressed in USD) under "Convertible currencies" and the 33.3 percent rise under "Gold". When expressed in USD, the gold stock grew by 25.7 percent. In the period under review, net domestic assets advanced 34.1 percent (13.8 percent in real terms).

In 2002, non-government credit swelled 51.9 percent (28.9 percent in real terms), mirroring the growth of ROL and foreign exchange loans by 40.4 percent (19.2 percent in real terms) and by 59.6 percent (50.6 when expressed in USD) respectively. Government credit, net declined by 17 percent (29.6 percent in real terms), due chiefly to redemption of medium- and long-term government securities destined to the restructuring of the banking sector.

During 2002, narrow money (M1) augmented by 37.3 percent (16.6 percent in real terms), against the background of the upsurge in demand deposits and in currency outside banks by 49 percent (26.5 percent in real terms) and 27.9 percent (8.6 percent in real terms) respectively. Quasi-money stepped up 38.4 percent (17.5 percent in real terms) due to the expansion in household savings, ROL deposits and foreign exchange deposits of residents by 39.5 percent (18.4 percent in real terms), 86.1 percent (57.9 percent in real terms) and 26.8 percent (19.6 percent when expressed in USD) respectively.

In 2002, the stock of government securities outstanding with non-banks stepped up 30.2 percent (10.6 percent in real terms), government securities in ROL growing by 39 percent (18 percent in real terms), and those in foreign exchange declining by 18.7 percent (when expressed in USD).