Banca Naţională a României

At end-December 2003, broad money (M2) came in at ROL 460,751 billion, up 8.2 percent in nominal terms (7 percent in real terms) month on month. January through December 2003, broad money expanded by 23.3 percent, or 8.1 percent in real terms.

Net foreign assets stepped down 1.4 percent month on month to ROL 252,083 billion on the back of the 4.7 percent fall under "Convertible currencies" and the 16.3 percent rise under "Gold" component. The drop under "Convertible currencies" stemmed mainly from principal repayments and payment of interest on external public debt, direct and bearing the guarantee of the Ministry of Public Finance, while the significant increase under "Gold" component was the result of revaluation year-end through the change in price from ROL 375,351 per gram to ROL 437,404 per gram.

Net domestic assets moved 22.8 percent ahead to ROL 208,669 billion. Domestic credit advanced 12.1 percent to ROL 301,060 billion and the negative balance under other assets, net, narrowed by 6.4 percent to ROL 92,391 billion.

Non-government credit, climbed by 5.7 percent in December (a 4.4 percent growth in real terms) to ROL 305,482 billion, following the 5.7 percent increase in loans in ROL and the 5.7 percent growth in loans in foreign exchange (up 3.4 percent when expressed in EUR). January through December 2003, non-government credit jumped by 70.1 percent (up 49 percent in real terms) on account of the 102.7 percent surge in loans in ROL (up 77.7 percent in real terms) and the 50.7 percent rise in loans in foreign exchange (28 percent when expressed in EUR).

The deficit under government credit, net, narrowed by 78.3 percent (to ROL 4,422 billion) due to: (i) contraction in deposits in foreign exchange of the Ministry of Public Finance with the National Bank of Romania and (ii) issue of government securities in ROL.

*the ratio shows the narrowing from ROL 20,368 billion to ROL 4,422 billion of the deficit under government credit, net.

Narrow money (M1) moved up 13.9 percent in nominal terms to ROL 113,260 billion on account of the 1.3 percent increase in currency outside banks (to ROL 57,978 billion) and the 31.2 percent growth in demand deposits (to ROL 55,281 billion).

Quasi-money picked up 6.5 percent in nominal terms to ROL 347,492 billion. Household savings edged up 2.5 percent to ROL 99,585 billion, accounting for 21.6 percent of broad money versus 22.8 percent at end-November. During 2003, household savings climbed by 12 percent (down 1.8 percent in real terms).

Corporate deposits in ROL leapt by 26 percent in nominal terms, reaching ROL 76,738 billion. Time deposits rose by 40.5 percent to ROL 50,087 billion, restricted deposits crept up 7.3 percent to ROL 11,750 billion, and certificates of deposit went up 4.1 percent to ROL 14,901 billion. In 2003, corporate deposits in ROL expanded by 54.4 percent, or 35.3 percent in real terms.

Forex deposits of residents (including households), when expressed in ROL, enhanced by 1.8 percent in nominal terms to ROL 171,169 billion (when expressed in EUR, forex deposits amounted to EUR 4,163 million). Forex deposits of households with banks stepped up 2.8 percent to ROL 86,264 billion (when expressed in EUR, household deposits inched up 0.5 percent to EUR 2,098 million). Corporate deposits in foreign exchange moved 0.03 percent higher to ROL 74,586 billion (when expressed in EUR, they shrank by 2.2 percent to EUR 1,814 million). Throughout 2003, forex deposits of residents, when expressed in EUR, slid by one percent, those of households grew by 11.5 percent, and corporate forex deposits fell by 13 percent.

At end-December 2003, non-banks held government securities tantamount to ROL 46,481 billion (up 1.6 percent month on month), of which foreign-exchange-denominated securities amounted to EUR 145 million, 10.4 percent higher from November.