Banca Naţională a României

At end-July 2004, broad money (M2) ran at ROL 525,105 billion, up 3.7 percent in nominal terms and 2.3 percent in real terms versus June. In year-on-year comparison, broad money jumped by 34.3 percent, or 19.8 percent in real terms.

Net foreign assets rose by 10.8 percent to ROL 306,650 billion in July, due to the 13 percent advance under "Convertible currencies" and the "Gold" component remaining broadly unchanged.

Net domestic assets diminished by 5 percent to ROL 218,455 billion. Domestic credit dropped by 2.7 percent to ROL 336,668 billion and the negative balance under other assets, net, widened by 1.9 percent to ROL 118,213 billion.

In July, non-government credit went up 4.5 percent, or 3.2 percent in real terms, to ROL 367,283 billion, as a result of the 1.4 percent pick-up in ROL-denominated loans and the 6.7 percent rise in foreign exchange-denominated loans (5.4 percent when expressed in EUR). In year-on-year comparison, non-government credit leapt by 59.2 percent (42 percent in real terms) on the back of the 48.7 percent jump in ROL-denominated loans (32.6 percent in real terms) and the 67.2 percent expansion in foreign exchange-denominated loans (51.3 percent when expressed in EUR).

Government credit, net, showed a negative balance of ROL 30,616 billion (compared with ROL 5,602 billion in June), due to (i) the increase in deposits with the General Account of the Treasury, (ii) the redemption of ROL-denominated government securities launched by the Ministry of Public Finance, (iii) the increase in EU financial assistance (Phare funds), and (iv) the decrease in deposits of the Ministry of Public Finance with the National Bank of Romania.

Narrow money (M1) stood 4.7 percent higher in nominal terms at ROL 131,880 billion on the back of the 6.4 percent growth in currency outside banks (to ROL 73,312 billion) and the 2.7 percent climb in demand deposits (to ROL 58,568 billion).

Quasi-money moved ahead 3.3 percent in nominal terms to reach ROL 393,225 billion. Household savings crept up 3.1 percent to ROL 119,784 billion, accounting for 22.8 percent of broad money. Household savings expanded year over year by 27.5 percent, or 13.7 percent in real terms.

Corporate deposits in ROL increased 5.6 percent in nominal terms to ROL 88,211 billion. Time deposits picked up 8.7 percent to ROL 55,622 billion, restricted deposits edged up 1.8 percent to ROL 13,096 billion and certificates of deposit inched down 0.2 percent to ROL 19,493 billion. Corporate deposits in ROL surged year on year by 74.3 percent, or 55.5 percent in real terms.

Forex deposits of residents (including households), when expressed in ROL, advanced 2.4 percent in nominal terms to ROL 185,229 billion (when expressed in EUR, forex deposits amounted to EUR 4,508 million). Household forex deposits with banks went up 2.7 percent to ROL 96,264 billion (when expressed in EUR, household deposits grew by 1.5 percent, the equivalent of EUR 2,343 million). Corporate deposits in foreign exchange rose by 2.6 percent to ROL 79,567 billion (when expressed in EUR, they stood 1.4 percent higher at EUR 1,936 million). In year-on-year comparison, when expressed in EUR, forex deposits of residents climbed by 9.8 percent, those of households by 15.5 percent, and corporate forex deposits by 5.9 percent.

At end-July 2004, non-banks held government securities worth ROL 67,426 billion (7.1 percent higher month on month), of which foreign-exchange-denominated securities to the equivalent of EUR 165 million, 5.3 percent lower from June.