Banca Naţională a României

At end-October 2005, broad money (M2) ran at RON 81,098 million, up 1.2 percent (0.3 percent in real terms) on the previous month. In year-on-year comparison, broad money increased by 41.3 percent, or 30.7 percent in real terms.

Net foreign assets rose by 5.5 percent to RON 46,600 million, as a result of the 5.9 percent expansion under "Convertible currencies" and the 2.1 percent increase under "Gold" (following gold stock revaluation).

Net domestic assets dropped 4.1 percent to RON 34,498 million, with domestic credit edging up 1.1 percent to RON 46,700 million and the negative balance under "Other assets, net" widening 19.3 percent, largely on account of losses from revaluation of foreign exchange-denominated assets and liabilities, to RON -12,202 million.

In October, non-government credit stood 4.5 percent higher (3.6 percent in real terms) to RON 57,486 million, owing to the 7.4 percent growth of RON-denominated loans and the 2.5 percent increase in foreign exchange-denominated loans (when expressed in euro, forex loans inched down 0.1 percent). Loans to households (accounting for 35.4 percent of total non-government credit) moved up 5.1 percent compared with 7.1 percent in September, led by the 6.9 percent climb in RON-denominated loans (against 5.6 percent in the previous month) and the 3.4 percent rise in foreign exchange-denominated loans expressed in RON (when expressed in euro, forex loans to households equalled 0.9 percent, from 7.1 percent a month earlier). In year-on-year comparison, non-government credit surged 42.9 percent (32.2 percent in real terms) on the back of the 54.9 percent advance in RON-denominated loans (43.3 percent in real terms) and the 35.3 percent expansion in foreign exchange-denominated loans expressed in RON (when expressed in euro, forex loans leapt 51.5 percent).

Government credit, net, posted a negative balance of RON -10,786 million (compared with RON -8,799 million in September 2005), due mainly to the increase in deposits of the State Treasury's General Account.

Narrow money (M1) moved ahead 1.5 percent to reach RON 21,289 million. Behind this development stood the 3.8 percent increase in demand deposits (to RON 11,031 million) and the 0.8 percent decline in currency outside banks (to RON 10,258 million).

Quasi-money crept up 1.1 percent to RON 59,809 million. Household savings in RON inched up 0.1 percent to RON 16,193 million, accounting for 20 percent of broad money. At end-October 2005, household savings expanded year over year by 26.7 percent, or 17.2 percent in real terms.

Corporate deposits in RON went down 1.5 percent to RON 17,156 million. Time deposits fell by 2.7 percent to RON 12,637 million, certificates of deposit rose by one percent to RON 2,790 million, and restricted deposits grew by 3.1 percent to RON 1,729 million. At end-October 2005, corporate deposits in RON surged by 63.9 percent (51.6 percent in real terms) over the same year-ago period.

Deposits in foreign exchange of residents (natural and legal persons), when expressed in RON, stepped up 3.4 percent to RON 26,460 million (up 0.8 percent to EUR 7,249 million when expressed in EUR). Household deposits in foreign exchange increased by 4.6 percent to RON 10,635 million (when expressed in euro, they rose 2 percent to EUR 2,914 million). Corporate deposits in foreign exchange added 2.4 percent to RON 14,851 million (down 0.2 percent when expressed in euro to EUR 4,068 million). Year over year, residents' forex deposits expressed in euro increased by 49.4 percent, household deposits in foreign exchange expanded by 23.2 percent and corporate deposits in foreign exchange soared by 81.5 percent.

At end-October 2005, non-banks held government securities totalling RON 3,835 million (2.8 percent lower month on month), of which foreign exchange-denominated securities equalling EUR 180 million, up 2.2 percent from the previous month.