Banca Naţională a României

At end-November 2005, broad money (M2) amounted to RON 81,402 million, up 0.4 percent (albeit down 0.8 percent in real terms) month on month. In year-on-year comparison, broad money moved up 43.1 percent, or 31.7 percent in real terms.

Net foreign assets dropped by 2.3 percent to RON 45,529 million, due to the 3.4 percent decline under "Convertible currencies" and the 7 percent rise under "Gold", as a result of gold stock revaluation.

Net domestic assets added 4 percent to RON 35,873 million against the background of the 6.5 percent advance in domestic credit to RON 49,739 million and the widening of the negative balance by 13.6 percent under other assets, net, to RON -13,866 million.

In November, non-government credit increased 3.7 percent, or 2.5 percent in real terms, to RON 59,634 million, with its RON-denominated component further growing at a faster pace than the forex-denominated one. RON-denominated loans picked up 7.9 percent (6.6 percent in real terms), while forex-denominated loans expressed in RON edged up 0.7 percent (when expressed in euro, forex loans inched up 0.6 percent). In year-on-year comparison, non-government credit climbed 49.5 percent (37.6 percent in real terms) on account of the 61.6 percent rise in RON-denominated loans (48.7 percent in real terms) and the 41.3 percent expansion in foreign exchange-denominated loans expressed in RON (when expressed in euro, forex loans surged 48.8 percent).

Government credit, net, posted a negative balance of RON -9,895 million in November compared to RON -10,786 million in October, mainly as a result of dwindling forex holdings of the Ministry of Public Finance on accounts opened with the National Bank of Romania.

Narrow money (M1) diminished by 0.7 percent to RON 21,133 million, due to the 2.2 percent drop in demand deposits (to RON 10,784 million) and the 0.9 percent uptick in currency outside banks (to RON 10,349 million).

Quasi-money rose 0.8 percent to RON 60,269 million. Household savings in domestic currency added 0.7 percent to RON 16,305 million, accounting for 20 percent of broad money. In year-on-year comparison, household savings jumped 24.6 percent, or 14.6 percent in real terms.

Corporate deposits in RON stepped up 3.5 percent to RON 17,763 million. Specifically, time deposits and restricted deposits went up 5.5 percent (to RON 13,338 million) and 1.1 percent (to RON 1,749 million) respectively, while certificates of deposit dropped 4.1 percent (to RON 2,676 million). At end-November 2005, corporate deposits in RON climbed 68.1 percent, or 54.7 percent in real terms, over end-November 2004.

Deposits in foreign exchange of residents (natural and legal entities) crept down 1 percent to RON 26,201 million when expressed in domestic currency and 1.1 percent to EUR 7,169 million when expressed in euro. Moreover, when expressed in euro, residents' forex deposits increased year on year by 43.7 percent, household deposits in foreign exchange by 25.8 percent and corporate forex deposits by 60.1 percent.

At end-November 2005, non-banks held government securities equalling RON 3,831 million (down 0.1 percent month on month), of which foreign exchange-denominated securities were worth EUR 185.6 million, up 3.1 percent from the previous month.