At end-February 2006,
broad money (M2) came in at RON 85,677 million, down 0.1 percent (-0.3 percent in real terms) month on month. In year-on-year comparison, broad money increased 31.4 percent, or 21.1 percent in real terms.
Table 1. Broad money and its counterpart
| INDICATOR |
28 February 2006
(RON mill.) |
February 2006/ January 2006
(%) |
February 2006/ February 2005
(%) |
| Broad money (M2) |
85,677 |
-0.1 |
31.4 |
| Net foreign assets |
45,643 |
-1.8 |
26.7 |
| Net domestic assets |
40,034 |
2.0 |
37.1 |
Net foreign assets declined 1.8 percent to RON 45,643 million, with "Convertible currencies" going down 1.5 percent and "Gold" falling 4.2 percent as a result of gold stock revaluation.
Net domestic assets went up 2.0 percent to RON 40,034 million against the background of the 0.4 percent rise in domestic credit to RON 54,303 million.
Table 2. Domestic credit and its components
| INDICATOR |
28 February 2006
(RON mill.) |
February 2006/ January 2006
(%) |
February 2006/ February 2005
(%) |
| Domestic credit |
54,303 |
0.4 |
47.1 |
| Non-government credit |
62,404 |
1.3 |
50.2 |
| Government credit, net |
-8,101 |
- |
- |
In February, non-government credit edged up 1.3 percent (1.0 percent in real terms) to RON 62,404 million. RON-denominated loans rose 5.3 percent (5.0 percent in real terms), while foreign currency-denominated loans fell by 2.4 percent when expressed in RON (up 1.3 percent when expressed in euro).
At end-February 2006, non-government credit leapt year on year by 50.2 percent (38.5 percent in real terms) on the back of the 84.3 percent surge in RON-denominated loans (69.8 percent in real terms) and the 27.1 percent growth of foreign currency-denominated loans expressed in RON (when expressed in euro, forex loans expanded by 33.0 percent).
Table 3. Non-government credit and its components
| INDICATOR |
28 February 2006
(RON mill.) |
February 2006/ January 2006
(%) |
February 2006/ February 2005
(%) |
| Non-government credit (total) |
62,404 |
1.3 |
50.2 |
| RON-denominated non-government credit, of which: |
30,944 |
5.3 |
84.3 |
| - household credit
| 13,223 |
5.1 |
105.0 |
| - corporate credit
| 17,721 |
5.4 |
71.3 |
| Forex-denominated non-government credit, of which: |
31,460 |
-2.4 |
27.1 |
| - household credit |
9,392 |
-1.5 |
64.2 |
| - corporate credit |
22,068 |
-2.8 |
16.0 |
Government credit, net, posted a negative balance of RON -8,101 million (compared to RON -7,566 million in January 2006), mainly as a result of the increase in deposits in the General Account of the Treasury.
Narrow money (M1) dropped 0.2 percent to RON 23,508 million, on account of the 1.9 percent decrease in demand deposits and the 1.7 percent rise in currency outside banks.
Table 4. Narrow money and its components
| INDICATOR |
28 February 2006
(RON mill.) |
February 2006/January 2006
(%) |
February 2006/ February 2005
(%) |
| M1 |
23,508 |
-0.2 |
59.1 |
| Currency outside banks |
11,165 |
1.7 |
45.8 |
| Demand deposits |
12,343 |
-1.9 |
73.4 |
Quasi-money remained at a relatively stable level (RON 62,169 million). Household savings in domestic currency inched up 0.8 percent to RON 17,350 million, accounting for 20.3 percent of broad money. In year-on-year comparison, household savings climbed 17.2 percent, or 8.0 percent in real terms.
Corporate deposits in domestic currency slipped 1.2 percent to RON 18,584 million. Time deposits went down 1.0 percent (to RON 14,143 million), restricted deposits declined by 0.9 percent (to RON 1,898 million), while certificates of deposit crept down 2.4 percent (to RON 2,542 million). At end-February 2006, corporate deposits in domestic currency rose by 42.7 percent, or 31.5 percent in real terms, over end-February 2005.
Deposits in foreign exchange of residents (natural and legal entities) grew by 0.3 percent to RON 26,235 million when expressed in domestic currency and by 4.2 percent to EUR 7,536 million when expressed in euro. In year-on-year comparison, residents' forex deposits expressed in euro jumped by 21.4 percent, household deposits in foreign exchange by 28.1 percent and corporate deposits in foreign exchange by 16.7 percent.
Table 5. Quasi-money and its components
| INDICATOR |
28 February 2006
(RON mill.) |
February 2006/ January 2006
(%) |
February 2006/ February 2005
(%) |
| Quasi-money |
62,169 |
0.003 |
23.3 |
| Household savings in RON |
17,350 |
0.8 |
17.2 |
| Corporate deposits in RON |
18,584 |
-1.2 |
42.7 |
| Residents' forex deposits, of which: |
26,235 |
0.3 |
16.1 |
| - household deposits |
11,422 |
0.1 |
22.4 |
| - corporate deposits |
14,813 |
0.5 |
11.6 |
At end-February 2006, non-banks held government securities totalling RON 3,949 million (up 0.5 percent month on month), of which foreign exchange-denominated securities equalled EUR 179.7 million, up 3.2 percent from the previous month.
Table 6. Government securities held by non-banks
| INDICATOR |
28 February 2006
|
February 2006/ January 2006
(%) |
February 2006/ February 2005
(%) |
| RON-denominated government securities (RON million) |
3,324 |
0.7 |
-35.6 |
| Forex-denominated government securities (EUR million) |
179.7 |
3.2 |
-4.1 |