Banca Naţională a României

At end-May 2006, broad money (M2) amounted to RON 91,747 million, up 4.2 percent (3.6 percent in real terms) month over month. In year-on-year comparison, broad money increased 27.5 percent, or 18.9 percent in real terms.

Net foreign assets dropped by 0.9 percent to RON 44,521 million, as a result of "Convertible currencies" going down 1.3 percent and "Gold" rising 1.8 percent following gold stock revaluation.

Net domestic assets were 9.5 percent higher at RON 47,226 million against the background of the 6.5 percent rise in domestic credit to RON 62,744 million.

In May, non-government credit leapt 6.1 percent (5.5 percent in real terms) over April to RON 72,310 million. RON-denominated loans rose 7.3 percent, or 6.7 percent in real terms, while foreign currency-denominated loans expanded 4.9 percent when expressed in RON and 3.0 percent when expressed in euro. At end-May 2006, non-government credit jumped year on year by 53.5 percent (43.1 percent in real terms) on the back of the 100 percent rise in RON-denominated loans (86.4 percent in real terms) and the 22.6 percent growth of foreign currency-denominated loans expressed in RON (when expressed in euro, forex loans advanced 25.5 percent).

Government credit, net, posted a credit balance of RON 9,566 million (compared to RON 9,213 million in April 2006), due mainly to redemption of government securities launched by the Ministry of Public Finance on the domestic market.

Narrow money (M1) rose 6.0 percent to RON 26,080 million, on account of the 11.2 percent increase in demand deposits and the 1.0 percent uptick in currency outside banks.

Quasi-money added 3.5 percent to RON 65,667 million. Household savings in domestic currency edged up 2.7 percent to RON 17,996 million, accounting for 19.6 percent of broad money. In year-on-year comparison, household savings climbed 16.8 percent, or 8.9 percent in real terms.

Corporate deposits in domestic currency grew 5.3 percent to RON 20,449 million. Time deposits surged 6.6 percent (to RON 16,334 million), certificates of deposit inched up 0.9 percent (to RON 2,228 million), while restricted deposits shrank 0.2 percent (to RON 1,887 million). At end-May 2006, corporate deposits in domestic currency rose by 38.5 percent, or 29.1 percent in real terms, over end-May 2005.

Deposits in foreign exchange of residents (natural and legal entities) saw an uplift of 2.7 percent to RON 27,222 million when expressed in domestic currency and of 0.9 percent to EUR 7,692.8 million when expressed in euro. In year-on-year comparison, residents' forex deposits expressed in euro increased by 13.0 percent, household deposits in foreign exchange by 26.0 percent and corporate deposits in foreign exchange by 4.4 percent.

At end-May 2006, non-banks held government securities totalling RON 3,568 million (down 8.9 percent over the previous month), of which foreign exchange-denominated securities were equivalent to EUR 52.2 million, down 64.7 percent against April 2006.