Banca Naţională a României

At end-June 2006, broad money (M2) amounted to RON 95,054 million, up 3.6 percent (3.4 percent in real terms) month over month. In year-on-year comparison, broad money increased 28.1 percent, or 19.6 percent in real terms.

Net foreign assets dropped by 1.9 percent to RON 43,692 million, as a result of "Convertible currencies" going down 1.2 percent and "Gold" falling 6.2 percent following gold stock revaluation.

Net domestic assets were 8.8 percent higher at RON 51,362 million against the background of the 7.3 percent rise in domestic credit to RON 67,343 million.

In June, non-government credit leapt 5.7 percent (5.6 percent in real terms) over May to RON 76,456 million. RON-denominated loans rose 6.4 percent, or 6.2 percent in real terms, while foreign currency-denominated loans expanded 5.0 percent when expressed in RON and 4.1 percent when expressed in euro. At end-June 2006, non-government credit jumped year on year by 56.2 percent (45.8 percent in real terms) on the back of the 104.9 percent upsurge in RON-denominated loans (91.3 percent in real terms) and the 23.8 percent growth of foreign currency-denominated loans expressed in RON (when expressed in euro, forex loans advanced 25.0 percent).

Government credit, net, posted a credit balance of RON 9,113 million (compared to RON 9,566 million in May 2006), due mainly to the decline in deposits of the General Account of Treasury.

Narrow money (M1) was up 6.5 percent to reach RON 27,780 million, on account of the 7.6 percent increase in currency outside banks and the 5.5 percent uplift in demand deposits.

Quasi-money added 2.4 percent to RON 67,274 million. Household savings in domestic currency edged up 2.1 percent to RON 18,380 million, accounting for 19.3 percent of broad money. In year-on-year comparison, household savings climbed 18.9 percent, or 11.0 percent in real terms.

Corporate deposits in domestic currency grew 2.8 percent to RON 21,017 million. Time deposits rose 2.8 percent (to RON 16,795 million), certificates of deposit inched up 0.8 percent (to RON 2,247 million) and restricted deposits expanded by 4.7 percent (to RON 1,975 million). At end-June 2006, corporate deposits in domestic currency rose by 41.2 percent, or 31.8 percent in real terms, over end-June 2005.

Deposits in foreign exchange of residents (natural and legal entities) saw an increase of 2.4 percent to RON 27,877 million when expressed in domestic currency and of 1.5 percent to EUR 7,811.9 million when expressed in euro. In year-on-year comparison, residents' forex deposits expressed in euro rose by 11.0 percent, household deposits in foreign exchange by 25.7 percent and corporate deposits in foreign exchange by 1.4 percent.

At end-June 2006, non-banks held government securities totalling RON 3,285 million, down 7.9 percent over the previous month. Domestic currency-denominated securities went down 2.9 percent to RON 3,285 million, while foreign exchange-denominated securities were fully redeemed by the Ministry of Public Finance. Government securities held by non-banks fell by 31.1 percent at end-June 2006 against the same year-ago period.