Banca Naţională a României

At end-October 2006, broad money (M2) came in at RON 100,619 million, up 1.3 percent (1.1 percent in real terms) month on month. In year-on-year comparison, broad money rose 24.1 percent, or 18.4 percent in real terms.

Net foreign assets climbed 19.7 percent to RON 51,175 million, with "Convertible currencies" going up 22.8 percent and "Gold" inching down 0.7 percent. The advance under "Convertible currencies" was chiefly due to inflows consisting in proceeds from the privatisation of Banca Comercială Română (EUR 2,209.9 million).

Net domestic assets went down 12.6 percent to RON 49,444 million against the background of the 8.3 percent drop in domestic credit to RON 67,602 million.

In October, non-government credit edged up month on month 4.4 percent (4.2 percent in real terms) to RON 89,017 million. RON-denominated loans rose 3.7 percent (3.5 percent in real terms), while foreign currency-denominated loans increased by 5.2 percent when expressed in RON (up 5.5 percent when expressed in euro).

At end-October 2006, non-government credit leapt year on year by 54.9 percent (47.8 percent in real terms) on the back of the 93.9 percent surge in RON-denominated loans (85 percent in real terms) and the 26.4 percent growth of foreign currency-denominated loans expressed in RON (when expressed in euro, forex loans expanded by 31.1 percent).

Government credit, net, posted a credit balance of RON 21,415 million in October 2006 (compared to RON 11,530 million in September 2006), mainly as a result of (i) the increase in the foreign currency-denominated current account of the Ministry of Public Finance opened with the National Bank of Romania (up RON 7,895.1 million) owing to the proceeds from the privatisation of Banca Comercială Română and (ii) the rise in the balance of the General Account of the Treasury (up RON 1,907.9 million) as a result of quarterly tax collections.

Narrow money (M1) edged up 0.6 percent to RON 30,574 million, on account of the 4 percent increase in demand deposits and the 3.2 percent decline in currency outside banks.

Quasi-money added 1.6 percent to RON 70,045 million. Household savings in domestic currency rose by 2.2 percent to RON 19,219 million, accounting for 19.1 percent of broad money. In year-on-year comparison, household savings climbed 18.7 percent, or 13.2 percent in real terms.

Corporate deposits in domestic currency dropped 1.9 percent to RON 21,031 million. Time deposits went down 2.9 percent (to RON 16,773 million), certificates of deposits crept down 4.9 percent (to RON 1,968 million), and restricted deposits jumped 9.4 percent (to RON 2,290 million). At end-October 2006, corporate deposits in domestic currency rose by 22.6 percent, or 17 percent in real terms, over end-October 2005.

Deposits in foreign exchange of residents (natural and legal entities) grew by 3.8 percent to RON 29,795 million when expressed in domestic currency and by 4.1 percent to EUR 8,462 million when expressed in euro. In year-on-year comparison, residents' forex deposits expressed in euro picked up 16.7 percent, household deposits in foreign exchange by 38.2 percent and corporate deposits in foreign exchange by 2.3 percent.

Government securities held with non-banks decreased 1.8 percent month on month to RON 3,136 million. At end-October 2006, government securities held with non-banks dropped 18.2 percent compared with the same year-ago period.