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NATIONAL BANK OF ROMANIA

ANNUAL REPORT

2003

ISSN 1453 3928

Note
Annual Report for 2003 was examined and approved by the Board of Directors of the National
Bank of Romania on 21 June 2004 and was submitted to Parliament pursuant
to Law No. 101/1998 The NBR Act.
Some of the data for the period covered are provisional and will be updated as appropriate in
the subsequent publications.
Sources of data are mentioned when institutions other than the National Bank of Romania
supplied data.
The drafting, English version and technical co-ordination of the Annual Report for 2003 were
carried out by the Research and Publications Department.
Reproduction of the publication is forbidden. Data may be used only by indicating the source.
National Bank of Romania, 25 Lipscani Street, sector 3, postal code 030031, Bucharest
Telephone: 4 021/312 43 75; fax: 4021/314 97 52

www.bnro.ro

ROMANI A
- Overview -

1. Location

In the South-eastern part of Central Europe, inside and outside the Carpathians
range, on the lower course of the Danube (1,075 km), with exit to the Black Sea
(coast line 245 km);
Boundaries: 3,150 km;
Neighbouring countries: Bulgaria, Hungary, the Republic of Moldova, Ukraine and
Serbia-Montenegro.

2. Area

238,391 sq. km (ranking twelfth in Europe);


Land use: farmland 62 percent (of which 39 percent arable land), forest 28 percent,
other 10 percent.
21.7 million inhabitants on 1 July 2003 (ranking ninth in Europe);
Density: 91 inhabitants/sq. km;
Urban: 52.7 percent;
Ethnic structure: Romanians 89.5 percent, Hungarians 6.6 percent, other 3.9
percent;
Administrative organisation: 42 counties, including Bucharest Municipality
(enjoying county status); 268 towns (97 municipalities) and 2,698 communes;
Capital city: Bucharest (1.9 million inhabitants);
Official language: Romanian.

3. Population

4. Government

Republic;
Legislative body: Parliament (Senate and Chamber of Deputies);
Executive body: government headed by Prime-Minister (appointed by the President,
following returns of general elections);
President elected by universal vote for a five-year mandate.

5. Currency

Romanian leu (ROL); fractional coin ban;


Current account convertibility and partial capital account convertibility;
Exchange rate set in the interbank forex market on a daily basis;
reference currency euro.

ABBREVIATIONS
APMSO
BARA
BET
BIS
BSE

Authority for Privatisation and Management of State Ownership


Bank Assets Resolution Authority
Bucharest Exchange Trading Index
Bank for International Settlements
Bucharest Stock Exchange

BSTDB

Black Sea Trade and Development Bank

BUBID

Bucharest Interbank Bid Rate

BUBOR

Bucharest Interbank Offered Rate

EBRD

European Bank for Reconstruction and Development

ECB

European Central Bank

EIB

European Investment Bank

EMU

Economic and Monetary Union

ERM

Exchange Rate Mechanism

EU

European Union

FIC

Financial Investment Company

IBEC

International Bank for Economic Co-operation

IBRD

International Bank for Reconstruction and Development

IIB

International Investment Bank

IMF

International Monetary Fund

ISC

Insurance Supervisory Commission

NBR

National Bank of Romania

NEA

National Employment Agency

OECD

Organisation for Economic Co-operation and Development

PEP

Pre-Accession Economic Programme

PSAL

Private Sector Adjustment Loan

RASDAQ

Romanian Association of Securities Dealers Automated

SME

Small- and Medium-sized Enterprises

VAT

Value Added Tax

CONTENTS
Overview of the main economic, financial, monetary
and foreign exchange developments in 2003 ...........................................................................9
A. Development of macroeconomic indicators .......................................................9
B. Correlation of macroeconomic policies ............................................................12
C. Relations with international organisations........................................................16
D. Banking system development ...........................................................................17
Chapter 1. World economy .....................................................................................................20
A. Overview ..........................................................................................................20
B. Eurozone ...........................................................................................................21
C. Transition economies ........................................................................................22
Chapter 2. National economy .................................................................................................27
A. GDP by origin and expenditure ........................................................................27
B. Prices, incomes and employment......................................................................31
C. Balance of payments and international investment position.............................37
D. Fiscal developments .........................................................................................42
Chapter 3. Monetary policy....................................................................................................49
A. Monetary policy ..............................................................................................49
1. Monetary policy goals and guidelines..........................................................49
2. Implementation of monetary policy .............................................................50
3. External constraint........................................................................................55
4. The impact of fiscal developments ...............................................................57
5. Monetary policy tools...................................................................................58
B. Monetary and financial developments ..........................................................62
1. Money and credit..........................................................................................62
2. Financial markets .........................................................................................66
Chapter 4. Financial stability and prudential supervision ..................................................80
A. The Romanian banking sector composition, performance and risks .............80
B. Agreements on financial stability and prudential supervision ..........................91
C. Licensing and regulation of credit institutions..................................................92

Chapter 5. Currency issue ....................................................................................................102


Chapter 6. The Romanian payment system ........................................................................104
Chapter 7. European integration and international financial relations...........................110
A. European integration.......................................................................................110
B. Relations with international financial institutions ..........................................117
Chapter 8. Management of international reserves of Romania ........................................122
A. Developments in international reserves..........................................................122
B. Developments on international financial markets...........................................124
C. Management of international reserves ............................................................125
Chapter 9. Development of NBR functions .........................................................................128
A. Restructuring of NBR activity ........................................................................128
B. Challenges of shifting to a new monetary policy strategy ..............................130
Organisation chart of the National Bank of Romania as of 31 December 2003 ................132
Chapter 10. Other activities of the National Bank of Romania ........................................134
Chapter 11. Financial statements of the National Bank of Romania
as of 31 December 2003 ....................................................................................138
A. Balance sheet .................................................................................................138
B. Profit and loss account...................................................................................144
Chapter 12. Objectives and guidelines of NBR policies for 2004 ......................................149
ANNEXES
Banks in Romania as of 31 December 2003 ......................................................................154
National Bank of Romania publications as of 31 December 2003.....................................156
Main papers submitted to Parliament
by the National Bank of Romania in 2003 .........................................................................156
LEGISLATIVE INDEX
Main rules and regulations adopted in the economic,
financial and banking areas in 2003 ...................................................................................159
Main regulations issued by the National Bank of Romania in 2003 ..................................174
CHARTS SECTION
STATISTICAL SECTION

LIST OF TABLES
Macroeconomic Indicators of Selected Central and East European Countries, 1999-2003 ...........25
Current Account..............................................................................................................................38
Current Account Deficit Financing.................................................................................................40
Consolidated General Government Balance...................................................................................43
Market Share of Banks and Foreign Bank Branches......................................................................81
Banks and Foreign Bank Branches as a Share in Aggregate Capital..............................................82
Foreign Participations in the Share Capital of Banks in Romania .................................................83
Banks Operating in Romania by Ownership ..................................................................................84
Key Prudential Indicators ...............................................................................................................86
Net Assets and Own Funds as at 31 December 2003 ...................................................................101
Balance Sheet of the National Bank of Romania .........................................................................140
Composition of Assets and Liabilities ..........................................................................................141
Composition of Assets ..................................................................................................................141
Composition of Liabilities ............................................................................................................142
Banks Deposits with the NBR as at 31 December 2003..............................................................144
Profit and Loss Account ...............................................................................................................145
Overheads .....................................................................................................................................148
The 2003 Budget ..........................................................................................................................148
LIST OF CHARTS
Contribution of the Main Supply Components to GDP Growth.....................................................27
Contribution of the Main Demand Components to GDP Growth ..................................................30
Consumer Prices in 2003 ................................................................................................................32
Labour Productivity and Real Gross Average Wage in Manufacturing in 2003.............................35
Number of Employees and Unemployment Rate in 2003 ..............................................................36
Current Account Deficit and Direct Investment .............................................................................39
External Indebtedness Indicators....................................................................................................41
Policy Rate in 2003.........................................................................................................................51
NBR Deposit-taking Operations in 2003........................................................................................60
Broad Money in 2003 .....................................................................................................................62
Non-Government Credit in ROL in 2003 .......................................................................................65
Gross International Reserves in 2003 .............................................................................................66
Net International Reserves in 2003.................................................................................................66
Average Interest Rates in 2003 .......................................................................................................71
Interbank Foreign Exchange Market in 2003 .................................................................................73
Forex Market Surplus/Deficit in 2003............................................................................................74
Bucharest Stock Exchange in 2003 ................................................................................................77
Bucharest Stock Exchange Indexes in 2003 ...................................................................................77
RASDAQ Market in 2003 ..............................................................................................................78
RASDAQ Indexes in 2003 .............................................................................................................78
International Reserves .................................................................................................................122
Composition of Forex Reserves by Assets ...................................................................................125
Composition of Government Securities Portfolio by Issuer.........................................................126

Annual
Report
2003

Overview of the main economic, financial, monetary


and foreign exchange developments in 2003
A. Development of macroeconomic indicators
In 2003, the good performance Romania recorded over the past few years
continued in terms of economic growth, disinflation, control over budget deficit,
and cut in unemployment. Nevertheless, exports were no longer the main driver of
economic growth (as in 2002) but domestic demand, boosted by rapid credit
expansion, higher real wages, and, to a certain extent, by larger arrears.
Worsening of the current account as a result of stronger domestic demand
underscores the need to strengthen the positive trends across the Romanian
economy. In order to uphold those tendencies and avoid slippages, it is imperative
to expedite restructuring at corporate level and maintain the prudent stance at
macroeconomic level.
The objectives of 2003 economic programme were to a great extent achieved, as
follows:

GDP growth, originally forecast at 5.2 percent and subsequently revised to 4.8
percent, stood at 4.9 percent, placing Romania third among the 12 EU
applicant countries1;

inflation rate, as measured by the consumer price index (December/December),


ran at 14.1 percent, very close to the 14 percent target;

consolidated general government deficit reached 2.3 percent of GDP, below


the originally planned level of 2.65 percent of GDP2;

balance-of-payments current account deficit rose to 5.7 percent of GDP


compared with the initial estimate of 5 percent of GDP amid booming
domestic demand in particular;

official reserves expanded to EUR 7.5 billion at year-end, reaching 4.1 months
of import cover; and

unemployment rate receded further, touching 7.2 percent.

Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and
Slovenia joined the EU on 1 May 2004.
2
According to the methodology developed by the IMF

National Bank of Romania

Annual
Report
2003
Overview of the main economic, financial, monetary and foreign exchange developments in 2003

The performance seen in 2003 raised yet again the issue of the tempo and the
drivers of economic growth. Swift-paced GDP growth is desirable from the
perspective of catching-up with the incumbent EU member states; nonetheless, the
sustainability of such a pace in the medium- and long-run hinges on the specific
features of the economic growth model under implementation. With domestic
demand as the prime mover of economic growth, keeping inflation under control
and maintaining external balance pose certain risks. There is an increased
likelihood for such risks, adversely affecting the credibility of policies pursued by
the authorities, to hit an insufficiently restructured economy where foreign direct
investment is still scant, as it is the case of Romania. The limited capacity of
domestic supply to meet demand caused home market equilibrium and further
disinflation to be highly contingent upon larger imports, which were secured
chiefly via autonomous flows, hinting at an improvement compared to financing
from public or publicly-guaranteed borrowings. The best way to ensure deficit
financing is through foreign direct investment which, although higher in 2003,
remained relatively low as a share in current account deficit financing.
Disinflation carried on in 2003 for the fourth straight year. This was the result of
the interplay of several factors, some of them entailing positive effects and other
negative effects. Among disinflation-boosting factors, the following deserve
mention:

slowdown in nominal depreciation of the domestic currency against the


implicit EUR/USD basket3;

lower magnitude of adjustment of administered prices, from 23.5 percent in


2002 to 17.4 percent in 2003. As a result of such rates of increase, administered
prices contributed 3.8 percentage points to inflation, compared with 4.6
percentage points a year earlier;

stable taxation. The small package of tax measures (such as the upping of
excise duties on tobacco, alcoholic beverages and liquid fuel) had but a limited
impact on inflation; and

positive developments in import prices of consumer and industrial goods,


sending the unit value of imports down by 3.3 percent compared to 2002.

By contrast, a number of factors put pressure on prices:

10

the raise in the gross average wage by 23.6 percent in nominal terms and 7.2
percent in real terms. Pay rises were reported by loss-making industries as
well. Such developments bring about inflationary pressures both directly, as
60 percent EUR and 40 percent USD. The composition of the currency basket was altered in
January 2004, as follows: 75 percent EUR and 25 percent USD.

National Bank of Romania

Annuat
Report
2003
Overview of the main economic, financial, monetary and foreign exchange developments in 2003

the ensuing demand cannot be matched by aggregate supply, and indirectly, as


it stirs confusion on the progress of reform;

the increase in consumer demand, driven by larger household incomes and the
policy of rapid household credit expansion promoted by most commercial
banks. With a view to purchasing consumer goods, households proceeded to
make borrowings and even cut back on their savings. As a result, household
savings (in ROL) subsided by a real 1.8 percent at end-2003 compared to end2002; and

continued build-up of arrears. This drove inflation up both directly, leading to


an artificial rise in aggregate demand and indirectly entailing adverse selection
and moral hazard.

The narrowing of the consolidated general government deficit helped buttress


disinflation. Behind the undershooting of the budget deficit objective stood the
satisfactory revenue collection (accounting for 30 percent of GDP as compared
with a 30.1 percent target) amid slightly lower expenses (32.3 percent of GDP as
compared with a 32.7 percent target). Nevertheless, it is to be pointed out that
budget implementation was uneven, with nearly two thirds of the deficit being
posted in December 2003, thus leading to higher seasonal inflationary pressures.
Exchange rate policy was calibrated so as to achieve the goal of curbing inflation,
without putting unsustainable pressure on the balance of payments. The central
banks intervention in the forex market was aimed at avoiding excessive exchange
rate swings, maintaining a sufficient level of foreign exchange reserves and,
particularly in the second half of the year, at alleviating the appreciation trend of
the domestic currency on the background of sustained forex inflows. Over 2003,
the foreign exchange developments were mainly the following:

the NBR was a net seller of foreign exchange for 5 months and a net purchaser
for 7 months in 2003. Its net purchases amounted to EUR 523.4 million4;

the domestic currency exhibited a real appreciation of 3.3 percent in real terms
versus the implicit EUR/USD basket. The divergent developments of the two
currencies caused the ROL to strengthen by 16.3 percent against the USD and
weaken by 3.7 percent against the EUR;

the NBRs official reserves came in at EUR 7.5 billion from EUR 7 billion at
end-2002. They covered 4.1 months of imports (versus 4.2 months in 2002,
due to faster import growth), an adequate level by international standards.

Based on transaction date

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Annual
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2003
Overview of the main economic, financial, monetary and foreign exchange developments in 2003

In early 2003, the NBR decided to switch to the EUR as the reference currency in
the forex market, given the prevalence of EUR-denominated commercial
transactions, the composition of external debt by currency, and the requirements
for joining the EU. Considering that the implicit currency basket remained the
same, the switch to the new reference currency did not cause any tensions in the
market.
Unemployment rate dropped 1.2 percentage points in the course of the year to 7.2
percent in December. Behind this development stood the continued GDP growth,
the measures taken to boost employment in compliance with the social programme
for 2002-2003 and Law No. 76/2002, but also other factors such as stepped-up
migration, informal sector, as illustrated by the gap between the decline in the
number of the unemployed (by 101.7 thousand) and the increase in the number of
employees (by 2.8 thousand).

B. Correlation of macroeconomic policies


Unlike the monetary and fiscal policies, which were broadly correlated in 2003, the
progress of structural reforms (cut in arrears, restructuring and privatisation) fell
short of expectations. Furthermore, the wage policy was looser than expected,
which brought about additional constraints, entailing a tighter monetary stance
throughout the year with a view to ensuring macroeconomic equilibria and
achieving the inflation target.
In 2003, monetary policy faced the following main challenges:

notable increase in domestic demand, spurred by the revival of household


consumption, against the background of delayed structural reforms;

the need to preclude speculative financial inflows amid the ongoing capital
account liberalisation;

further real appreciation of the domestic currency versus the implicit


EUR/USD basket, without affecting external competitiveness, in the context of
large swings in the EUR/USD rate.
The overall economic situation called for a change in the stance of the monetary
policy, while its goals were kept unaltered. In the first few months of 2003, interest
rates stayed on the downward trend apparent ever since 2002, underpinned also by
the cautious implementation of the government budget. The gradual cut in the
interest rate on sterilisation operations (from 19.6 percent in December 2002 to
17.4 percent in March 2003) was justified by the sharper downturn in the annual
inflation rate, as well as by the lingering risk of speculative capital inflows, on the

12

National Bank of Romania

Annuat
Report
2003
Overview of the main economic, financial, monetary and foreign exchange developments in 2003

backdrop of a further stage of capital account liberalisation implemented in January


2003.
In 2003 Q2, the NBR stopped loosening the monetary stance and starting with Q3
it proceeded proactively to gradually lift its policy rate (in August, October and
November, each time by one percentage point, to 21.25 percent). Underlying this
move was the strong growth of domestic consumption which, given the insufficient
elasticity of domestic supply, entailed the expansion of imports and the risk of
unsustainable worsening of the balance of payments.
The decision to tighten monetary policy was predicated on the following
assessment of the developments in domestic demand:

the hike in the economy-wide minimum wage had entailed higher-thananticipated wage growth amid soft budget constraints at corporate level;

an increase in domestic demand at the expense of the budget deficit was


expected for late 2003. The fact that the government budget had been virtually
balanced until August hinted at public expenditures going far beyond revenues
in the final months of 2003, even though the deficit for the year as a whole
appeared to be lower than the original forecast;

despite the inconclusive data concerning structural reforms and arrears, the
clearly-cut trend of current account worsening pointed to certain delays putting
pressure on domestic demand.

In addition, the developments in the banking system, which were generally normal
and partly desirable, also helped push domestic demand higher:

the boom in domestic credit, especially household lending. Banks resorted


widely to foreign funds to secure financing for those loans; and

depressed household interest in saving amid lowering deposit rates5.

Despite the steps aimed at tightening monetary policy, the climb in nongovernment credit was much faster in 2003 (48.5 percent in real terms) than in
2002 (28.3 percent). It should be pointed out that household lending soared by
214.6 percent in real terms. Although the share of non-government credit in GDP is
still low (16 percent), such growth rates may endanger a banks financial position
because of the credit risk attached. Therefore, the central bank took several
prudential steps, effective in 2004, aimed to moderate booming credit and make it
5

The NBR cut in the interest rate on liquidity-absorbing operations by 2.2 percentage points
(accounting for 11 percent of the initial level) was followed by the 3.1 percentage point lowering in
the banks average interest rate on ROL-denominated deposits (from 15.6 percent in January to 12.5
percent in April, constituting some 20 percent of the initial level).

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2003
Overview of the main economic, financial, monetary and foreign exchange developments in 2003

grow at sustainable rates, with the need for long-lasting deepening of financial
intermediation remaining high on the agenda.
The developments throughout 2003 underscored the limitations of the transmission
mechanism, in spite of its obvious improvement, and substantiated the proactive
stance of monetary policy, i.e. taking corrective measures before getting unwishedfor effects. Some of those limitations originate in the very nature of monetary
policy: its actions are non-discriminatory; its effects emerge with a certain timelag, which lengthens as markets develop; it can only partly replace some other
economic policy measures. Moreover, its being used as a substitute runs the risk of
limited efficiency and can deliver adverse side effects.
Beyond general limitations, the transmission mechanism is affected, given the
current state-of-affairs in Romania, by the net debtor position of the National Bank
of Romania vis--vis commercial banks and by their easier access to foreign funds.
Capital account liberalisation carried on in accordance with the calendar agreed
by the Government following talks with the EU on Chapter 4 Free Movement of
Capital, a calendar transposed into Circular No. 26/2001 issued by the National
Bank of Romania. Accordingly, as from 1 January 2003, the following operations
have no longer been subject to NBR licensing: transactions by residents in
securities and units of foreign collective investment undertakings; short-term
financial loans and credits granted by non-residents to residents; financial loans
and credits and personal loans granted by residents to non-residents; sureties, other
guarantees granted by residents to non-residents. As a result, this Chapter was
subject to provisional closure at the Romania-EU Inter-Governmental Conference
on 7 April 2003. Bearing in mind that, in order to avert speculative inflows,
liberalisation of non-residents access to ROL-denominated deposits was delayed
for 2005, the removal of restrictions on capital movements in 2003 left their
composition unscathed. Although potentially volatile capital inflows6 were on the
rise (from EUR 734 million in 2002 to EUR 1,290 million in 2003), this appears to
be rather the result of a more stable macroeconomic environment, improved
investor sentiment, and the favourable differential between domestic and foreign
interest rates.
Open-market operations remained, in 2003 as well, the main instrument the central
bank resorted to. However, their features were partly changed, namely deposittaking operations constituted the sole tool the National Bank of Romania used in its
effort to drain excess liquidity, the maximum accepted interest rate started to be
6

14

Inflows comprising portfolio investments (except government and corporate bonds), short-term
loans and credits granted by non-residents to residents and deposits made by non-residents in
Romania

National Bank of Romania

Annuat
Report
2003
Overview of the main economic, financial, monetary and foreign exchange developments in 2003

announced when the auction sessions at the new interest rate levels were held, and
the maximum maturity of operations was shortened; in addition, starting May
2003, the NBR took deposits with maturity of one-month alone. The total volume
of liquidity-absorbing operations rose from 23.3 percent in 2002 to 38 percent
share-to-GDP in 2003, but the costs attached thereto slid from one percent to 0.6
percent of GDP.
The required reserve mechanism retained the features it had exhibited at end-2002.
The choice of leaving required reserve ratio on ROL-denominated deposits
unchanged relied on the persistently high excess liquidity in the banking system.
The maintenance of the differential between required reserve ratio on ROLdenominated deposits and that on foreign-exchange-denominated deposits was
aimed at putting a cap on lending in foreign exchange by influencing relative costs.
Fiscal policy and monetary policy enjoyed a good co-ordination for most of 2003.
The consolidated general government deficit was kept at bay, slowing down the
growth of domestic absorption and helping curb inflationary pressures. However, a
trend reversal was manifest in late 2003, causing the December shortfall to be
equal to two thirds of the annual figure. The shift in fiscal policy stance, sending
domestic demand higher, ran counter to the tight monetary stance focused on
cushioning inflationary pressures induced by expansion in consumption. For the
inflation target to be met, monetary policy stance had to be tightened further. The
need to prevent the knock-on effects of a large part of the full-year consolidated
general government deficit being recorded in only one month from fuelling
inflation caused monetary policy to remain tight until mid-2004.
Implementation of monetary policy was made more difficult by the manner in
which deficit financing and public debt refinancing were ensured. Thus, the
Ministry of Public Finance attached a high priority to cutting interest costs for the
budget deficit to stay on track, which caused the primary market for ROLdenominated government securities to lose in depth (due not only to the low deficit
but also to the preference for other financing sources) and the yields on Treasury
bills to depart from central bank rates. The constraints on the central banks
interest-rate policy left aside, the Treasurys almost exclusive resort to foreign
funds hurt liquidity policy as well. While in the first half of 2003 the Treasurys
operations materialised in a net absorption of more than ROL 16,000 billion, after
the launch of the Eurobond issue the public authority made an injection of some
ROL 5,400 billion, thereby overburdening the monetary authoritys sterilisation
efforts.
The steps taken in respect of income policy (the raise in economy-wide minimum
wage, further realignment of pensions, above-inflation-rate increase in social

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Overview of the main economic, financial, monetary and foreign exchange developments in 2003

transfers, larger access to various types of social assistance), albeit justified from a
social perspective, failed to provide an underpinning to disinflation, putting
pressure both on demand side and supply side. Given that, in the tradables sector as
a whole, pay rises were in line with productivity gains, such steps did not endanger
competitiveness and therefore the export performance. Yet, stronger consumer
demand could not be met otherwise than by lifting imports.
In 2003, structural reform posted mixed developments. On the one hand,
privatisation painted a brighter picture in year-on-year comparison, also as a result
of taking restructuring and rescaling steps in respect of the companies put up for
sale by the Authority for Privatisation and Management of State Ownership.
Furthermore, the privatisation of Banca Comercial Romn made headway, with
the EBRD and IFC acquiring an equity participation of 25 percent plus two shares
in the bank. According to the banks privatisation strategy, a strategic investor is to
take over the majority stake in the coming three years.
On the other hand, gross arrears built up by the companies monitored consistent
with Government Emergency Ordinance No. 79/20017 rose by a real 4.8 percent
year on year to more than ROL 154,000 billion. Moreover, none of the big names
of companies subordinated to the Ministry of Trade and Commerce was included in
the list of privatisation deals in 2003. This action was delayed for 2004, when the
countrys oil company Petrom and two electricity distribution companies, i.e.
Electrica Banat and Electrica Dobrogea, are due to be sold, and preparatory work
for privatising two gas distributors Distrigaz Nord and Distrigaz Sud is
scheduled to begin.

C. Relations with international organisations


Since December 1999, when Romania was invited to start negotiations for joining
the European Union, the latters role in formulating domestic economic policies
has increased steadily. In this vein, the negotiations on the chapters of the acquis
communautaire were the most significant tool. In 2003 H1, Romania closed
provisionally three chapters, namely Chapter 1 Free movement of goods, Chapter
4 Free movement of capital and Chapter 10 Taxation, with the NBR having a
considerable contribution to the negotiations on Chapter 4.
In the second half of 2003, other three chapters were subject to provisional closure,
i.e. Chapter 2 Freedom of movement for persons, Chapter 9 Transport policy
and Chapter 28 Financial control, taking the number of chapters closed to 22 out
of 30. For 2004, the Romanian authorities aim to complete negotiations on all
7

16

The number of monitored companies fell from 86 to 73.

National Bank of Romania

Annuat
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2003
Overview of the main economic, financial, monetary and foreign exchange developments in 2003

chapters; by June 2004, two more chapters, i.e. Chapter 7 Agriculture and
Chapter 29 Financial and budgetary provisions, were closed, taking the number
of chapters closed to 24.
In 2003, the NBR covered all stages with a view to contracting funds worth EUR
4 million through 2001 PHARE National Programme for Romania, titled
National Bank of Romania Institution Building. Furthermore, in December, the
Government of Romania signed the 2003 PHARE Financing Memorandum with
the European Commission whereby the NBR was granted a EUR 4 million credit
line to ensure financing of six subprojects.
In January 2003, the Electronic Payments System, in line with the ones used in the
eurozone, started being implemented.
As concerns Romanias relations with the IMF, the year 2003 saw, for the first
time, the completion of one of the six stand-by arrangements implemented from
1991 onwards. Launched in October 2001, the said arrangement was extended until
October 2003.
At the request of the Romanian authorities, Romania was included in the
IMF/World Bank Financial Sector Assessment Program FSAP.
In 2003, rating agencies further upgraded Romanias ratings. Standard & Poors
improved twice (on 27 February and 17 September) the rating for long-term debt,
namely the rating for foreign currency debt was upgraded from B+ to BB- and
subsequently to BB, while that for domestic currency debt was raised from BB- to
BB and subsequently to BB+; the agency affirmed the positive outlook for
Romania. In December, Fitch IBCA upgraded the ratings for long-term debt, as
follows: the rating for foreign currency debt was elevated from BB- to BB, whilst
that for domestic currency debt was improved from BB to BB+. Likewise in
December, Moodys lifted Romanias ratings for long-term foreign and domestic
currency from B1 to Ba3. As for Japan Credit Rating Agency, in the final month of
2003, it announced a BB+ rating for domestic currency debt.

D. Banking system development


It may be asserted that 2003 saw the completion of the process of cleaning up and
restructuring of the banking system, which started in 1998, when banking
legislation was improved. The major steps addressed full harmonisation of the Law
on Banking Activity with the provisions of the acquis communautaire, completion
of negotiations to sell a 25 percent equity stake in Banca Comercial Romn to

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Overview of the main economic, financial, monetary and foreign exchange developments in 2003

the EBRD and the IFC, opening of winding-up proceedings against Banca
Columna, the last bank whose restructuring commenced in 1998.
In 2003, the volume of banking activity rose markedly, thereby making headway in
catching up with the EU member states in terms of financial intermediation,
without adversely affecting prudential indicators of the banking system.
The development of retail banking constituted the main feature of banking activity
in the reference year, as illustrated by its share in total non-government credit,
which rose from merely 11.7 percent in 2002 to 24.8 percent in 2003. The increase
was driven by a larger credit supply and looser lending terms amid stiffer
competition among banks, on the one hand, and higher demand propelled by the
repressed consumption in previous years and the improved perception of the
general public on their prospective incomes, on the other.
Rapid non-government credit expansion entailed a higher credit risk across the
banking sector, which translated into a relative increase in the overall risk ratio and
the credit risk ratio, as well as into a certain decrease of the solvency ratio, which
remained however within adequate limits, well above the internationallyacknowledged benchmark. The new features of the Romanian banking market
required the steady improvement of supervision, which focused on forecasting and
analysis of direct risks and, to a relatively lower extent, on the ex-post analysis of
compliance with the regulations in force. A quarterly review of the potential
weaknesses of the banking system added to the monthly scoring of the systems
stability.
As of 1 January 2003, the National Bank of Romania introduced new regulations
on loan classification and provisioning, in line with international practices. Against
this background, credit expansion did not cause the loan portfolio to worsen, as the
ratio of unadjusted exposure from loans and related interest classified under
doubtful and loss and total loans and related interest classified (off-balancesheet items included) fell steadily from 5.7 percent in January 2003 to 3.4 percent
in December 2003.
The considerable resilience of the banking sector to potential shocks is illustrated
not only by the developments in prudential indicators calculated by the central
bank but also by the outcome of the FSAP. Based on stress tests using the
methodology developed in the context of the FSAP, the banking sector was found
to be flexible to potential shocks emanating from market and credit risks. Exposure
to currency and interest rate risks was low, as banks balanced their net foreign
currency position and the lending rate was variable.

18

National Bank of Romania

Annuat
Report
2003
Overview of the main economic, financial, monetary and foreign exchange developments in 2003

Against the background of accelerating credit to non-government and the banks


heavy recourse to financial risk insurance, steps had to be taken to prevent the
insurance market from losing stability. For this reason, the NBR engaged in a
steady dialogue with the Insurance Supervisory Commission and proposed the
issuance of norms to impose on the companies in this line of business the
reinsurance on either domestic or foreign market of a significant percentage of the
portfolio of insurance policies related to credit risk.
The NBRs concern to enhance the efficiency of supervision materialised into new
agreements on the exchange of information with the competent authorities in the
countries of origin of the banks holding subsidiaries, branches or representative
offices in Romania. In 2003, the NBR signed such agreements with Bank of
Greece and the Federal Financial Supervisory Authority in Germany; other three
agreements, with De Nederlandsche Bank, Die Oesterreichische Nationalbank, and
Commission Bancaire in France, are subject to negotiations.
In 2003, domestic banking legislation was further harmonised with the EU
provisions. Thus, full harmonisation of the Law on Banking Activity with EU
Directives (by Law No. 485/2003 amending and supplementing Law No. 58/1998
The Banking Act) was accompanied by the adoption of a series of regulations with
a direct impact on the improvement of supervision (aiming particularly at
supervision of own funds on a consolidated basis and on an unconsolidated basis,
supervision of solvency and large exposure of credit institutions). In addition, the
scope of accounting regulations was extended so as to encompass all credit
institutions.
Starting 2003, the NBR has been authorising and regulating also savings banks for
housing (in May 2004, it issued the first such authorisation for Raiffeisen Bank
Bausparkasse Romania joint-stock company) and credit co-operatives (on the one
hand, the enlargement of Creditcoop Central House network was approved, while
the applications for authorisation along with the complaints made subsequently by
other co-operative networks were rejected and, on the other hand, norms were
issued respecting the merger and split-up of credit co-operatives, know your
customer standards, organisation and internal audit of credit institutions, as well
as significant risk management).

National Bank of Romania

19

Annual
Report
2003

Chapter 1. World economy


A. Overview
World economy advanced faster in 2003, as illustrated by the annual rates of
economic growth and international trade, i.e. 3.9 percent and 4.5 percent against 3
percent and 3.1 percent respectively in 2002. In the latter half of the reported year,
the annualised growth rate of world economy accelerated to 6 percent, due largely
to the performance of the US, Chinese and Japanese economies.
The US economic growth gained momentum, reaching 3.1 percent in 2003
compared with 2.2 percent a year earlier. Against the backdrop of lower
uncertainties surrounding the warfare in Iraq and the implementation of stimulative
fiscal and monetary policy measures, the US economy rose at a quicker pace in
2003 Q3 and Q4 (with annualised rates of 8.2 percent and 4.1 percent).
The same as in 2002, behind the US economic growth stood the economic policy
mix pursued by the authorities, namely the fresh tax cut (which caused the fiscal
deficit to reach a record 5.1 percent of GDP, up 1.4 percentage points on the year)
combined with the lowering of federal funds rate, from 1.25 percent to 1 percent.
Tax cuts and lower interest rates boosted private consumption, which rose 3.1
percent, accounting for the main driver of growth in the US. After staying in
negative territory for two years, investment perked up 3.8 percent in 2003 due to
higher profits, smaller pressure from corporate restructuring in the aftermath of the
2000 stock-market turmoil, as well as to better financial conditions. The increase in
defence spending was the prime mover behind the 4 percent rise in government
consumption. Even though exports reverted to a positive growth rate (2 percent,
after two consecutive years of declines), this increase lagged behind that of imports
(4 percent), which was conducive to a negative contribution of net exports to GDP
growth (0.4 percentage points) and a widening trade gap. Under the circumstances,
the current account deficit reached 4.9 percent of GDP (compared with 4.6 percent
in 2002), pushing the US dollar lower throughout 2003, with the effective nominal
exchange rate posting a 9.2 percent depreciation.
The expansion in economic activity notwithstanding, labour market conditions
showed no sign of improvement as the average unemployment rate moved up 0.2
percentage points year on year to 6 percent.

20

National Bank of Romania

Annual
Report
2003
Chapter 1. World economy

In Japan, the economy resumed growth after the 0.3 percent setback in 2002.
Despite the stronger yen, the 2.7 percent rise in the Japanese economy was
ascribable to exports, particularly to Asian countries, as well as to the advance in
private investment as a result of improved corporate profitability and the higher
turnover on worlds stock markets. The deflation that has plagued Japan over the
past few years decreased in strength, with the general price level dropping only 0.2
percent versus 0.9 percent in the year before.
Emerging economies in Asia saw an increase of 7.2 percent in 2003 against 6.2
percent in 2002, although most of them were affected by the severe acute
respiratory syndrome (SARS) in the first half of 2003. The Chinese economy was
the best performer, up 9 percent from 8 percent a year earlier, owing to the upsurge
in investment.

B. Eurozone
Unlike the first half of 2003, when eurozone was gripped by recession, the last two
quarters of the reference year experienced an economic upturn so that in 2003 as a
whole economic growth edged up 0.4 percent (0.5 percentage points below the
2002 reading). Underlying this growth rate were the divergent developments in the
region, with the highest GDP growth being registered by Greece (up 4.2 percent)
and the weakest performance being recorded by Portugal (down 1.3 percent).
Across the eurozone as a whole, the resumption of positive growth rate in 2003 Q3,
i.e. 0.4 percent quarter on quarter, occurred on the backdrop of the rise in exports,
bolstered by the larger external demand for European products in spite of the
1
strong appreciation of the euro. Even though private consumption failed to give an
impetus to economic growth in 2003 Q4, domestic demand became the main driver
of economy (making a 0.7 percentage point contribution to GDP growth), while the
robust rise in imports (partly due to companies stock replenishment) led to a
negative 0.3 percentage point contribution of net exports. After having fallen
January through September, in the final quarter of 2003, investment rebounded 0.6
percent quarter over quarter, due to improved financing conditions (the ECB cut its
refinancing rate twice in 2003 to an all-time low of 2 percent).
The slowdown in eurozone economies in 2003 left its mark on the labour market as
the jobless rate rose by 0.4 percentage points year on year to 8.8 percent.
Inflation rate in eurozone was yet again above the target established by the
European Central Bank, posting an annual average of 2.1 percent (compared with
2.3 percent in 2002) in spite of the slowdown in economic growth and the stronger
1

Accounting for 57 percent of GDP in 2002

National Bank of Romania

21

Annual
Report
2003
Chapter 1. World economy

euro. The main reasons behind the rise in prices in eurozone were seasonal factors
which pushed food prices and energy costs up by 2.1 percent and 3 percent
respectively, as well as the uplift in indirect taxes. The low productivity along with
the lack of external competition resulted in sticky prices across services, with
inflation rate in this sector staying at an annual level of 2.5 percent starting 2003
Q2 (on the wane from 3.1 percent in 2002). Although the inflation differential
2
among Member States in eurozone diminished year over year, it persisted in the
context of price growth rates ranging between 1 percent in Germany and 4 percent
in Ireland.
The weaker-than-expected economic performance made most of the EMU
members resort to tax incentives, which brought about a widening of the budget
deficit, from 2.3 percent of GDP to 2.7 percent. The highest deficits were seen in
Germany (3.9 percent of GDP) and France (4.1 percent of GDP), exceeding for the
second year in a row the 3 percent threshold set under the Stability and Growth
Pact.

C. Transition economies
The upward trend in private consumption and exports caused economic growth to
speed up in 2003 across transition economies in Central and East European
countries. Real GDP of these countries grew on average by 3.9 percent in the
reported year, up 0.9 percentage points from 2002. This owed much to the
performance of the Polish economy, the largest in the region, reporting a 3.7
percent growth in GDP, against 1.4 percent in 2002. The Baltic countries (Estonia,
Latvia and Lithuania) were still in the lead with GDP growth averaging out at 7.5
percent from 6.4 percent in 2002, ahead of Romania and Bulgaria whose growth
rates amounted to 4.9 percent and 4.3 percent respectively. As for Central
European countries, i.e. the Czech Republic, Hungary, Poland, Slovakia and
Slovenia, GDP rose on average by 3.4 percent compared with 2.2 percent a year
earlier.
The members of the Community of Independent States further enjoyed economic
expansion as the average pace of real GDP growth stood at 7.6 percent from 5.1
percent in 2002. The hike in the oil price on the international market, higher wages,
as well as larger consumption and investment spurred economic growth in the
Russian Federation, whose GDP picked up 7.3 percent versus 4.7 percent in 2002.
The above-mentioned factors also gave an impetus to the economies of the other
member countries, among which the following recorded notable GDP growth rates:
Ukraine (9.3 percent), Azerbaijan (11.2 percent) and Kazakhstan (9.5 percent).
2

22

Calculated as a spread between the maximum and minimum inflation rates in EMU members

National Bank of Romania

Annual
Report
2003
Chapter 1. World economy

In 2003, the value of exports of goods and services expanded in Central and East
European countries, with most of them posting higher growth rates. Central
European countries were the top performers, with an average growth rate of 11.3
percent compared with 4.4 percent in 2002, particularly owing to the sharp increase
in exports of Slovakia (22.6 percent against 5.5 percent in 2002) and Poland (13
percent against 4.8 percent in the year before). Behind the outstanding performance
of exports stood their improved composition as a result of foreign investment in
the preceding years, coupled with a weaker zoty in the case of Poland, rather than
the demand from the European Union (the main trade partner of those countries),
which was further sluggish throughout 2003. Exports were also on the rise in the
Baltic countries, with Latvia and Estonia exceeding the year-earlier figures (12.7
percent versus 6.3 percent and 6 percent versus 0.6 percent respectively). As for
export performance in Bulgaria and Romania, the former recorded an 8 percent
growth rate, from 7 percent in the year before, while the latter posted an 11.1
percent growth pace, from 17.6 percent in 2002.
Imports of goods and services remained on an uptrend, with the highest increases
being detected for Romania (16.3 percent), Bulgaria (14.8 percent), Latvia (14.3
percent) and Hungary (10.3 percent). Except for Poland and Slovakia, the growth
rate of imports outran that of exports, which caused the current account balance to
worsen.
The current account deficit as a share to GDP widened in the case of Bulgaria (8.6
percent of GDP from 4.7 percent in 2002), Romania (5.7 percent of GDP from 3.4
percent a year earlier) and Hungary (5.7 percent of GDP from 3.3 percent in the
year before) or remained very high, particularly in Estonia (13.7 percent of GDP)
and Latvia (9.1 percent of GDP). Under the circumstances, net exports generally
depressed economic growth of the ten Central and East European countries seeking
EU membership (-0.7 percentage points), but became the driving force behind the
improved economic performance of Slovakia (contributing 6.5 percentage points to
the 4.2 percent increase in GDP) and had a substantial impact on GDP growth in
Poland (1.7 percentage points).
Inflation stayed on a downward trend in most Central and East European countries,
averaging 4.1 percent from 5.9 percent in the year before. Slovakia and Latvia were
the only countries in the region to face higher inflationary pressures (from 3.3
percent to 8.5 percent year over year in the former country and from 1.9 percent to
2.9 percent in the latter country). The lowest inflation rates were reported in the
Czech Republic (0.1 percent), Poland (0.8 percent) and Estonia (1.3 percent), while
Lithuania saw a 1.2 percent drop in the general level of prices.
3

Data referring to exports/imports of goods and services are those disclosed in national accounts
(Source: CANSTAT Statistical Bulletin No. 4/2003).

National Bank of Romania

23

Annual
Report
2003
Chapter 1. World economy

Unemployment was still running high across transition economies of Central and
East European countries, as the stepped-up economic growth translated into a
marginal improvement in employment (except for Bulgaria, which saw a 2.8
percentage point drop in jobless rate). The highest unemployment rates were
recorded by Poland (18 percent), Slovakia (15.6 percent) and Bulgaria (13.5
percent).
Although most Central and East European countries consolidated their fiscal
positions in 2003, the average budget deficit increased to 4.8 percent of GDP from
4.3 percent in 2002. This was due to the following: the record deficit displayed by
the Czech Republic (12.9 percent of GDP versus 6.4 percent in 2002), tax cuts in
Poland (where the deficit reached 4.1 percent of GDP versus 3.6 percent in 2002),
and the still high fiscal deficit in Hungary, even though fiscal adjustment was
implemented in the reported year (5.9 percent of GDP compared with 9.3 percent
in 2002). As far as the other countries are concerned, the balance of government
accounts ranged between +2.6 percent of GDP (in Estonia) and -3.6 percent of
GDP (in Slovakia).

24

National Bank of Romania

Annual
Report
2003
Chapter 1. World economy

Macroeconomic Indicators of Selected Central and East European Countries, 1999 - 2003
Bulgaria

Czech

Estonia Hungary

Latvia

Lithuania Poland

Romania Slovakia Slovenia

Republic
Population (million)

GDP

Real GDP

Industrial
output
Labour force
Prices

10.3

1.3

9.9

2.3

3.5

38.6

21.7

5.4

2.0

0.5

0.6

4.2

2.8

1.7

4.1

1.2

1.5

5.6

(change from

2000

5.4

3.3

7.3

5.2

6.8

3.9

4.0

2.1

2.0

3.9

2001

4.1

3.1

6.5

3.8

7.9

6.4

1.0

5.7

3.8

2.7

2002

4.9

2.0

6.0

3.5

6.1

6.8

1.4

5.0

4.4

3.4

2003

4.3

2.9

4.7

2.9

7.5

9.0

3.7

4.9

4.2

2.3

Industrial

1999

7.9

3.1

3.4

10.4

8.8

11.2

3.6

2.4

2.0

0.5

output

2000

8.2

5.4

14.6

18.2

3.2

2.2

6.7

7.1

8.7

6.3

(change from

2001

1.6

6.5

8.9

3.6

6.9

16.0

0.6

8.4

7.6

3.1

a year earlier)

2002

6.5

4.8

8.2

2.8

5.8

3.1

1.1

6.0

6.7

2.5

2003

15.6

5.8

9.8

6.4

6.5

16.1

8.7

3.1

5.3

1.4

1999

16.0

9.4

5.2

6.3

9.1

10.0

13.0

11.8

19.2

13.0

Unemployment

2000

17.9

8.8

5.9

5.7

7.8

12.6

15.0

10.5

17.9

12.0

rate

2001

17.3

8.9

6.1

5.4

7.7

12.9

17.4

8.8

18.6

11.8

2002

16.3

9.8

5.4

5.9

8.5

10.9

18.1

8.4

17.4

11.3

2003

13.5

10.3

4.9

5.5

8.6

9.8

18.0

7.2

15.6

11.0

Inflation rate

1999

2.6

2.1

3.3

10.0

2.4

0.8

7.3

45.8

10.6

6.1

based on CPI

2000

10.3

3.9

4.0

9.8

2.6

1.0

10.1

45.7

12.0

8.9

(annual average) 2001

7.4

4.7

5.8

9.2

2.5

1.3

5.5

34.5

7.3

8.4

%
Industrial

2002

5.8

1.8

3.6

5.3

1.9

0.3

1.9

22.5

3.3

7.5

2003

2.4

0.1

1.3

4.7

2.9

1.2

0.8

15.3

8.5

5.6

1999

2.8

1.0

1.2

5.1

4.0

1.7

5.5

44.5

3.8

2.1

producer prices 2000

17.5

4.9

4.9

11.6

0.6

16.0

7.7

53.4

9.5

7.6

(average annual 2001

3.7

2.9

4.4

5.2

1.7

3.0

1.7

40.3

6.4

9.0

1.3

0.5

0.4

1.8

1.0

2.8

1.2

24.5

2.1

5.2

change)

2002

2003

4.9

0.3

0.2

2.4

3.2

0.5

2.7

19.6

8.3

2.6

1999

3,733.7

24,639.6

2,364.4

24,058.8

1,771.1

2,951.2

28,215.0

7,977.0

9,602.2

8,103.2

2000

5,253.1

31,482.7

3,600.9

31,277.5

2,233.4

4,395.0

39,022.0

11,273.0

12,875.7

9,574.2

2001

5,714.2

37,251.2

3,749.4

34,697.1

2,485.0

5,460.8

46,537.0

12,722.0

14,118.4

10,454.3

2002

6,062.9

40,711.2

3,712.9

36,820.7

2,733.6

6,363.0

49,338.0

14,675.0

15,273.3

11,081.2

Exports 1)
EUR mn.

Foreign trade

8.0
2.3

a year earlier)
%

Broad money

2003
1999

2003

6,662.6

43,079.1

4,052.7

38,161.0

2,803.9

6,760.2

53,836.0

15,614.0

19,350.3

11,426.5

1999

4,741.4

26,424.5

3,137.6

26,102.4

2,726.9

4,275.4

42,361.0

9,164.0

10,627.7

9,267.3

1)

2000

6,533.0

34,875.7

4,441.1

34,457.1

3,385.5

5,603.3

52,349.0

13,140.0

13,856.2

10,801.2

EUR mn.

2001

7,492.6

40,674.8

4,630.1

37,192.8

4,001.0

6,696.9

55,094.0

16,045.0

16,491.2

11,138.7

Imports

M2

2002

7,754.7

43,026.0

4,877.9

39,024.1

4,262.8

7,770.2

57,039.0

17,427.0

17,521.1

11,346.6

2003

8,858.8

45,258.2

5,441.3

41,132.0

4,568.0

8,181.0

58,913.0

19,569.0

19,918.7

11,970.8

1999

13.4*

7.7

23.5

13.1*

8.0

7.7

20.1*

45.0

13.0

12.2*

(change from

2000

30.8*

5.6

25.1

18.0*

27.9

16.5

11.9*

38.0

15.4

15.3*

a year earlier)

2001

25.8*

13.0

23.7

17.1*

20.8

21.4

9.2*

46.2

11.8

28.3*

2002

11.7*

3.5

11.1

9.5*

21.0

16.9

2.0*

38.2

3.4

18.4*

* - M3

2003

19.6*

6.9

10.9

11.9*

21.1

18.2

5.6*

23.3

5.6

4.9*

National Bank of Romania

25

Annual
Report
2003
Chapter 1. World economy
- continued -

Bulgaria

Czech

Estonia Hungary

Latvia

Lithuania Poland

Romania Slovakia Slovenia

Budget

Republic
Share of
consolidated
government
budget
deficit (-)/
surplus (+)

Balance of payments
External debt
Reserves

0.4

3.4

4.0

5.6

5.3

5.6

1.4

4.5

6.4

2.1

2000

0.5

4.5

0.3

3.0

2.7

2.6

1.8

4.4

12.3

3.0

2001

0.2

6.4

0.3

4.4

1.6

2.1

3.5

3.5

6.0

2.7

2002

0.8

6.4

1.8

9.3

2.7

1.6

3.6

2.0

5.7

1.9

in GDP , %

2003

0.1

12.9

2.6

5.9

1.8

1.7

4.1

2.0

3.6

1.8

Trade balance

1999

1,007.7

1,784.9

773.2

2,043.6

955.8

1,324.2 14,146.0

1,187.0

1,025.5

1,164.1

EUR mn.

2000

1,279.9

3,393.0

840.2

3,179.6

1,152.1

1,208.3 13,327.0

1,867.0

980.6

1,227.0

2001

1,778.4

3,423.6

880.7

2,495.7

1,516.1

1,236.1

8,557.0

3,323.0

2,372.9

684.4

2002

1,691.8

2,314.8 1,165.0

2,203.4

1,529.2

1,407.2

7,701.0

2,752.0

2,247.8

265.4

2003

2,196.2

2,179.1 1,388.6

2,971.1

1,764.0

1,420.8

5,077.0

3,955.0

568.4

544.3

2)

Current account 1999

586.9

1,371.9

230.6

3,531.4

1,044.0

1,126.2 11,719.0

1,355.0

919.6

664.2

balance

2000

761.4

2,945.2

326.3

4,380.0

882.7

737.7 10,796.0

1,494.0

760.8

583.0

EUR mn.

2001

1,101.6

3,652.2

375.5

3,612.5

1,307.4

638.7

5,994.0

2,488.0

1,949.9

38.0

2002

924.2

4,426.1

845.4

4,900.0

1,114.0

772.1

5,404.0

1,623.0

2,043.3

329.7

4,937.1 1,014.8

2003

1,498.3

6,488.4

1,482.0

1,063.3

3,660.0

2,877.0

245.7

16.7

Net foreign

1999

758.6

5,848.5

205.1

2,871.7

528.1

448.2

6,795.0

964.0

751.7

54.5

direct

2000

1,099.7

5,357.1

358.0

2,334.0

716.5

408.5

10,316.0

1,161.0

1,856.6

77.4

investment

2001

892.6

6,111.5

377.1

3,992.2

270.3

490.9

6,469.0

1,312.0

1,545.4

251.2

EUR mn.

2002

951.1

8,793.0

167.3

2,733.5

644.1

754.0

4,143.0

1,194.0

4,663.5

1,608.2

618.9

2003

1,234.8

2,083.7

774.6

507.9

126.2

3,413.0

1,591.0

647.1

109.0

Gross external

1999

10,846.6

22,765.1

2,863.6 29,393.3

3,803.1

4,499.2

65,043.0

8,756.5

10,469.6

8,012.0

debt

2000

11,882.7

23,285.1

3,232.5 32,867.8

5,052.9

5,220.5

74,672.0

11,113.4

11,611.1

9,490.0

EUR mn.

2001

11,934.9

25,367.7

3,707.3 37,933.9

6,320.0

5,974.1

81,380.0

13,507.1

12,786.4

10,403.0

2002

10,768.6

25,737.5

4,490.3 39,020.8

6,641.4

5,944.9

80,920.0

14,648.3

12,576.3

11,482.0

2003

10,330.1

27,598.6

5,553.1 45,679.5

7,237.7

6,904.6

82,317.0

15,379.0

14,507.6

12,995.0

Official foreign

1999

2,878.7

12,747.1

849.8

10,845.3

836.3

1,189.9

26,224.1

1,520.0

3,354.4

3,159.2

exchange

2000

3,390.6

13,991.5

989.6

12,038.4

914.5

1,409.1

28,554.6

2,654.9

4,349.0

3,435.8

reserves

2001

3,734.0

16,272.7

927.5

12,163.7

1,303.5

1,836.7

29,031.4

4,445.2

4,696.2

4,907.5

EUR mn.

2002

4,247.1

22,461.7

955.0

9,887.4

1,183.8

2,252.7

27,366.9

5,876.9

8,298.9

6,701.5

2003

4,981.0

21,195.6

1,095.5

10,108.4

1,134.5

2,697.3

25,846.9

6,373.6

9,230.1

6,798.0

Local currency/ 1999

1.956

36.88

15.647

252.80

0.626

4.264

4.227 16,295.57

44.12

193.63

2000

1.956

35.60

15.647

260.04

0.559

3.695

4.011 19,955.75

42.60

205.03

(annual average) 2001

1.956

34.07

15.647

256.68

0.560

3.582

3.669 26,026.89

43.30

217.19

2002

1.956

30.80

15.647

242.97

0.581

3.459

3.856 31,255.25

42.69

226.22
233.70

EUR

Exchange rate

1999

2003

1.956

31.84

15.647

253.51

0.645

3.453

4.398 37,555.87

41.50

Local currency/ 1999

1.956

36.10

15.647

254.92

0.588

4.017

4.169 18,330.76

42.40

197.32

3.723

3.854 24,117.66

43.93

211.51

EUR

2000

1.956

35.05

15.647

264.94

0.576

(end of period)

2001

1.956

31.96

15.647

246.33

0.556

3.523

3.522 27,881.19

42.78

221.41

2002

1.956

31.58

15.647

235.90

0.614

3.453

4.020 34,918.73

41.50

230.27

32.41

15.647

262.23

0.674

3.453

4.717 41,117.00

41.16

236.69

EEK

HUF

LVL

LTL

PLN

SKK

2003
Local currency

1.956
BGN

CZK

ROL

SIT

1) exports/imports of goods, according to balance of payments data;


2) according to ESA95.
Source: Monthly Bulletins and Annual Reports of central banks in the countries listed above, as well as EBRD, IMF and BIS publications.
For Romania data are updated consistent with the latest information supplied by the National Institute of Statistics and the NBR.

26

National Bank of Romania

Annual
Report
2003

Chapter 2. National economy


A. GDP by origin and expenditure
In 2003, the Romanian economy stayed on an expansion path for the fourth year in
succession, as mirrored by the 4.9 percent rise in real gross domestic product, a
level similar to that recorded a year earlier. Nominal GDP stood at ROL
1,890,778.3 billion, causing GDP per capita to move ahead 4.3 percent year on year
to EUR 2,3161. The contribution of private sector to GDP increased to 69.1 percent.

Contribution of the Main Supply Components to GDP Growth


4

percentage points

3
2
1
0
1

industry
construction
agriculture, forestry and fishery
services

2
3
4
2002

2003

Gross value added stood 4.9 percent higher year on year, contributing 4.4
percentage points to GDP growth. The contribution to GDP growth of net taxes on
goods2 dropped 0.2 percentage points versus 2002, although their share in GDP
was little changed at 10.5 percent.
In industry, gross value added climbed 4.6 percent compared with 2002 amid the
above-average increase in output in manufacturing (3.7 percent) and in the
electricity, heating, gas and water sub-sector (1.6 percent), while mining output
inched down (0.4 percent).

1
2

Based on data on Romanias estimated population as at 1 July 2003


Collection of VAT, excise duties and other taxes, net of subsidies

National Bank of Romania

27

Annual
Report
2003
Chapter 2. National economy

Following the prolonged drought that hit the hydroelectric power system in 2003,
the increased resort to electricity provided by coal-fired power plants was reflected
by the 4.5 percent pick-up in the output of coal mining and preparation sub-sector.
Hydrocarbon production stayed on a multi-annual declining trend (down 6.4
percent year on year) due to the following causes: oil fields have passed their
maturation stage and natural gas reserves shrank after the implementation of
policies aimed at doing away with dependence on imports in the early 80s.
The real increase in manufacturing output surpassed by 0.6 percentage points the
average figure reported by industry as a whole. The most sizeable rises, in a range
from 15.9 percent to 40.2 percent, were recorded in the following sub-sectors:
textiles, rubber and plastic products, medical, precision and optical instruments and
apparatus, watches and clocks, transport means, radio, television and
communication equipment and apparatus, publishing and printing. Nevertheless,
the activities mentioned above could not boost manufacturing output significantly,
given their fairly small share3 in the sectors production. By contrast, output in
metallurgy and oil processing, nuclear fuel treatment and coal coking contracted
year on year by 19.1 percent and 9.7 percent respectively. Due to the large share of
the two sub-sectors in the sectors production, i.e. 38 percent, total manufacturing
output took a severe blow. Behind the decline in the output of those sub-sectors
stood largely the lower export demand, inter-company arrears, and the far-reaching
overhaul of some units.
All four main manufacturing groups posted output increases. Thus, output of
capital goods edged up 3.4 percent, that of intermediate goods advanced 3.6
percent, output of non-durables stood 4.6 percent higher, and that of durables shot
up 11.7 percent. The expansion in the latter industry was driven by both the still
sharp household bias towards durables purchases and larger foreign orders.
The rise in the output of electricity, heating, natural gas and water can be attributed
to the considerable expansion in activity of coal-fired power plants (14.7 percent4),
including by demothballing of some units, in order to offset the abrupt cut in
electricity output of hydroelectric power plants and of the nuclear power plant.

Services were further the largest contributor to GDP formation (44.6 percent).
Gross value added in this sector augmented 5.2 percent year on year, on the back of
larger sales, higher turnover of market services delivered to households, as well as
improved performance of telecommunications, real-estate transactions, transport
and warehousing.
3

In 2003, the cumulative share of those sub-sectors in total manufacturing output reached a meagre
11 percent.
4
Based on output measured in physical units

28

National Bank of Romania

Annual
Report
2003
Chapter 2. National economy

Gross value added in agriculture, forestry and fishery stood 3 percent higher than
in the previous year, sending the contribution of this sector to GDP growth back to
positive territory (0.3 percentage points).
Bad weather conditions, i.e. extremely cold winter, large temperature variations in
spring, and prolonged drought, caused the grain output to decline in a range from 8
percent to 66.5 percent. Therefore, the authorities took steps to impose restrictions
on wheat exports and foster imports in an attempt at ensuring fodder and a smooth
operation of bakeries. The weak performance of this sub-sector was offset by the
substantial increase in the output of sunflower, maize, soybean, vegetables and
fruit.
The same as in 2002, the stockbreeding sector had a positive contribution to the
development of agriculture amid the rise in livestock numbers and in the supply of
products of animal origin, mostly as a result of government assistance granted to
farmers. Thus, domestic consumption requirements were more adequately met and
domestic products of animal origin strengthened their export market share.

Construction was the best performing sector in terms of gross value added, up by
a real 7 percent. The majority privately owned sector increased its share in total
construction works to 90.6 percent. Over the reference year, the construction
activity diversified. Apart from the expanding urban and residential infrastructure,
advances were seen in industrial works (refurbishment and new plants), railway
and road infrastructure, works in the energy sub-sector (refurbishment of coal-fired
power plants, completion of some hydroelectric power plants), works in the trade
sector (large facilities), as well as in the social and cultural field (refurbishment of
some schools, building of sports facilities).
GDP by expenditure illustrates that GDP growth in 2003 was solely driven by
domestic demand, with both its components, i.e. final consumption and gross
capital formation, posting positive contributions. The contribution of domestic
demand to GDP growth equalled 7.7 percentage points, being eroded by weaker
foreign trade figures as the nearly 48 percent pick-up in net imports of goods and
services had a notable negative contribution (-2.8 percentage points compared with
+0.9 percentage points in 2002).
Final consumption grew by a real 6.9 percent, accounting for 83.3 percent of
GDP. The fast-paced rise in final consumption was propelled by the expansion of
private consumption (whose rate of increase more than doubled year on year) and
the rebound in government consumption.

National Bank of Romania

29

Annual
Report
2003
Chapter 2. National economy

Contribution of the Main Demand Components to GDP Growth


6

percentage points

4
2
0
2

final consumption of households


gross fixed capital formation
net exports of goods and services

4
2002

2003

Household actual final consumption, up 7.1 percent on the year, was the main
driver of the increase in the contribution of final consumption to GDP growth, up
to 5.7 percentage points, amid considerably larger incomes and readily-available
loans. The real 4.6 percent rise in government actual final consumption was mostly
ascribed to the sizeable funds intended, in the latter half of 2003, for compensation
payments to former public-sector employees, grants-in-aid to farmers, allowances
for heating to low-income families, subsidisation of heating prices, the amounts
destined to bridge the healthcare system deficit, and to the outlays for organising
the national referendum on the Constitution.
Against the backdrop of continued economic growth and the increasingly available
domestic and foreign financing resources, gross fixed capital formation remained
the fastest-growing component of domestic demand in 2003 as well (up 9.2 percent
in real terms).
The step-up in accumulation was underscored not only by the development of gross
fixed capital formation but also by that of investment in national economy,
mirroring the rise in both purchases of equipment, including transport means (12.6
percent against a year earlier) and new construction works (5.8 percent).
The upsurge in investment was mainly accounted for by the private sector (11.2
percent over the year before); in addition, in 2003, public sector investment
resumed the upward path. In either case, capital expenditures were channelled
particularly to equipment and transport means purchase.

30

National Bank of Romania

Annual
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2003
Chapter 2. National economy

The change in inventories had a zero contribution to GDP growth in 2003.


Considering the poor grain harvests, the rise of this indicator was driven by the
producers stocks of finished goods, whose share in total resources5 widened from
4.6 percent in 2002 to 4.9 percent in 2003. This owed much to sizeable inventory
building in metallurgy and oil processing, coal coking and nuclear fuel treatment,
which was offset to a great extent by the faster decline of inventories in mining
(chiefly as a result of the impact of bad weather conditions on this industry) and in
most manufacturing sub-sectors (chiefly chemicals, transport means and building
materials, due to stronger domestic and/or external demand).
In 2003, Romanias external balance worsened, as the share of net imports in GDP
added 2.2 percentage points year over year to 7.9 percent. On the background of
the pick-up in domestic demand, boosted by private consumption and investment,
imports of goods and services gathered momentum (up 16.3 percent); however,
exports (up 11.1 percent) failed to match the performance of imports, due widely to
the flat performance of economies of EU member states and to stiffer competition
from countries in Central and Eastern Europe (Czech Republic, Poland, Hungary,
Ukraine) and Asia (China, India).

B. Prices, incomes and employment


GDP deflator slid 4.2 percentage points year on year to 119.2 percent. Prices
relating to gross value added in agriculture and construction increased more
sharply than those in industry and services (25.4 percent in agriculture and 20.3
percent in construction, as compared to 19.7 percent in industry and 17.4 percent in
the tertiary sector) amid the insufficient domestic production or stronger demand
spurred by readily-available loans.
In 2003, behind the rise in prices stood the joint action of domestic and external
factors such as loose income policy, short grain crops, long-coming restructuring of
the energy sector, costlier commodity imports6, the altered excise duty regime, the
change of the adjustment parameter for some administered prices (medicines, fixed
telephony), the weaker ROL versus the EUR.

output + beginning stocks


In 2003, the price of Brent crude oil rose on average by 15.4 percent, whereas that of natural gas
imported from the Russian Federation by 30.7 percent. According to the Ministry of Agriculture,
Forests and Rural Development, in January 2004, the price of imported wheat was nearly 125 percent
higher than in the same year-earlier period.

National Bank of Romania

31

Annual
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2003
Chapter 2. National economy

Consumer Prices in 2003


4

percent

percent

20

15
percentage change compared to the same year-earlier
period (right-side scale)

10

monthly change

0
J

Nevertheless, disinflation continued in 2003 thanks to prudent monetary and fiscal


policy stance, lower import prices of some goods in high demand domestically
(durables in particular), keener competition among retailers, and lowering
corporate uncertainties surrounding the business environment. Moreover, the real
appreciation of the ROL against the USD helped cushion the rate of increase in
prices by mitigating the inflationary impact of unfavourable developments on
worlds major commodity markets. As a result, inflation rate was cut to 14.1
percent (falling marginally short of the 14 percent target, December/December),
down 3.7 percentage points against the year before.
Disinflation was sharper in terms of services and non-food items, even though their
prices rose by 15 percent and 14.3 percent respectively, above the general level of
consumer prices, mainly on the back of goods and services with administered
prices. Food prices went up 13.7 percent in 2003, with the highest price increases
being detected for milling and bakery products (34.5 percent), which contributed
3.7 percentage points to the 12-month inflation rate. Due to poor grain harvests for
the second straight year, massive additional imports were required, amid surging
grain prices. Throughout the year, the authorities steps (resort to the governments
wheat reserves, exemption of grain imports from customs duties) helped bring
down costs and ensure the smooth supplying of inputs to bakeries, thereby
cushioning the uptrend in prices. A positive impact on the general level of
consumer prices had seasonal products, which posted relatively moderate price
rises (5.3 percent for vegetables, fruit, and tinned vegetables and fruit), well below
those recorded a year earlier, mostly as a result of higher yields.

32

National Bank of Romania

Annual
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2003
Chapter 2. National economy

In 2003, the general price level also increased because of the hike in prices of
products liable to excise duties. Thus, prices of fuel, tobacco, coffee, and alcoholic
beverages grew in a range from 7.5 percent to 26.6 percent, owing to higher excise
duties starting January and July, on the one hand, and to the depreciation of the
domestic currency against the euro, on the other.
The share of products with administered prices in the CPI basket was raised to 21.7
percent in 2003 from 19.5 percent in 2002, administered prices contributing 26.9
percent to the rise in consumer prices (compared with 25.8 percent in 2002). In
2003, the rate of increase in administered prices equalled 17.4 percent, with prices
geared to inflation rising 22.7 percent and those geared to both inflation and
exchange rate (via specific methodologies) up 49.1 percent, well above adjustment
variables because of the strong impact of one-off factors. It notes the 48.9 percent
increase in the price of natural gas following the larger contribution of gas imports
to meeting domestic requirements, steeper import prices, and the move to gradually
adjust domestic gas producers price with a view to reaching import parity by 2007.
The goods and services whose prices are geared to exchange rate were 11 percent
costlier from December 2002, due largely to the adjustment of prices for electricity
and primary telephony services. The electricity price rose 18.2 percent in 2003
because of the larger volume of electricity produced by coal-fired power plants in
order to compensate for the lower volume of electricity produced by hydroelectric
power plants, particularly in summer7, as well as higher costs of raw materials and
rail transport.

Producer prices for the domestic market climbed 20 percent in 2003


(December/December), only 0.1 of a percentage point lower than a year earlier,
fuelled chiefly by manufacturing prices, which went up 21.3 percent compared
with 18.4 percent in 2002. The energy sector8 saw a slowdown in the rate of
increase in producer prices (17.3 percent in 2003 from 32.2 percent in 2002) amid
moderate growth in 2003 H1 (2.7 percent against 18.3 percent in 2002 H1). The
small adjustment of producer prices in this sector in 2003 H1 failed to ensure cost
recovery, which required, once the effects of drought started feeding through,
correction of electricity and heating prices.
Producer prices across manufacturing grew at a faster pace year on year, basically
as a result of price movements in food industry (26.5 percent over 15.3 percent in
2002) and metallurgy (19.2 percent over 14.6 percent in 2002) against the backdrop
of dearer raw materials and utilities. Behind the price increases recorded in the
latter sector stood also the notable volume of investment over the past few years for
7

According to the Romanian Electricity and Heating Regulatory Authority, in 2003, Termoelectrica
raised the production of energy by 31 percent compared with the planned figure.
8
Electricity and heating, natural gas and water

National Bank of Romania

33

Annual
Report
2003
Chapter 2. National economy

the purpose of retooling, as well as for the reduction in energy consumption and
environmental pollution. The developments in metallurgy combined with the
movements in world prices of steel and products thereof9 hurt producers of road
transport means and household appliances, sending the prices of such products up
by 25.5 percent and 20.8 percent respectively. Producer prices of wearing apparel
surged 26.4 percent year on year, fuelled by pay rises and higher costs following
the increase in the share of domestic collections to the detriment of outward
processing trade.
The increase in prices in the mining sector (14.2 percent) was stuck at previous
years level as the effect of the decelerating rate in prices in the coal mining and
preparation sub-sector (by 2.4 percentage points from 2002) was annihilated by the
swifter rise in prices in the hydrocarbon extraction sub-sector (14.9 percent
compared with 12.3 percent in 2002).
As with household incomes, the authorities were seeking to develop and
implement a new labour legislation system, hedge earnings against inflation,
reduce poverty, and strengthen pension and social assistance reform. As of 1
January 2003, the monthly minimum guaranteed income was subject to a 17
percent indexation10, the economy-wide gross minimum wage was raised from
ROL 1,750,000 to ROL 2,500,000 per month11, public pension realignment
continued along with the 12.5 percent indexation for the year as a whole performed
on a quarterly basis12. Above-inflation rises were also applied to social benefits;
thus, in nominal terms, unemployment benefits were lifted by 29.7 percent,
resettlement allowances by 41.9 percent, and child benefits by 16.7 percent13.
Furthermore, public-sector wages were raised at an annual real rate of 12.8
percent14 caused by the increase in the economy-wide gross minimum wage, lower
wage tax, indexations (by 6 percent in January and 9 percent in October), as well as
end-of-year bonuses (in January 2003 for the year 2002) and other bonuses. The
wage costs of the 73 state-owned companies subject to monitoring were more
tightly reined in, with the looser wage policy in some sectors (due to union
pressure) being offset by staff cuts and hiring freeze.

In 2003, world steel price went up 5.4 percent, whereas sheet-steel prices shot up 15.4 percent
(December/December).
10
Government Decision No. 1037 of 2002
11
Government Decision No. 1105 of 2002
12
Government Decisions Nos. 218, 614, 1006, and 1383 of 2003
13
Government Decision No. 1360 of 2002
14
Arithmetical mean of net wage in public administration, education and healthcare weighted by the
number of employees in those sub-sectors

34

National Bank of Romania

Annual
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2003
Chapter 2. National economy

Labour Productivity and Real Gross Average Wage in


Manufacturing in 2003
percent; against the same year-earlier period
20
16
12
8

labour productivity
real gross average wage (EUR)

4
0
-4
-8
J

In 2003, economy-wide net average wage increased by 25.4 percent in nominal


terms and by 8.8 percent in real terms (annual average). Behind the rise in real
wage stood the continued disinflation and economic growth, on the one hand, and
the implementation of wage and fiscal policy measures, on the other. These
measures encompassed the rise in the economy-wide gross minimum wage, the cut
in social security contribution by 2.2 percentage points to 9.5 percent, the cut in the
contribution for healthcare by 0.5 percentage points to 6.5 percent15, and the
implementation of a new tax scale alongside the raise by ROL 200,000 in the basic
tax deduction16. Nevertheless, most of the tradables sub-sectors witnessed moderate
hikes in the real gross wage (4.7 percent across manufacturing), well below
productivity growth (11.6 percent), as the concern to maintain competitiveness
prevented the increase in gross minimum wage from passing on to higher wages. In
some industrial sub-sectors17 wage growth was not in line with productivity
growth, yet the shares of each sub-sector in the value of industrial production
ranged from 0.2 percent to 1.6 percent (bar wearing apparel, whose share was 6.2
percent, but the rise in unit labour cost was merely one percent).

15

Government Emergency Ordinance No. 147 of 2002 on regulating some financial matters and
amending other pieces of legislation
16
Order No. 1754 of 2002 issued by the Minister of Public Finance on setting the monthly tax base
relative to income from wages and pensions
17
Wearing apparel, leatherwear and footwear, publishing, printing and reproduction of recorded
media, metallic construction, radio, television and communication equipment and apparatus

National Bank of Romania

35

Annual
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2003
Chapter 2. National economy

Incomes of pensioners moved ahead as a result of the continued implementation of


the half-yearly realignment together with quarterly indexation. Although the
average social security pension stood 1.5 percent higher year on year in real terms,
its share in the economy-wide net average wage dropped to 32 percent.
In the reported year, unemployment benefits the main social security benefit
granted to the unemployed picked up on average by a real 12.6 percent amid the
changes to the economy-wide gross minimum wage, which constitutes the
calculation base.

Number of Employees and Unemployment Rate in 2003

4,500

thousand

percent
number of employees in economy

10

unemployment rate (right-side scale)


4,400

4,300

4,200

4,100

6
J

In 2003, several factors weighed on the labour market, of which the following
deserve mention: (i) legislative changes, particularly the new Labour Code which
took effect on 1 March 2003; (ii) labour shakeout in the wake of either
implementing overhaul and reorganisation programmes in state-run sectors (energy,
education, mining, transport and warehousing) or cutting production costs
(metallurgy, machinery and equipment, road transport means); (iii) higher labour
demand in industries or services reporting larger sales (wearing apparel, furniture
and woodworking, rubber and plastic products, construction, trade, financial and
banking activities, real-estate transactions), paving the way for absorption of staff
made redundant.
One of the factors boosting employment and lowering unemployment was the
package of measures taken by the authorities to assist employers in hiring job

36

National Bank of Romania

Annual
Report
2003
Chapter 2. National economy

seekers or creating jobs18. Such measures envisage subsidisation of staff costs


attached to hiring job seekers or college graduates, extending soft loans for creating
jobs destined, in a proportion of 50 percent at least, to hiring the unemployed in
industry, services, or the tourist sector. In this context, the average number of wage
earners reported by employers grew by almost 11.5 thousand year on year, reaching
4,384.3 thousand (annual average). External migration further affected workforce,
pushing the jobless rate lower. Data released by the Office for Labour Force
Migration indicate that in 2003 the number of people who left the country to work
abroad doubled year on year to some 40 thousand.
Unemployment rate lowered year on year by 1.2 percentage points to 7.2 percent in
December 2003, with the number of people out of work standing at 658.9
thousand.
The average number of pensioners fell to 6,306 thousand, down 1.1 percent from
2002, as mirrored by the steady downward drift on a quarter-to-quarter basis. The
dependency ratio (number of pensioners and unemployment claimant count per
1,000 taxpaying employees) slid from 1,569 persons in 2002 to 1,508 persons in
2003.

C. Balance of payments and international investment position


The year 2003 saw the current account deficit widening by 77.3 percent against
2002 to as much as EUR 2,877 million. The current account deficit equalled 5.7
percent of GDP, up 2.3 percentage points over the year before. Weighing heavily on
the current account was the trade gap, whose share in GDP rose from 5.7 percent in
2002 to 7.9 percent in 2003.
Even though exports were further headed upwards (6.4 percent year on year), their
performance weakened from a year earlier (when they had risen by 15.4 percent)
due to the action of both external factors (the recession gripping the EU, stiffer
competition on the worlds markets coming mainly from EU candidates and Asian
countries) and domestic factors (the uplift of the tax rate related to profit from
exportation from 6 percent to 12.5 percent19, the increase in unit labour cost in
some industries with a significant share in total exports20).

18

Law No. 76 of 2002 on the unemployment insurance system and boosting employment, as amended
and added by Government Emergency Ordinance No. 124 of 2002
19
Still below the flat rate of 25 percent
20
Up one percent in wearing apparel and 6 percent in leather products and footwear (based on EURdenominated average wage)

National Bank of Romania

37

Annual
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2003
Chapter 2. National economy

Table 1. Current Account


EUR millions

2002
-2,752

2003
-3,955

14,675

15,614

- imports (fob)
b) Services - net
c) Incomes - net
d) Current transfers - net

17,427
5
-488
1,612

19,569
62
-623
1,639

Balance of current account

-1,623

-2,877

a) Trade balance (goods)


- exports (fob)

Behind the worsening of the external balance stood also the growth of imports at a
pace faster than that of exports (12.3 percent compared with 2002), led by bigger
import volumes. This development can be ascribed to the following factors:
(i)

further upgrading and retooling of the economy that boosted import


demand for capital goods; as a result, such imports climbed 16.5 percent
versus 2002, making capital goods the fastest-growing group by output
stage. This was also due to the granting of government guarantees and
exemptions from import duties for some capital goods.

(ii)

sharper household propensity for durables purchases, which led to higher


imports of consumer goods (13.2 percent year on year), particularly
electronics, domestic appliances and motorcars;

(iii)

poor grain harvests in 2002 and 2003, which called for larger imports of
such goods. Thus, imports of agrifoodstuffs expanded by 23.2 percent
(imported vegetal products doubled against 2002);

(iv)

surging contribution of imports to meet domestic consumption of natural


gas and lowering hydroelectric and nuclear electricity production, causing
the energy bill to worsen in 2003, with net imports of energy goods rising
by 42.3 percent. Imports of natural gas soared by 61.5 percent whereas
electricity exports dropped more than 30 percent along with the doubling
of imports. The upturn in imports of energy products was partly offset by
the 14.8 percent decrease in crude oil imports, as a result of retrenchment
in foreign demand for petroleum products.

The current account shortfall was aggravated by the 27.7 percent increase in the
incomes deficit (to EUR 623 million) because of lower compensation of employees
and higher interest payments on foreign debt.
The current account deficit widening was mitigated by the positive performance of
services and current transfers balances, the surpluses of which moved up EUR 57
million and EUR 27 million respectively.

38

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Chapter 2. National economy

Current Account Deficit and Direct Investment


2,000

EUR millions

direct investment
current account deficit

1,000
0
-1,000
-2,000
-3,000
1999

2000

2001

2002

2003

Net direct investment by non-residents in Romania amounted to EUR 1,627


million, up 34.2 percent year on year, with equity holdings and loans granted by
foreign companies to the Romanian enterprises they invested in accounting for
more than 70 percent of total investment. Foreign direct investment flowed
particularly into industry, professional services, wholesale trade, transport, retail
trade, construction, tourism and agriculture. Data provided by the Trade Register
show that at end-2003 the main investor countries (in terms of invested capital)
were France, Germany, Italy, the Netherlands and the USA.
Net portfolio investment by non-residents in Romania ran at EUR 515 million,
up 26.8 percent year on year, due to the nearly 50 percent decline in Eurobond
redemptions. The largest net flows under this heading were provided by the public
issue21 to the tune of EUR 700 million for budget deficit financing and by the
redemption of Eurobonds and promissory notes in amount of EUR 150 million and
EUR 80.7 million respectively.
Direct and portfolio investment by non-residents in Romania covered roughly 75
percent of the current account deficit.

21

Brokered by Deutsche Bank, Citigroup, JP Morgan and UBS

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2003
Chapter 2. National economy

Table 2. Current Account Deficit Financing

Deficit financing
Capital transfers, net
Direct investment, net
Portfolio investment, net
Other capital investment:
- borrowings (MLT)
- inflows
- repayments
- loans (MLT), net
- loans (ST), net
- other*
NBR's reserve assets
("": increase)

2002
1,623
95
1,194
406
1,823
1,641
4,054
2,413
21

EUR millions
2003
2,877
188
1,591
523
1,595
1,034
3,211
2,177
-52

349

381

-188
-1,895

232
-1,020

*) includes the following items, net: cash and cheques, deposits, in transit accounts, clearing and barter
accounts, errors and omissions.

Net inflows from medium- and long-term loans and borrowings came in at EUR
1,034 million, down 37 percent over a year earlier, due mainly to the drop in loans
taken by non-banks and to losses from EUR/USD exchange rate movements. Net
inflows from short-term loans and borrowings totalled EUR 381 million, up 9.2
percent year on year.
At end-2003, official foreign exchange reserves managed by the National Bank
of Romania added EUR 0.5 billion year on year to EUR 6.4 billion, as a result of
the central banks purchases from the forex market and inflows from foreign
borrowings and foreign exchange-denominated government securities launched by
the Ministry of Public Finance. The central banks net purchases from the interbank
forex market amounted to EUR 558 million22, while proceeds from issues of
foreign exchange-denominated bonds on the international capital market and the
domestic market ran at EUR 690.5 million and EUR 365 million respectively.
Inflows from foreign borrowings extended by the IMF and the EU equalled EUR
254.2 million. In 2003, the official foreign exchange reserves diminished by the
value of payments on external debt service (EUR 1,041.6 million) and that of
forex-denominated government securities redeemed by the Ministry of Public
Finance (EUR 403.8 million).

Medium- and long-term external debt went up 4.8 percent from end-2002 to
EUR 15.4 billion as a result of EUR 2.1 billion worth of net inflows from foreign
borrowings. By contrast, the gains from EUR/USD exchange rate movements
22

40

in respect of settlement date

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2003
Chapter 2. National economy

(EUR 1.2 billion) and some debt-to-equity swaps (EUR 0.2 billion) contained the
increase in external debt. Medium- and long-term external debt service stood at
EUR 3.2 billion, of which principal repayments in amount of EUR 2.5 billion and
interest and commission payments to the tune of EUR 0.7 billion.

External Indebtedness Indicators


40

percent

percent 100
MLT external debt service / exports of goods and services
MLT external debt / exports of goods and services (right-side scale)

30

95

20

90

10

85

80
1999

2000

2001

2002

2003

Composition of medium- and long-term external debt by debtor shows the


prevalence of public debt (42 percent), followed by private debt (37.2 percent) and
publicly guaranteed debt (20.8 percent). In year-on-year comparison, public debt
rose by 0.9 percentage points, while publicly guaranteed debt and private debt
dropped 0.6 percentage points and 0.3 percentage points respectively. In 2003,
foreign borrowings were intended to finance the budget deficit (15.9 percent) and
some economic activities in the following sectors: transport and warehousing (15.7
percent), electricity and heating, natural gas and water (10 percent), manufacturing
(10 percent), public administration (8 percent), financial, banking and insurance
activities (7.7 percent), and construction (5.5 percent). Composition of mediumand long-term external debt by creditor further illustrates the growing share of
private creditors, which held 62.5 percent of total as compared with 59.4 percent at
end-2002, following their investing in Eurobonds issued by the Ministry of Public
Finance and their lending activities, concurrently with the drop in the share of
international financial institutions and bilateral creditors to 33.5 percent and 4
percent respectively.
Composition of medium- and long-term external debt by maturity followed the
preceding years trend. Thus, the share of long-term external debt widened by 3.4
percentage points from end-2002 to 72.8 percent of total medium- and long-term
external debt.

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As for composition of medium- and long-term external debt by currency, at end2003 the euro was in the lead (54.2 percent, up 6.6 percentage points against end2002), followed by the US dollar (38.7 percent, down 7.7 percentage points) and
other currencies (7.1 percent, up 1.1 percentage points). As for the medium- and
long-term external debt service by currency, the euro also held the largest share
(49.3 percent), followed by the US dollar (43.8 percent) and other currencies (6.9
percent).

External indebtedness indicators stayed within normal limits in 2003 as well.


Medium- and long-term external debt accounted for 33.4 percent of GDP at yearend and 84.2 percent of exports of goods and services, on the wane year over year,
amid robust economic growth. Medium- and long-term external debt service ratio
shrank from 21.1 percent in 2002 to 17.6 percent in 2003 owing to higher exports
of goods and services. Meanwhile, import cover of the National Bank of Romanias
reserves fell from 4.2 months to 4.1 months as a result of larger imports of goods
and services.

D. Fiscal developments
Fiscal policy in terms of the 2003 budget was further aimed at underpinning the
achievement of several macroeconomic objectives, i.e. to maintain fast-paced
economic growth, to cut unemployment rate, to contain the current account deficit,
and to strengthen disinflation. The major constraint the authorities faced in their
effort to concomitantly achieve those targets was precisely their own goal, i.e. to
contain the consolidated general government budget at a level similar to that seen
in 2002 (2.65 percent of GDP).
The 2003 draft budget, based largely on programmes, mirrored the contrary
influences likely to be induced by the implementation of social protection measures
and the alteration of some duty and tax rates. For 2003, the following measures
were envisaged: to further implement the pension realignment stages, to raise the
economy-wide gross minimum wage and the child benefit, to curtail the social
security contributions paid by both employees and employers, to lower the
development fee incorporated in the electricity price, to increase gradually profit
tax applicable to export activities, and to raise excise duties gradually so that they
be brought into line with the European ones.
Since the budgetary programme was drafted by taking account of preserving the
year-earlier consolidated general government deficit as a share of GDP, the planned
year-on-year increase in revenues (by roughly 0.4 percentage points share-to-GDP)
would have allowed the attendant loosening of public spending. Nevertheless, the
originally planned figures of both revenues and expenditures of the consolidated

42

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2003
Chapter 2. National economy

general government budget proved unsustainable, especially those included in the


revised budget (in August 2003). The rise in revenues was weaker than anticipated
due to larger-than-projected cut in revenues from direct taxes (0.7 percentage
points share-to-GDP compared with the 0.2 percentage point cut envisaged by the
revision); moreover, the share of expenditures in GDP remained flat against a year
earlier, due to larger savings on public-debt-related interest expenditure and failure
to comply with the programme of transfers and capital expenditure. Therefore, the
consolidated general government deficit as a share of GDP was below the level
foreseen for 2003, on the slide for the third year in a row.
Throughout 2003, monthly balances of some consolidated general government
budget components saw divergent developments as against 2002. The government
budget posted its highest monthly shortfall in December, unlike in 2002 when the
largest shortage had been recorded at mid-year. The state social security budget
displayed relatively small monthly shortfalls for most of 2003 and the final three
months of the year saw a noticeable rebound, causing the annual balance to post a
surplus for the first time in the past few years.
Table 3. Consolidated General Government Balance

Structural deficit
Primary surplus (+)/ deficit (-)

2002
2003
ROL billions % of GDP ROL billions % of GDP
-39,827
-2.6
-43,769
-2.3
5,975
0.4
-3,749
-0.2

The consolidated general government budget ended 2003 on a deficit of ROL


43,769 billion, constituting 2.3 percent of GDP, down 0.3 percentage points
compared with 2002. The cut in the deficit was accompanied, in 2003 too, by
worsening of the primary balance, which turned negative after having recorded a
surplus for four years. Despite a slight increase, revenues proved insufficient to
cover the outlays which exclude public-debt-related interest payments; primary
deficit accounted for 0.2 percent of GDP against a primary surplus of 0.4 percent of
GDP in 2002 and of 0.3 percent of GDP, as originally estimated.
The budgetary figures approved ever since end-2002 (for the second successive
year) were subject to revision in August. The revision was caused by weaker
collection of direct taxes (social security contributions in particular), savings on
public-debt-related interest expenditure, as well as non-performance of
expenditures by some government institutions benefiting from government budget
resources. The new projections of budgetary figures were harmonised with the
newly-forecasted economic growth level, i.e. 4.8 percent, 0.4 percentage points
below the original estimate; the 12-month forecasted inflation rate was kept at 14
percent.

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Annual
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2003
Chapter 2. National economy

Consolidated General Government Budget


ROL -43,769 billion
(-2.3)
( ) % of GDP

National public budget


ROL -27,375 billion
(-1.4)

Extrabudgetary funds
ROL - 17,355 billion
(-1.0)

Government budget
ROL -29,003 billion
(-1.5)

Unemployment
benefit fund
ROL 2,610 billion
(+0.1)

Local budgets
ROL -141 billion
(-0.01)

Health insurance
fund
ROL -7,138 billion
(-0.4)

State social security


budget
ROL 1,769 billion
(+0.1)

Other
ROL -12,827 billion
(-0.7)

External loans
to ministries
ROL -35,990 billion
(-1.9)

Inter-budget
transfers
ROL 7,473 billion
(+0.4)

Adjustments
ROL 29,478 billion
(+1.6)

In 2003, composition of the consolidated general government budget underwent


changes arising partly from bringing two special funds within the scope of the
government budget. Moreover, the consolidated general government balance
reflected the influence of developments in its components. While in 2002 the
government budget showed the largest deficit, in 2003 foreign loans to ministries
displayed the widest shortfall. Furthermore, the local budgets, health insurance
fund, and state social security budget witnessed atypical developments from the
previous years, with the first two components closing the year on deficit and the
last one on surplus. The National Road Administration deficit widened markedly,
its share in GDP being twice as high as that of a year earlier, while adjustments
(including principal repayments on foreign debt and exchange-rate gains/losses
associated with domestic and foreign public debt) accounted for 1.6 percent of
GDP, down 0.5 percentage points against 2002.
Consolidated general government revenues amounted to ROL 566,463 billion at
end-2003, accounting for 30 percent of GDP (up 0.3 percentage points year on
year). This rise was attributed to indirect taxes whose share in GDP increased by
one percentage point. Receipts from indirect taxes such as VAT, customs duties,
and excise duties rose in a range from 0.1 percentage points to 1.1 percentage points
as a share of GDP, with the latter posting the heftiest increase. This expansion
stemmed from both the hike in excise duties on some categories of goods and the
inclusion in the total excise duties on mineral oils of the flat excise rate on

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2003
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automotive fuels to ensure public roads financing. Conversely, payments from


direct taxes as a proportion of GDP declined by 0.7 percentage points compared
with 2002, shedding 3 percentage points to 52 percent of total revenues.
Collections from social security contributions as a share of GDP went down 1.1
percentage points as a result of their 5 percentage point fall, from 57 percent to 52
percent as a share of gross wage. This drop was slightly offset by the larger profit
tax collections (up by 0.3 percentage points share-to-GDP), owing mainly to the
increase in profit tax paid by export-oriented companies, from 6 percent to 12.5
percent (ahead of implementing a standard 25 percent rate in 2004).
After having contracting for three years in a row, the tax burden calculated as a
ratio of tax revenues of the consolidated general government to GDP increased
slightly year on year, accounting for 27.9 percent of GDP (up 0.3 percentage points
share-to-GDP); yet it declined compared with the relative value recorded in 2001.
Consolidated general government expenditures stood at ROL 610,232 billion at
end-2003, accounting for 32.3 percent of GDP, the same reading as in 2002. The
composition of spending changed only slightly as the movements in the shares of
various outlays offset one another. Thus, public-debt-related interest payments,
transfers, and staff costs crept down in relative terms by 0.9 percentage points, 0.6
percentage points, and 0.1 percentage points of GDP respectively, while subsidies,
outlays on other goods, and capital expenditures went up 0.7 percentage points, 0.5
percentage points, and 0.3 percentage points of GDP respectively.

Government budget deficit neared ROL 29,003 billion at end-2003, i.e. 1.5
percent of GDP, half of the previous years level. For the fifth year in a row, the
government budget deficit undershot the target (set at 2.4 percent of GDP
following the revision in the latter half of 2003).
Government budget revenues added 1.6 percentage points year on year to 13.4
percent of GDP. The increase was almost solely driven by collections of indirect
taxes amid improved collections of taxes and duties. Therefore, collections of
indirect taxes saw their share in total revenues widening to 74 percent.
Government budget expenditures dropped fractionally from the previous year,
standing at 14.9 percent of GDP; behind the cut in spending stood the contraction
of public-debt-related interest payments (by 1.5 percentage points as a share of
GDP), which was partly offset by the increase in almost all items on the
expenditure side.

Local budgets displayed, for the first time in the past few years, a gap of roughly
ROL 141 billion. Compared with the previous year, both revenues and expenditures

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Annual
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Chapter 2. National economy

enjoyed larger shares in GDP, their composition remaining unchanged. Revenues


grew mainly on the back of subsidies from the government budget and amounts
broken down from income tax. Outlays on services and public development, social
work, transport and communication went up whilst expenditures earmarked for
specific purposes were almost halved.

State social security budget made a breakthrough, ending the year on a surplus of
about ROL 1,769 billion, or 0.1 percent of GDP (compared to a deficit of 0.7
percent of GDP a year earlier). The surplus was the result of contrary movements.
Thus, in year-on-year comparison, the share of revenues in GDP widened 0.2
percentage points to 6.6 percent, while the share of expenditures in GDP narrowed
0.6 percentage points to 6.5 percent. This performance can be ascribed to larger
subsidies from the government budget, as their share in GDP doubled and to lower
payments intended to state social security pensions.
Budget deficit financing and public debt refinancing were covered from both
external and domestic sources. In 2003 too, foreign funds aimed at bridging the
budget deficit consisted of loans extended by international financial institutions to
ministries and of the proceeds from Eurobond issues launched on the international
capital market. Externally-supplied funds strengthened their share in total financing,
thus ensuring full coverage of the consolidated general government deficit.
As regards borrowings from domestic sources, the non-bank sector remained the
only provider of fresh funds, but the value of such funds was well below that of
redemption of government securities held by banks. The fresh ROL-denominated
funds provided by non-bank legal entities and individuals in 2003 amounted to
ROL 3,700 billion, whilst the amount of ROL-denominated government securities
redeemed from banks dropped by more than ROL 17,600 billion.
Throughout the year under review, the Ministry of Public Finance launched almost
each month (except April) issues of Treasury certificates for individuals, with
maturities of three and six months. The average interest rate on such issues was 1.3
percentage points above the average interest rate on time deposits. Their monthly
yields followed a downward path until November, when they were raised by one
percentage point, failing however to revert to the level seen at the beginning of
2003. In 2003, individuals purchased fresh Treasury bills worth ROL 370 billion,
down ROL 3,600 billion over the year before.
In addition, the Ministry of Public Finance organised weekly auctions to sell ROLdenominated Treasury bills and bonds intended to banks and their clients.
Government paper issued in 2003 dropped nearly 15 percent year on year to little
more than ROL 59,800 billion. By contrast, the volume of government securities

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2003
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falling due picked up close to 20 percent from a year earlier. The Ministry of Public
Finance succeeded in hitting an all-time high as regards redemption of government
securities from banks, i.e. over ROL 14,000 billion. On the other hand, fresh funds
provided by bank clients totted up ROL 3,400 billion.
The term structure of ROL-denominated government securities diversified in
March and November, when issues with 3- and 5-year maturity respectively were
first launched; the latter issue bears, for the first time ever, a half-yearly CPI-linked
coupon. Those changes notwithstanding, the 12-month average maturity of
government paper expanded by merely 30 days, since bids submitted for acquiring
Treasury bonds with maturities of 2 and 3 years in the latter half of 2003 were
entirely rejected; government securities with maturity of one year kept their largest
share in total government securities issued.
The average interest rate on government securities issued contracted year on year
by around 11 percentage points to 16 percent. Over the reference period, the
interest rate on Treasury certificates swung between 14.2 percent and 18 percent
in October, interest rates on paper with maturity of up to one year surged markedly.
In 2003, foreign-exchange-denominated government securities continued to be on
offer. Apart from USD-denominated issues, EUR-denominated ones were floated for
the very first time. Following the four issues launched in 2003, the Ministry of Public
Finance raised some USD 337 million and EUR 69 million, with maturities of three
years and one year respectively, at an annual interest rate ranging from 4 percent to 5
percent. The proceeds were used to ensure redemption of maturing government
securities that neared USD 463 million (out of which approximately USD 57 million
in government paper issued under the bank restructuring programme).
In order to secure smooth payments from the government budget in the first half of
2003, the Ministry of Public Finance resorted occasionally to collection of deposits
on the money market. As a result, over ROL 9,400 billion were raised, the deposits
having an average maturity of two days and an average interest rate equal to 18.9
percent.
Local public authorities resorted, for the third year in a row, to the launch of new
issues of municipal bonds in order to ensure funding for investment projects. In
2003, the value of such issues nearly quadrupled from 2002, yet it remained
relatively low (some ROL 465 billion); interest rates on those bonds remained
linked to BUBID and BUBOR rates, with coupon payment being made either on a
quarterly or a half-yearly basis.

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Domestic public debt23 came in at ROL 114,942 billion at end-2003; its share in GDP
narrowed by 1.1 percentage points year on year to 6.1 percent, on the wane for the
second successive year. Actual public debt (excluding bridge loans granted from
funds in some government accounts) decreased by 1.5 percentage points share-toGDP year on year, down to nearly ROL 79,106 billion.
Domestic public debt composition is further indicative of the large share of ROLand foreign-exchange-denominated government securities in total public debt, even
though this share narrowed by some 11 percentage points against 2002 to 61
percent. On the other hand, bridge loans which came in second saw their share
rising 10 percentage points year over year to 31 percent of the total figure. As for
the rest, government guarantees underlying domestic loans accounted for about 7
percent of total public debt and government securities issued under special laws
took roughly one percent of total.

23

48

As defined in Article 1, point 3 of Law No. 81/1999 Public Debt Act, excluding municipal bonds

National Bank of Romania

Annual
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2003

Chapter 3. Monetary policy


A. Monetary policy
1. Monetary policy goals and guidelines
The same as in previous years, in 2003 the objectives highlighted in Romanias
Medium-Term Economic Strategy represented the benchmarks of monetary policy
goals and guidelines. Adding to these were the commitments taken on by the
Romanian authorities at the current stage of negotiations for Romanias integration
in the EU (Pre-accession Economic Programme and Position Paper on Chapter 11
Economic and monetary union) and the economic programme underlying the
second Supplementary Memorandum of Economic and Financial Policies under the
latest Stand-by Arrangement with the IMF.
The 2003 economic programme was designed to ensure further fast-paced
economic growth and sustainable progress in disinflation, with GDP growth of 5.2
percent and 12-month inflation rate of 14 percent (December/December). Such a
bold programme stemmed from Romanias need to gain ground in the catching-up
process with the EU and to gradually achieve nominal and real convergence with
the eurozone economies, although the simultaneous accomplishment of the two
macroeconomic objectives was not risk-free. Additional strains originated from the
dismal economic prospects for developed countries, as well as from the sizable
administered price adjustments envisaged for 2003.
The inflation target set for 2003 was a challenge for the monetary policy. The NBR
assumed responsibility for achieving this objective in the context of an economic
programme featuring an integrated, consistent macroeconomic policy mix, which
was predicated on carrying out structural reforms and taking steps to improve the
business environment. Seen from the central bank perspective, the policies
addressing structural reforms were aimed at extending the scope of influence
exerted by monetary policy and enhancing its efficiency, playing also an essential
role in mitigating non-monetary causes of inflation, mainly by stimulating the
response of aggregate supply while fiscal and income policies were intended to
support the monetary policy to efficiently manage the aggregate demand. An
important bearing on assuming the inflation target had the credibility that the
central bank and government had gained in 2002 as a result of undershooting the
inflation target and achieving the projected economic growth rate.

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2003
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However, the tight fiscal policy pursued for most of 2003 failed to counteract the
effect of increase in the minimum wage economy-wide on the aggregate demand.
The surge in incomes spurred household consumption and demand for loans, the
domestic absorption which entailed the expansion in imports as well becoming
in 2003 the engine of economic growth to the detriment of exports. Substitution
among GDP components by expenditure was also supported by the slow economic
growth in the developed countries that put a brake on the growth rate of Romanian
exports in 2003.
Faced with the threat of severe widening of the current account deficit and inflation
slippage, the NBR had to recalibrate the monetary policy and reformulate the
guidelines set at the start of the year. By resorting to a mix of tools, among which
the interest rate played a more significant part due to the improved monetary
transmission mechanism, the central banks strategy and monetary policy stance
were instrumental in dampening the step-up in consumer price growth rate.
Towards year-end, inflation rate reverted to the envisaged trend, so that in
December it ran only 0.1 percentage points higher than the target; in addition,
economic growth was not affected, with GDP increasing at a pace close to that
projected under the programme. The mix of monetary policy tools was also
instrumental in averting too large an external disequilibrium, although the current
account deficit accounted for 5.7 percent of GDP, a relatively high level.

2. Implementation of monetary policy


In 2003, the formulation and implementation of monetary policy decisions were
consistently aimed at ensuring sustainable deceleration of inflation without
jeopardising the short- and medium-term economic growth. In the pursuit of
achieving inflation target, the central bank implicitly acted towards warding off the
worsening of external disequilibrium, the traditional conflict between the two
macroeconomic objectives being softened markedly in 2003. Moreover, the NBR
honoured one of the commitments assumed by the Romanian authorities under the
Pre-accession Economic Programme by adopting the euro as the reference currency
for the ROL on 3 March 2003.
All through 2003, the conditions for monetary policy implementation underwent
major changes caused by the domestic and world macroeconomic developments as
well as by the structural changes to the Romanian economy. In this context, the
central banks capability to accurately assess, in a changing environment, the shortand longer-term trends of the main macroeconomic indicators and have a prompt
and especially an efficient reaction to the possible detraction from the initially
established goals was put to trial. Thus, the relative easing of the monetary
conditions in the first quarter of 2003 was followed by a period when the policy

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rate was kept unchanged and, thereafter, by gradual tightening of monetary policy
stance.

Policy Rate* in 2003


22.0

percent per annum

21.5
21.0
20.5
20.0
19.5
19.0
18.5
18.0
J

*) maximum interest rate on one-month sterilisation operations

The economic slowdown at the beginning of the year, which was manifest
especially in industry, as well as progress in the downward trend of inflation rate
and alleviation of inflation expectations were the main factors which prompted the
central bank to cut again, at the outset of 2003, its policy rate, after a short period,
towards the end of 2002, when the policy rate was kept unchanged. Other factors
that weighted on pushing down the interest rate on sterilisation operations were the
persistency of the risk of attracting speculative capital inflows and the need to
narrow the spread between real interest rates on ROL-denominated loans and those
on foreign exchange-denominated ones. Moreover, a warranty and, at the same
time, an incentive to lower the NBRs policy rate was the maintenance of a narrow
budget deficit.
The central bank continued to cut the policy rate in the first few months of 2003,
although the size and frequency of rate cuts1 declined from 2002 Q4;
simultaneously, the interest rate on the lending facility was lowered from 45
percent to 30 percent. Relaxation of monetary conditions mainly through the
interest rate channel but also due to the smaller real appreciation of the ROL
against the implicit currency basket overlapped with an unexpected (and therefore
hardly identifiable immediately) upturn in household consumption; one of the
factors behind this reinvigoration was the rise in the economy-wide minimum
1

During the first three months of 2003, maximum interest rate on deposit-taking operations was
lowered three times by 1.5 percentage points in all.

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wage, which had a direct contribution to the almost 10 percent real increase in the
average net wage during 2003 Q1, compared with the same year-earlier period.
Higher competition among banks2 and lower risk of adverse selection, as perceived
by banks, stepped up the impact of the cut in the central banks policy rate on the
behaviour of the main categories of economic operators; against this backdrop,
banks supply of loans to the non-government sector was on the upside, with the
lending rates going down faster than the interest rates paid on time deposits.
Moreover, an unexpectedly prompt reaction to the drop in interest rates on ROLdenominated loans and, in particular, to the signal conveyed by the cut in the
NBRs interest rates was evidenced by the demand for loans from companies, and
especially from households, as the expectations of these operators became
sensitive, particularly in the last two years, to changes in the policy rate; thus, these
operators anticipated further decline in interest rates.
The unfavourable effects of the step-up in the growth rate of ROL-denominated
non-government credit on the macroeconomic equilibrium were not revealed
instantly, but the central bank made the decision, in the first part of 2003 Q2, to
halt the cut in its interest rates. The main argument in favour of this step was the
need to curb the widening of the foreign exchange market deficit and the ensuing
adverse effects on the exchange rate and, implicitly, on inflation. Since most of this
deficit was the outcome of a temporary reversal of capital flows, the central bank
intervened in the forex market selling about EUR 100 million in April and May
2003; nevertheless, movements in the forex market led to faster depreciation of the
ROL against the currency basket, thereby entailing a larger depreciation of the
ROL versus the euro, against the backdrop of the strengthening of the euro vis-vis the US dollar.
Fast rebound of bank intermediation due to the surge in the volume of credits in
ROL and foreign currency has become a matter of concern for the central bank,
once rapid increase in imports and widening of the trade deficit were recorded.
Against this background, despite swift deceleration in consumer price growth rate
(after the first six months of 2003, the 12-month inflation rate came down to 14
percent), the NBR made the decision to keep the policy rate unchanged at 18.25
percent for several months. This move proved, however, insufficient to put a
damper on the gradual worsening of macroeconomic conditions, amid the action of
several macroeconomic and structural factors.

The main cause of this phenomenon was the relative drop in interest rates on banks deposits due to
both the cut in interest rate on deposits placed with the NBR and the abrupt decline in the public
authoritys resort to domestic resources starting April 2003.

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Thus, the trade deficit widened further as a result of both faster surge in imports
and slowdown in exports, the latter triggered chiefly by the dismal economic
performance of the main trading partners. Sped-up increase in imports was entailed
by the higher growth rate of domestic demand and especially of household
consumption and investment rather than by the substitution effect.
One possible explanation for the strong reinvigoration of household consumption is
the repressed consumption during the last few years; behind the change in
propensity for consumption stood mainly the rise in real wage, households
optimistic expectations on incomes, unprecedented expansion in the range of loans
to households, and looser lending terms. Consumption upturn was associated with
lower propensity for saving as also reflected by the drop in real growth rate of
household gross financial saving3 to a 3-year low and, in particular, by the decline
in net financial saving (calculated by subtracting the volume of loans from total
saving), which reached a historical low at year-end.
Given this context, which put in jeopardy the sustainability of disinflation on
medium term and, implicitly, of robust economic growth, as well as the restricted
room for manoeuvre of the other policies for the management of aggregate
demand, the central bank tightened the monetary policy stance in a proactive and
transparent manner; this shift in the monetary policy stance was also aimed at
running counter to the threat that fast credit expansion could pose to banking
system stability. The central banks decisions to tighten monetary policy were also
aimed at minimising the inflationary impact of administered price adjustments in
the latter half of the year. The change in the monetary policy stance materialised in
the use of interest rate and exchange rate levers, the latter playing further an
important part in the monetary policy transmission mechanism. It is worth
mentioning that in line with preparatory work for shifting to inflation targeting, the
NBR explained its decisions to the public at the time of their enforcement.
During August-November 2003, the central bank raised the maximum interest rate
on deposit-taking operations three times, each time by one percentage point; thus,
despite inflation bouts in 2003 H2, real maximum interest rate went up. By
resorting to a gradual increase in its interest rate, the central bank aimed to avoid
steep restraint in credit expansion4, and implicitly the undermining of economic
growth, in an environment where uncertainties surrounding sensitiveness of
demand for and supply of credits to the upward revision of the NBR rates
prevailed.

Estimate based on the volume of deposits with banks and Treasury certificates portfolio
The dramatic increase in credit was partly justified by the tendency to catch up with the other
accession countries in terms of bank intermediation and monetisation of the Romanian economy.
4

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On the other hand, the last two moves in the NBR policy rate were needed since
the lending rates applied by banks and, implicitly, the supply 5 of and demand for
credit reacted slowly and less sizeably to the first increase in the central banks
policy rate; in the last three months of 2003, the monthly growth rate of ROLdenominated credit decelerated marginally but its annual growth rate hit a record
high of 77.4 percent (in real terms), due mostly to lending to households. Given
that the NBR rate hike passed through relatively rapidly to the interest rates on time
deposits, the interest rates on loans and, implicitly, the lending process reflected, in
the first few months of 2004, the firming in the monetary policy stance, thus
ensuring achievement of sustainable disinflation. The change in expectations of
credit institutions and of various categories of economic operators on monetary
policy stance acted to the same end.
Tightening of monetary conditions played a more effective role in restraining
spillover effects of administered price adjustments, thus inhibiting also the rebound
in inertial component of inflation and of inflation expectations associated with such
an economic environment. However, adjustment of administered prices had a
noticeable direct impact on the general level of prices, with inflation rate reverting
to the projected trend no sooner than towards year-end, after several months when
disinflation virtually stalled.
The NBR rate hike also had a significant impact on the trajectory of the ROL
exchange rate, enhancing its role of implicit antiinflationary anchor. In addition,
the exchange rate of the ROL continued to evolve favourably versus the euro and
the US dollar from the viewpoint of the policy of underpinning the restoration of
the external position, owing mainly to the beneficial influence of the EUR/USD
rate movement on the international markets. Another factor upholding this
development was the fact that the NBR continued to resort to the informal currency
basket as the benchmark for its exchange rate policy and, implicitly, for its forex
market intervention policy. Against this background, the ROL posted a real
average annual depreciation of 4 percent against the euro (versus 2 percent
appreciation in 2002) and an appreciation of 14.8 percent vis--vis the US dollar
(compared with a strengthening of 7.7 percent in 2002). The central banks net
forex purchases, albeit less sizable than in the previous year, required additional
costs related to liquidity sterilisation, the balance of deposits taken by the NBR
reaching a new historical high in 2003.

Large substitution of banks foreign liabilities for domestic liabilities triggered by mounting external
resources was yet another factor behind lower efficacy of the NBR rate hike.

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3. External constraint
In 2003 too, foreign trade and the impact of international financial market
developments on the domestic financial market had an important bearing on the
monetary policy stance. Widening of the trade deficit was the primary matter of
concern.
Unlike the previous years, recourse to the monetary policy tools to fend off the
widening of the trade deficit did not entail a major conflict between the central
banks objectives and monetary policy implementation, because the NBR efforts
were aimed at supporting disinflation by softening domestic absorption, rather than
at sustaining export competitiveness and depressing imports by forcing the ROL to
weaken against the major currencies. Such an approach, with the interest rate
serving as an instrument, stemmed from the inadequate cost/benefit ratio implied
by using the exchange rate for this purpose; thus, the strong depreciation of the
ROL would have had a marginal effect on the trade deficit, but, at the same time, it
would have certainly hindered, at least in the short run, deceleration in inflation
rate.
Moreover, the central bank raised its interest rate as factors entailing the widening
of the trade deficit were rooted mostly in the lack of timing between the growth
trend in Romania and the economic slowdown affecting its main trading partners.
Thus, fast growth rate in imports (up 12.3 percent)6 was attributable to strong
consumer and investment demand as well as to some incidental factors (such as
prolonged winter, severe drought). In addition, export growth rate slowed down
(6.4 percent compared with 15.4 percent7 in 2002) due mostly to weak demand
from traditional export outlets, the high uncertainty and mounting geopolitical
tensions deferring economic upturn in the main trading partners. Adding to the
unfavourable external conditions was the relative competitiveness loss in sectors
holding a large share of exports8; in this specific case softening of the ROL versus
the euro could not offset the effects of lower productivity gains and higher wages.
The same as in the previous year, international financial market developments
exerted a stronger constraint on the monetary policy conduct; thus, movements in
the balance-of-payments financial account fuelled the difficulties encountered in
formulating and implementing monetary policy.
Thus, in 2003 H1, a matter of concern for the central bank was the lower-thanexpected performance of capital account triggered by changes in foreign investor
6

Based on balance-of-payments figures


Based on balance-of-payments figures
8
Wearing apparel, footwear, and leather goods
7

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sentiment and preferences amid larger exposure of the domestic financial climate
to capital flows. Thus, in the context of increased unpredictability in the
international financial markets, the Romanian economy had to grapple with a
temporary reversal in capital flows as shown by (i) one-off outflows in 2003 Q2
(profit repatriation and portfolio diversification following liberalisation of some
capital account operations, and (ii) lower capital inflows associated mainly with a
shift in worldwide capital flows. These phenomena eventuated in the short-term
imbalance of the demand/supply ratio in the forex market, thereby creating scope
for stronger pressure on the ROL exchange rate and, implicitly, on inflation rate;
this state of affairs called for the central bank intervention, which materialised in
foreign exchange sales that entailed the decline in official foreign exchange
reserves.
Foreign exchange market conditions rebounded in the latter half of 2003 amid the
improved investor sentiment, the upgrading of Romanias rating by international
agencies and the Eurobond issue by the Ministry of Public Finance, thus enabling
the central bank to resume foreign exchange purchases aimed at softening the real
appreciation of the ROL and building up international reserves9.
However, from the viewpoint of efficiency and costs associated with the
implementation of monetary policy, the resumption of capital flows represented a
risk factor which the central bank had to assume given that its decisions to hike the
policy rate in the latter half of the year led to a wider differential between the
domestic interest rates and the interest rates on international markets. A matter of
concern for the NBR was the fact that in 2003 H2 the share of potentially volatile
capital inflows increased. In an attempt to offset the short-term impact of these
capital flows on monetary variables, the central bank had to resort to liquidityabsorbing operations, thereby increasing the balance of deposits taken.
In addition, widening of the differential between domestic interest rates and
external interest rates along with fiercer competition among banks (but also
between banks and other newly-established credit institutions) and strong demand
for loans supported banks balance sheet restructuring. Credit institutions resorted
to a larger extent to foreign liabilities (up 82.2 percent) to finance loans, delaying
the rise in interest rates on residents deposits; at the end of 2003, banks foreign
liabilities accounted for 11.7 percent of total liabilities (compared with 7 percent at
end-2002) while time deposits in ROL went up only 0.9 percentage points as a
share of broad money (compared with a 4 percentage point increase in 2002).

International reserves rose by EUR 482.5 million in 2003, after having declined by EUR 541.8
million in 2003 H1.

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4. The impact of fiscal developments


In 2003, fiscal policy supported disinflation, with budget deficit being kept under a
tight rein; however, the year-end witnessed an increase in budget outlays that put
additional pressure on the balance-of-payments current account. Despite this
slippage, consolidated budget deficit was lower than projected, due mainly to large
collections of indirect taxes and decline in expenditures associated with interest
rates on public debt. The strategy of budget deficit financing and public debt
refinancing was less supportive of monetary policy; thus, in 2003, the Ministry of
Public Finance decisions had an uneven influence on the liquidity policy and the
interest rate policy.
After being well co-ordinated with the monetary policy stance for most of 2003,
fiscal policy loosened suddenly in the last few months of the year, when fast
increase in general government final consumption10 spurred domestic demand,
thereby worsening macroeconomic imbalances. The pro-cyclical stance of fiscal
policy was at odds with the gradual tightening of monetary policy stance, which
was aimed at alleviating the potentially-inflationary expansion of domestic
demand. From this standpoint, the temporary lack of timing between the fiscal and
monetary policies was one of the causes underlying the worsening of the
demand/supply ratio in the foreign exchange market at the end of 2003 when
higher pressure for a weaker ROL made the central bank revert to the seller
position.
Implementation of monetary policy was also hindered by the decisions governing
public debt management. The same as in the previous years, the primary aim of
fiscal policy was to lower interest-related expenditures as this was a decisive move
towards meeting the budget deficit objective. To this end, the Treasury rejected
increasingly the bids submitted by banks to the auction sessions, the volume of bids
accepted declining from 104.9 percent in January 2003 to 6.3 percent in September
2003 as a share of total pre-announced volume.
Activity in the primary market for ROL-denominated government securities
receded in 2003 H1 as a result of a narrow budget deficit and the use of alternative
financing instruments (such as collection of very short-term deposits, issuance of
USD- or EUR-denominated government paper, Eurobond issue). The Ministry of
Public Finance also cut gradually the volume of two- and three-year bonds with
fixed coupon and, starting October 2003, suspended such issues.
10

After having increased by 1.3 percent during the first nine months of 2003, general government
final consumption rose by 4.6 percent for the year as a whole compared with a 5.8 percent decline in
2002. As concerns budget items, at end-2003, the heftiest increases were recorded by materials
expenditure, subsidies, and transfers.

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Against this background, the yields on short-term government securities diverted


from the trend of the central bank interest rates, the spread (under comparable
terms) between the two variables reaching a record-high of 4.4 percentage points in
August. Unlike the previous years, widening of this spread did not put pressure on
the central banks interest rate policy decisions; the main reason was the rigid
policy pursued by the public authority, which depressed gradually the activity on
the primary market for government securities, with yields on Treasury certificates
being no longer seen as benchmarks. Towards the end of the year, amid widening
of budget deficit and tightening of monetary policy, which induced the rise in
interbank interest rates, the Ministry of Public Finance accepted the adjustment of
interest rates; although the spread between the interest rates on government
securities and the interest rates on liquidity-absorbing operations narrowed, it
continued to be higher than that registered at the end of 2002.
The imbalance on the primary market for government securities and heavy
recourse to external sources to support budget deficit financing and partial
refinancing of domestic public debt had a greater impact on the liquidity policy of
the central bank. While in 2003 H1 the Treasurys operations resulted in a net
absorption of more than ROL 16,000 billion (due mostly to the settlement of
payments on external debt and the NBRs maturing government securities), in 2003
H2 the fiscal authority made liquidity injections of about ROL 5,400 billion, thus
contributing to the increase in costs of liquidity-absorbing operations.

5. Monetary policy tools


The main arguments supporting further adjustment of monetary policy tools were
the need to fulfil preconditions necessary to the adoption of inflation targeting
strategy and to ensure that monetary policy reacted properly to the evolving
environment. The same as in 2002, the steps taken to this end were aimed at
enhancing the effectiveness of monetary policy amid strengthening the role played
by interest rate in the monetary policy transmission mechanism. Thus, in order to
increase the impact of policy rate changes, the NBR made the decision to conduct a
more transparent policy, by publicly announcing and explaining its monetary
policy decisions starting August 2003. Moreover, the central bank made efforts to
reconcile the two principles that had to be addressed primarily in the operational
framework of monetary policy (especially as a result of changes in the minimum
reserve mechanism, which had been operated in 2002), namely to enhance
flexibility of monetary policy operations and to absorb structural surplus liquidity
in the longer run. The central bank opted for an intermediate solution, i.e.
shortening the maximum maturity of operations and turning the one-month deposittaking operations into the most important monetary policy instrument, while the set
of tools used for the implementation of monetary policy is expected to be improved

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and enlarged in the years ahead in keeping with the developments of financial
markets.
Higher demand for ROL-denominated loans, lower fiscal dominance, and changes
in the operational framework of monetary policy helped strengthening the role
played by the interest rate policy in conducting monetary policy, although the
autonomy and effectiveness of monetary policy were hindered further by the
persistent excess liquidity and its uneven distribution in the banking system. The
NBRs interest rates on liquidity-absorbing operations provided however the
benchmark for the movements of interest rates on ROL-denominated operations
carried out between banks and their clients. Moreover, the consistently tight
monetary control ensured an efficient transmission of the central banks interest
rate signals to the interbank money market rates, causing the spread between the
two variables to narrow conspicuously in 2003. Given that only market-related
instruments were actively used in implementing monetary policy, the rise in money
supply was almost entirely the result of the increase in monetary base, the slight
contraction of money multiplier being entailed by the marginal rise in the ratio
between currency in circulation and deposits.
In 2003, the central bank pursued a proactive interest rate policy, using particularly
this lever in order to react to signals of a potential inflation flare-up. Thus,
favourable prerequisites for price developments in 2003 Q1 enabled the central
bank to prudently resume cutting its policy rate, down by 1.5 percentage points.
However, starting 2003 Q2, strains on the foreign exchange market, worsening of
the trade deficit, and slowdown in saving called for bringing to an end the fall in
maximum interest rates on deposit-taking operations. Moreover, in the latter half of
2003, the central bank decided to tighten monetary policy, being concerned about
the widening of external imbalance amid credit expansion; this decision was
implemented by assigning the interest rate channel a more significant part in
signalling the NBR stance. Consequently, the ceiling of accepted interest rate on
liquidity-absorbing operations was raised in August, October and November, each
time by one percentage point, at year-end the real margin of the ceiling exceeding
by far the values recorded in 2003 Q1.
Given that the NBR retained its position of net debtor to the banking system, the
liquidity policy focused on implementing a tight monetary control, which ensured
the minimisation of banks reserve surpluses. Unlike the previous years, banks
options for reserve management weighted more heavily on the quality of monetary
control. Thus, the experience acquired by banks following the more flexible
minimum reserve mechanism (since August 2002) and the narrowing of the profit
margins as a result of keener competition among banks had an impact on the credit
institutions demand for reserves and hence on the effectiveness of NBRs

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mopping-up operations; some banks made attempts to take full advantage of the
opportunities provided by foreign exchange and money markets, engaging in
speculative operations, while others took a conservative approach. Behavioural
changes were driven, among others, by expectations on the magnitude and timing
of changes in the NBR interest rate, uncertainties caused by Treasury settlement
operations being taken over by the TransFonD11, and seasonally-induced sharp
swings of some of the autonomous factors of liquidity. Autonomous factors were
further the main determinants of money creation; the largest liquidity inflows were
engendered by the central bank intervention in the forex market which resulted, in
2003, in net purchases worth EUR 523.4 million12, the settlement of which
equalled 1.1 percent of GDP.

NBR Deposit-taking Operations in 2003


ROL billions
80,000

percent per annum


40

daily average balance

4,000

interest rate

ROL billions

percent per annum


40
daily average transactions
interest rate

60,000

30

3,000

30

40,000

20

2,000

20

20,000

10

1,000

10

0
J F M AM J J A S O N D

0
J F MAM J J A S O N D

In 2003 too, the open market operations continued to be the most important
monetary policy instrument. However, their features underwent several changes;
the only instrument used to absorb excess liquidity in the market consisted in
deposit-taking operations, taking into account that the NBRs portfolio lacked
securities used in performing reverse repo operations, the changes in maximum
accepted interest rate started to be announced when the auctions at the new interest
rate levels were held, while the maximum maturity of transactions was shortened;
in addition, starting May, the central bank standardised to one-month the maturity
of deposit-taking operations. Although the rate of increase in the balance of
deposits taken by the NBR (29.8 percent) slowed down, more frequent
interventions brought about faster increase in the average daily flow of transactions
11

Following settlement operations via TransFonD, banks received behindhand daily estimates
relating to payments performed by the Ministry of Public Finance.
12
In terms of transaction date

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(up 105.2 percent). The total volume of liquidity-absorbing operations rose to 38


percent of GDP (compared with 23.3 percent in 2002) while costs associated with
these operations dropped from 1 percent to 0.6 percent of GDP. The magnitude of
sterilisation operations is also reflected by changes to the central bank monetary
survey, the average annual balance of mopping-up operations being 1.7 times as
high as the average bank holdings on current accounts with the central bank
(compared with 1.4 times in 2002).
The standing facilities provided to banks duly played their part in setting the
bounds of the corridor within which interbank rates fluctuated. With a view to
ensuring better functioning of the standing facilities, the NBR cut the interest rate
on the lending facility from 45 percent to 30 percent in March. Moreover,
overnight rates fell below 5 percent13 only at the end of the last reserve
maintenance period of 2003. Proving an enhanced capacity to manage their
resources, credit institutions resorted less to the deposit facility the only one used
in 2003, usually at the end of the maintenance period. Thus, 20 banks made
recourse to 71 operations to place overnight deposits with the central bank, with
amounts ranging from ROL 7 billion to ROL 1,445 billion; however, the average
value of deposits was 2.7 times higher than that seen in 2002.
Liquidity-absorbing operations were performed as a result of the maturing of most
government securities held by the NBR and the repayment of special credit lines
equalling more than ROL 1,000 billion by the Bank Deposit Guarantee Fund and
Credit Bank.
As for the reserve requirement mechanism, no more alterations were made in 2003
after the ones performed in late 2002. Thus, reserve ratio on deposits kept in ROL
was no longer lowered given the persistently high liquidity surplus in the banking
system while the differential between the reserve ratio on deposits in ROL and that
on deposits in foreign exchange14 remained unchanged in order to relatively daunt
lending in foreign exchange.

13

The interest rate on the deposit facility


The reserve ratio on deposits kept in ROL was lowered to 18 percent while that on deposits kept in
foreign exchange was raised to 25 percent on 24 November 2002.
14

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B. Monetary and financial developments


1. Money and credit
At end-December 2003, broad money (M2) equalled ROL 460,741.3 billion, up
23.3 percent from end-2002, the average monthly growth rate of broad money (1.8
percent) outpacing the average monthly inflation rate (1.1 percent); broad money
rose by 8.1 percent in real terms. During 2003, broad money posted uneven
developments; thus, in the first half of the year, broad money expanded at an
average monthly growth rate of 0.6 percent while during July-December, the
average monthly growth rate was 2.9 percent.
Narrow money (M1) totalled ROL 113,259.8 billion at end-December 2003, up
28.3 percent on the year. The 2.1 percent average monthly growth rate in M1
exceeded that of broad money (M2), thereby resulting in the one percentage point
increase in the share of M1 in M2 and the decline in the share of quasi-money.

Broad Money in 2003


500,000

ROL billions; end of period

100%
foreign exchange
deposits

90%
80%

400,000
time and
restricted
deposits
household
deposits

300,000

70%
60%
50%
40%

200,000
demand deposits

30%
20%

100,000

currency outside
banks

10%

0%
J F MAM J J A S OND

J F MAM J J A S O N D

Currency outside banks equalled ROL 57,978.4 billion, up 27.2 percent from end2002, at an average monthly growth rate of 2 percent. Currency outside banks
expanded by 11.5 percent in real terms, accounting for 12.6 percent of broad
money at end-2003, compared with 12.2 percent at end-2002. Behind the rise in
currency in circulation stood both seasonal factors (payment of dividends for 2002,
payment of holiday entitlements) and incidental factors (realignment of pensions,
payment of some social benefits, severance payments to people laid off following
restructuring, privatisation, or winding-up programmes).

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In 2003, demand deposits picked up 29.4 percent (ROL 12,555 billion), reaching
ROL 55,281.4 billion at end-December 2003; companies with majority and fully
private capital were accountable for more than 60 percent of the increase in
demand deposits. The same as in the previous year, current accounts of households
went up at the fastest clip, i.e. 62.9 percent (42.8 percent in real terms) or ROL
2,340.5 billion, due also to the expansion of card operations.
Quasi-money stood 21.7 percent higher, at ROL 347,481.5 billion, taking the
average monthly growth rate to 1.7 percent. Structural analysis shows that ROLdenominated deposits with banks grew faster than forex deposits (27.2 percent
compared with 16.6 percent).
Household savings (in ROL) with banks amounted to ROL 99,584.8 billion at endDecember 2003, up ROL 10,690.6 billion year on year (12 percent) but down 1.8
percent in real terms. Household savings accounted for 21.6 percent of broad
money, down 2.2 percentage points from end-December 2002.
Corporate deposits in ROL, in total amount of ROL 76,738 billion, posted the
highest growth rate among broad money components, i.e. 54.4 percent (ROL
27,036.1 billion). More than three fourths of the increase was attributable to the
pick-up in corporate time deposits, significant increase being recorded by deposits
of companies with fully and majority private capital (up ROL 16,692.4 billion).
Residents forex deposits expressed in ROL rose by 16.6 percent due solely to the
depreciation of the ROL against the EUR. When expressed in foreign exchange,
deposits dropped by 1 percent to reach EUR 4,163 million at end-December 2003,
accounting for 37.1 percent of broad money. This decline was the result of the
EUR 377.7 million fall in forex deposits of companies with fully and majority
state-owned capital. Household forex deposits expanded by EUR 215.6 million
while deposits of privately-owned companies rose by EUR 57.8 million. By
depositor, household foreign exchange deposits accounted for 50.4 percent (EUR
2,098 million) of total deposits with banks, followed by privately-owned
companies (EUR 1,178.3 million or 28.3 percent) and majority and fully state-run
companies (EUR 239.3 million or 5.7 percent).
Credit to non-government sector advanced 69.5 percent (48.5 percent in real
terms), at an average monthly growth rate of 4.5 percent to reach ROL 302,879.4
billion at end-December 2003.

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In 2003, ROL-denominated loans grew faster than forex-denominated loans. Thus,


ROL-denominated loans stood 102.4 percent higher (ROL 68,311.6 billion) to
reach ROL 135,040.4 billion, their share expanding by 7.3 percentage points of
total bank credit (from 37.3 percent at end-December 2002 to 44.6 percent at endDecember 2003). Forex-denominated loans went up EUR 875 million (27.3
percent), equalling EUR 4,082 million. When expressed in ROL, forex loans
expanded by 49.9 percent due also to the nominal depreciation of the ROL against
the EUR.
Analysis of non-government credit by term structure reveals that medium- and
long-term loans were on the rise, reflecting the clients propensity to resort to loans
for investment and purchase of durables. Thus, medium- and long-term loans
climbed 154.7 percent, at an average monthly rate of 8.1 percent, their share
increasing from the previous year by 16.9 percentage points to reach 50.5 percent
of total bank credit. Short-term loans rose by 26.4 percent (up ROL 31,298.8
billion) to ROL 149,990 billion.
Non-government credit by recipient shows divergent developments.
Loans to households totalled ROL 75,012 billion at end-December 2003,
increasing stunningly by 258.9 percent in nominal terms at an average monthly
growth rate of 11.2 percent; at end-December 2003 loans to households accounted
for 24.8 percent of total loans, up 13.1 percentage points from the previous year.
Loans to fully and majority privately-owned companies added 42.1 percent (ROL
53,177.3 billion), their share in total non-government credit declining from 70.6
percent at the end of 2002 to 59.2 percent at the end of 2003.
Loans to majority state-run companies rose by only ROL 5,888.8 billion, while
their share in total non-government credit dropped by 3.4 percentage points to
reach 9.7 percent. This state of affairs reflects banks reluctance to extend loans to
loss-making companies as well as the privatisation programmes.

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Non-Government Credit in ROL in 2003

deflated by CPI, Dec. 2002=100

(in real terms)


140,000 ROL billions

state-owned sector

households

private sector

120,000
100,000
80,000
60,000
40,000
20,000
0
J

Government credit, net reverted from a debit balance of ROL 21,493.2 billion at
end-2002 to a credit balance of ROL 1,936.5 billion at end-December 2003. The
development of this domestic credit component illustrates the effect of the
following factors: (i) increase in the balance of the General Account of Treasury
(in ROL and foreign exchange) opened with the central bank; (ii) redemption of
some government securities launched on the domestic market by the Ministry of
Public Finance; (iii) expansion of PHARE funds.
The heading Other assets, net continued to record a credit balance, which
increased from ROL 63,432.2 billion at the end of 2002 to ROL 92,295.9 billion at
the end of 2003. Underlying this development were: (i) the 25.2 percent or ROL
16,373.4 billion rise in capital accounts; (ii) the increase in gains from revaluation
of foreign assets and liabilities.
Net foreign assets of the banking system15 expressed in ROL (the foreign exchange
counterpart of broad money) rose from ROL 236,923.5 billion at end-2002 to ROL
252,094.3 billion at end-2003 (by 6.4 percent). The central banks net foreign
assets edged up 25.2 percent or ROL 58,023.1 billion while credit institutions net
foreign assets dropped by ROL 42,852.3 billion. Behind the rise in the monetary
authoritys net foreign assets stood mainly (i) funds raised from the Eurobond issue
launched on the international capital market; (ii) net purchases from interbank
forex market; (iii) loans granted by the IMF under the Stand-by Arrangement
(representing the release of three tranches); (iv) loans granted by the EU

15

gold and holdings of foreign exchange in convertible currencies

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(representing the release of the first tranche under the supplementary arrangement
concluded in November 2002).

Gross International Reserves


in 2003
EUR millions; end of period
10,000
banks' reserves
NBR's reserves
gold
8,000

Net International Reserves


in 2003

EUR millions; end of period


net convertible currencies
gold
net international reserves

10,000

8,000

6,000

6,000
4,000

4,000

2,000

2,000

0
J F M A M J J A S O N D

J F M A M J J A S O N D

The NBRs gold stock dropped by 236.2 kg and the gold price on the international
market went down from EUR 334.34 per ounce at the end of 2002 to EUR 330.88
per ounce at the end of 2003, entailing the decline in the gold stock in terms of
value from EUR 1,132.2 million to EUR 1,118 million (by EUR 14.2 million). The
stock of gold was revalued at end-2003 following the rise in the domestic price
from ROL 375,351 per gram to ROL 437.404 per gram.

2. Financial markets
Banks investment strategy was changed under the impact of less arbitrage
opportunities and narrower profit margins provided by foreign exchange and
money markets, as well as by the unprecedented increase in demand for loans and
fiercer competition among financial system operators; as a result, the volume of
transactions recorded a lower growth rate while the interbank market (excluding
the NBR) lost in depth. By contrast, financial market efficiency was on the mend
due to banks improved behaviour, the beneficial action of the NBRs tools, and
the lack of significant shocks.

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Money market
In 2003, the money market experienced a relative worsening of its quantitative
indicators, due to the following factors: (i) increase in surplus liquidity in the
banking system; (ii) decline in the volume of government securities launched on
the primary market; (iii) depletion of the NBRs government securities portfolio
and considerable drop in government paper portfolios held by banks; (iv) scarcity
of alternative eligible assets. However, the interest rate behaviour continued to
improve as reflected by the significant decline in volatility of interest rates and
their increased sensitiveness towards movements in the NBRs rates.
All in all, the interbank money market witnessed a higher turnover and a gain in
depth, the latter (calculated as the share of total turnover in GDP) hitting a 5-year
high in 2003. The increase in interbank transactions was solely due to the step-up
in the central banks deposit-taking operations, which rose to 38 percent as a share
of GDP, compared with 23.3 percent in 2002. By contrast, the volume of bank-tobank transactions edged up merely 4 percent and its share in GDP declined. Thus,
the ratio between the volume of operations carried out in the two segments of the
market struck a balance, i.e. 1 to 1, compared with 2.2 to 1 in the previous year,
when bank-to-bank transactions prevailed.
The rate of increase in interbank transactions (the NBR excluded) declined from
the previous year despite the persistently uneven distribution of excess liquidity
among market operators, as banks channelled their reserve surplus into deposits
taken by the central bank. Shortening of maturity of deposit-taking operations
became an additional factor inhibiting arbitrage operations associated with interest
rate differential along the yield curve and led to a larger number of banks able to
place deposits with the central bank.
The volume of funds traded in the interbank market (the NBR excluded) fluctuated
all through 2003. Thus, 2003 Q1 witnessed an abrupt surge in turnover and fast
increase in interbank rates, as a result of the rise in the level of required reserves
and of the central banks turning, for a short period of time, the interest-rate tenders
into volume tenders. As a result of banks taking on a greater liquidity risk by
increasing the volume of deposits with the NBR, demand for short-term resources
grew markedly, the average daily volume of transactions in 2003 Q1 (ROL 3,725
billion) being one third higher than that recorded throughout 2003.
Starting 2003 Q2, the volume of funds traded in the interbank market (the NBR
excluded) dropped due to the unprecedented stability of interest rates; as a result of
keeping the interbank rates at a level close to that of the NBR interest rate, the
arbitrage operations through collection of short-term deposits that would be

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subsequently placed with the NBR lost ground. Moreover, low volatility of
interbank rates increased some banks interest in trading occasionally funds with
maturities of up to six months, the resources collected being used for financing the
loans to non-bank clients in particular.
Higher predictability of interest rate developments led to the fall in the share of
overnight and one-week transactions to 85.8 percent and 6.8 percent respectively,
of total interbank trading (the NBR excluded), thereby entailing the increase in
their average maturity to 2.8 days, compared with 2.2 days in 2002; moreover,
banks propensity for longer-term operations led to a 24 percent increase in the
average balance of interbank deposits (to a historical high of ROL 5,268 billion).
The degree of concentration of the interbank money market recorded no significant
progress, posting opposite developments in terms of demand and supply. Thus, the
share of deposits taken by the ten most active market operators dropped from more
than 50 percent to about 35 percent of total demand for resources while the uneven
increase in credit institutions excess liquidity made the share of deposits placed by
the top-three banks rise to almost 50 percent of total supply of resources.
The main factor behind the developments of interbank rates in 2003 was the
flexibility of the required reserve mechanism. The function of this mechanism to
stabilise money market rates contributed decisively to the narrowing of the band
within which the rates fluctuated on a daily basis and to the fall in interest rate
sensitiveness to liquidity conditions.
In 2003 Q1, the interbank rates veered off from the trend as the interbank money
market experienced a relatively strained period due to the impact of
unpredictability of autonomous factors of liquidity.
Starting April, the interbank money market witnessed the most tension-free period
since its opening; the interbank rate volatility hit historical lows while the daily
fluctuation band narrowed markedly, with more than 50 percent of the average
daily rates staying within a 1.2 percentage point band16. The interest rates generally
fell below the lower bound of the band at the end of the reserve maintenance period
when demand for short-term resources was by far exceeded by supply of liquidity.
Although the average interest rates failed to follow immediately the upward
adjustment in interest rates on liquidity-absorbing operations that occurred in the
latter half of the year17, the interbank rates on deposits with maturity of up to three
16
The upper and lower bounds of this implicit band were 17.92 percent and 19.11 percent
respectively.
17
In 2003 H2, the average interbank rates remained steadily below the NBRs interest rate on deposittaking operations.

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months rose simultaneously with the NBR interest rate18, with 6-, 9- and 12-month
BUBOR rates reaching the turning point in June 2003. As a result of the upward
trend of interbank rates in the latter half of the year, the average monthly rate was
about one percentage point higher than in the first half of 2003. In year-on-year
comparison, the average annual rate on bank-to-bank transactions edged down by
4.9 percentage points to reach 18.11 percent.
The quantitative indicators of both the primary and secondary markets for
government securities declined in 2003. The strategy of financing the budget
deficit almost solely from externally-supplied funds served the Ministry of Public
Finances goal to lower the domestic-public-debt interest expenditure but had
negative effects on the activity of the primary and secondary markets for
government securities. Thus, redemptions by the public authority exceeded ROL
14,000 billion; moreover, the central bank, an active market player, did not engage
in trading on the secondary market as most government securities in the NBRs
portfolio reached maturity. As a result, for the fourth consecutive year, the primary
market for government securities recorded a loss of depth, with the volumes traded
declining from 3.9 percent of GDP in 2002 to 2.7 percent, while turnover on the
secondary market fell from 31.4 percent to 17.4 percent as a share of GDP. The
ratio between the volume of funds traded in the primary and secondary markets
was 1 to 6.5 in 2003 compared with 1 to 8 in 2002.
The steadily high demand for ROL-denominated government securities exceeded
supply three times (compared with 2.4 times in 2002). Following the amendments
to the Regulation on government securities operations in December 2002, the
authorised primary dealers had to submit to every auction session bid offers
accounting for at least 10 percent of the pre-announced volume. In 2003, the
amount on offer exceeded steadily the compulsory level, the overbidding margin
ranging from 116 percent to 493 percent. The most sought-after securities were
three-month T-bills, but only 12 out of the 132 auction sessions were conducted for
the sale of such government securities. The same as in 2002, one-year government
securities held the largest share of the government paper issued (accounting for
about 35 percent of total, compared with 47 percent in 2002), for which the
Ministry of Public Finance organised 41 auction sessions. Starting 2003, the public
authority expanded the maturity spectrum by issuing 3-year bonds and inflationindexed bonds with 5-year maturity. The average maturity of government securities
issued rose by only 30 days as bids for 2- and 3-year bonds submitted to auction
sessions were rejected entirely in the latter half of 2003; moreover, in June, the
public authority floated a large volume of one-month Treasury certificates, worth
more than ROL 9,300 billion.
18

Starting 2003 Q2, the correlation coefficient between the NBR interest rate and BUBOR one-month
rate reached 0.95 while that between the NBR rate and BUBOR overnight rate doubled.

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The average interest rate on government securities went down 11 percentage points
year on year, reaching 16 percent. For most of 2003, the average monthly interest
rate fluctuated in a range from 14.2 percent to 15.7 percent, except for June, when
the average yield rose to 17.8 percent as a result of the sale of a large volume of
one-month T-bills, and for the final quarter of 2003, when maximum accepted
interest rate on government paper with maturity of one year at most was raised in a
range from 1.8 percentage points to 2.6 percentage points.
In 2003 too, the Ministry of Public Finance launched foreign exchangedenominated government securities changing the issuing procedure from public
subscription to auction. During 2003, the public authority organised four auctions
(three auctions for USD-denominated bonds and one auction for EUR-denominated
government paper), as a result of which funds raised equalled about USD 337
million and EUR 69 million respectively, whereas government securities reaching
maturity were worth about USD 463 million. The average yield and maturity of
USD-denominated government paper posted opposite developments, the rise in
average maturity from 409 days to 1,098 days being accompanied by the drop in
average interest rate from 5.1 percent to 4.9 percent.
Trading activity on the secondary market for ROL-denominated government
securities slackened, the volume of transactions declining by about 27 percent year
on year. This fall was largely attributed to the central banks decision to suspend
reverse repo operations, but also to the drop in bank/client transactions by almost 9
percent. As a result of these developments, the share of non-bank transactions
expanded to 99.7 percent of total transactions (compared with 77.1 percent in
2002).
Trading on the secondary market for forex-denominated government securities
edged down, the value of USD-denominated government paper (about USD 687
million) sliding to less than half of that recorded in the previous year. Bank/client
transactions dropped by 52 percent while bank/bank operations rose by 39 percent.
However, 2003 witnessed the emergence of transactions in EUR-denominated
government securities amounting to roughly EUR 26 million.

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Average Interest Rates in 2003


30

percent per annum

25
20
15
10
lending rate (for non-banks)
on interbank transactions
on government securities
deposit rate (for non-banks)

5
0
J

During 2003, the average interest rates applied by banks to non-government, nonbank clients posted fluctuations. After having dropped at a fast pace in the first half
of 2003, the average interest rate on time deposits trended upwards in the latter half
of the year, with the average interest rate on new deposits19 posting the highest
increase as a result of the 3 percentage point rise in the NBR policy rate. Due to
this development and as a direct effect of the slower annual price growth rate in the
last few months of 2003, the average interest rate on time deposits came closer to
the trajectory of the 12-month inflation rate, yet remaining below all through the
year, except for December. Given the low interest rate on time deposits in ROL and
higher household propensity for consumption, the annual real growth rate of
household savings was on the wane, falling into negative territory in December, i.e.
household savings declined by 1.8 percent at end-2003 compared with end-2002.
The average interest rate on bank loans posted divergent developments, depending
on maturity. Thus, the average interest rate on new short-term loans showed a
relatively high elasticity to the changes in the NBRs interest rate and especially to
the changes in interest rates on time deposits; by contrast, the average interest rate
on new medium- and long-term loans particularly on loans to legal entities
edged down more slowly than that on short-term loans in the first half of 2003
while towards the year-end it virtually stayed put.
By and large, the average interest rate on non-government credit balance in ROL
followed the trend in the NBR interest rates and the interest rate on time deposits,
albeit to a lower extent and at a certain time-lag, going down by 5.2 percentage
19

Starting May 2003, banks reported data on the average interest rates on new loans and deposits.

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points in 2003 H1 but increasing by 0.6 percentage points in 2003 H2. The
behaviour of lending rates had a bearing on the growth rate of non-government
credit in ROL, which accelerated following the drop in interest rates in the first half
of the year and slowed down only in August-November 2003. Loans to households
posted the largest increase, the real annual growth rate of their balance reaching a
record high of 223.2 percent in August 2003; the ensuing hike of 1.2 percentage
points in average interest rate on fresh loans resulted in the slowdown of the annual
growth rate of ROL-denominated loans to households, which reached 206.3
percent in real terms in December.
During 2003, the corridor between the average interest rate on current loans and the
average interest rate on time deposits outstanding narrowed by roughly 3
percentage points (December 2003/December 2002). The average interest rate on
NBR deposit-taking operations moved upwards within this corridor as a result of
its coming closer to the lending rate and departing from the interest rate on time
deposits.

Foreign exchange market


After six years of robust expansion in the interbank forex market, its turnover fell
to 71.6 percent share-to-GDP (compared with 77.1 percent in 2002). The main
factors inhibiting the rise in forex transactions20 were the following: (i) relative
stabilisation of money market rates; (ii) slow-in-coming growth in direct and
portfolio investment inflows and decline in the flow of medium- and long-term
financial borrowings; (iii) higher volatility and unpredictability of the USD/EUR
rate on the foreign financial markets21; (iv) reduction of the central bank
intervention in the interbank forex market.
Forex market operators increased sensitiveness to the movements of these factors
was mirrored by the relatively large monthly fluctuations in the trading volume;
thus, in 2003 H1, the monthly volumes of supply of and demand for foreign
exchange stood below the average for 2002 while July through October they
rebounded in the wake of increase in both exports and imports, slight advance in
current transfers between residents and non-residents, and expansion in financial
transactions. In the last two months of 2003, the monthly volume of the balance of
payments commercial and financial flows declined and the magnitude of the euro
movements in foreign financial markets increased, thereby depressing interbank
trading.
20

The average daily turnover dropped by 3 percent (EUR 142.5 million compared with EUR 147
million in 2002).
21
In 2003, unlike in the previous year, the EUR/USD rate posted frequent and sizeable swings (in
January the EUR/USD rate reached an average minimum value of 1.0642 while in December the
average maximum value equalled 1.2291).

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Interbank Foreign Exchange Market in 2003


200

EUR millions; daily average

EUR millions; daily data

400

150

300

100

200

50

100

-50
J F M A M J J A S O N D
total volume
NBR's purchases, net
interbank operations

-100
. J F M A M J J A S O N D
total volume
NBR's purchases, net

Lower traded volumes in the interbank forex market might be attributed in part to
the banks cautious approach for most of 2003 as reflected by their lower
propensity to engage in highly-risky speculative actions. Banks performed
operations on their behalf mostly to take advantage of the slight increase in moneymarket rates (during August-October) and restore foreign exchange positions (in
November) and only to a lesser extent, in an attempt to arbitrage the abrupt
exchange rate fluctuations (in July and August). The drop in bank-to-bank foreign
exchange operations (by 14.5 percent on the supply side and 9.6 percent on the
demand side) was accompanied by lower interbank market concentration, with five
banks making up 51.5 percent of total purchases and sales of foreign exchange
(compared with 54 percent in 2002).
Against this background, bank clients had a more salient influence on the interbank
forex market given that their supply of and demand for foreign exchange rose by
10.6 percent and 25.4 percent respectively, thus posting a development opposite to
that recorded by banks; thus, the share of bank clients transactions in total
turnover widened markedly22. Faster rise in clients demand for foreign exchange
(contributing to a quasi-permanent monthly foreign exchange deficit) reflected
widening of the trade balance, increase in payments on external private debt23 and,
occasionally, repatriation of revenues from portfolio and direct investment by nonresidents (April). In 2003, the deficit under clients transactions hit a record high of
22

In 2003, bank clients transactions accounted for 37 percent of total forex supply and 40 percent of
total demand for foreign exchange, compared with 32 percent of total supply of and demand for
foreign exchange in 2002.
23
High readings of external private debt servicing (more than EUR 200 million) in April, October,
and December were accompanied by bank clients higher demand for foreign exchange.

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EUR 1,715 million due also to the fall in individuals sales of foreign exchange
(EUR 95 million compared with EUR 143 million in 2002) that could have been
attributed to the slight drop in compensation of employees. Nevertheless, the
interbank forex market continued to be tension-free, prompted by record-high net
purchases of foreign currency by exchange bureaux (EUR 1,670 million, up EUR
174 million year on year) and by the central banks occasional supply of foreign
exchange (EUR 420 million).

Forex Market Surplus / Deficit in 2003


80

EUR millions; daily average

60
40
20
0
-20
-40
-60
-80

bought from clients

sold to clients

balance

-100
J

As a result of higher uncertainty surrounding the development of the EUR/USD


rate on world markets, forward agreements lost ground, accounting for at most 3
percent of the total forex trading, compared with 8 percent in 2002. The same as in
the case of spot transactions, forward contracts performed by banks receded;
concurrently, banks opted for longer-dated transactions, i.e. agreements with onemonth maturity, compared to 2002 when banks conducted one-week transactions.
Volumes traded via exchange bureaux reached all-time highs, with purchases
tantamount to EUR 6,014 million and sales worth EUR 4,344 million. The trend of
transactions carried out by exchange bureaux tracked closely that of current private
transfers and was also underpinned by high volatility of the EUR/USD rate and the
developments in the exchange rate of the ROL. Non-residents transactions rose
marginally, reaching EUR 223 million.
Given the relatively high unsteadiness of the forex market conditions, the central
bank had to intervene in the currency market with a view to: (i) warding off severe
imbalances in the demand/supply ratio, (ii) alleviating the impact of the EUR/USD
rate development on the exchange rate of the ROL, and (iii) replenishing foreign

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exchange reserves. Thus, in January, April, May, November, and December, the
central bank increased the supply of foreign currency while in the other months the
NBR engaged in net purchases, which damped down the real strengthening of the
ROL against the implicit currency basket. The NBRs net purchases amounted to
EUR 523.4 million24, down a massive EUR 1,367 million from 2002. The
exchange rate policy pursued by the NBR continued to attach a significant
importance to market decisions concerning the trajectory of the exchange rate of
the ROL and to be predicated on flexibility while resorting to less frequent
interventions in the currency market.
Although the EUR/USD rate posted sharp swings in 2003 and the NBR was less
active in the market, the volatility of the ROL/EUR rate lowered markedly, as a
result of the move to the euro reference and increased cautiousness of banks in
setting quotations. This behaviour was also highlighted by the development of the
average relative spread between minimum bid and maximum ask rates of banks,
which narrowed slightly year on year25. The exchange rates on display at non-bank
exchange bureaux did not post substantial swings against the exchange rate
announced by the National Bank of Romania26.
The exchange rate of the domestic currency against the euro showed sizeable
month-to-month swings in real terms (2.6 percent ROL depreciation in January and
3.6 percent strengthening in July); real depreciation of the ROL against the euro for
2003 (December/December) was slightly higher than in 2002, i.e. 3.7 percent in
2003 compared with 3 percent in 2002. Conversely, due to the easing of the US
dollar on foreign financial markets, the Romanian currency strengthened versus the
US dollar by 16.3 percent in real terms (against 10.5 percent in 2002). The
domestic currency appreciated against the currency basket27 by a real 3.3 percent28
in 2003, compared with 2.3 percent a year earlier.

24

In terms of transaction date


0.085 in 2003 versus 0.087 in 2002
26
Except for March, when exchange bureaux confirmed the major uncertainties surrounding the
short-run developments in the exchange rate of the domestic currency and their bid/ask rates saw
spreads as large as 4 percent versus the exchange rate announced by the NBR.
27
60 percent EUR, 40 percent USD
28
December/December
25

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Capital market
Performance of the capital market improved clearly over a year earlier. The
positive developments in its indicators were almost exclusively underpinned by the
fall in yields on alternative financial investments (ROL- or foreign-exchangedenominated deposits and government securities); nevertheless, the increased
potential of the market could not be fully capitalised upon, as market architecture
remained relatively rigid. The still low general awareness related to this field due
also to the delayed adoption of a legislative framework allowing the unification of
the two market segments, i.e. BSE and RASDAQ kept investors at bay. In
addition, the diversification of financial instruments unfolded at a slower than
expected pace, as government securities were still not subject to trading and fresh
opportunities only included the marginal expansion of bond dealings. On the other
hand, response to incidental factors such as the release of financial results or setting
of dividends, capital increase, stock split, was much calmer, hinting at the headway
towards the full-fledged stage of the market.
The Bucharest Stock Exchange was more active than RASDAQ in 2003 too. Thus,
the weight of capital market capitalisation in GDP added 0.6 percentage points year
on year to 10.7 percent at end-2003. By contrast, market liquidity29 fared worse
than a year earlier (down nearly 5 percentage points), due largely to worsening
RASDAQ liquidity.
In 2003, the Bucharest Stock Exchange saw a strengthening of the previous years
uptrend. Its operational parameters improved, many of them rising well above their
past performance, even though the growth rate of some indicators slowed.
The expansion in market capitalisation was not as spectacular as in previous years
in 2003, this indicator picked up 33.1 percent compared with 137.4 percent in
2002 and 250.1 percent in 2001. Thus, apart from the fact that no new issuer was
listed on the BSE, the alteration of some legislative provisions on the capital
market, namely the prohibition to increase capital based on revaluation differences
and the obligation of the major shareholder with at least 90 percent in total equity
to launch the public offering so as to fully take over the company and delist it, had
a detrimental impact on this indicator.

29

76

The ratio of turnover to market capitalisation

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Chapter 3. Monetary policy

Bucharest Stock Exchange


in 2003
ROL billions
2,000

Bucharest Stock Exchange Indexes


in 2003

points
ROL billions
200,000 2,500

1,500

150,000

1,000

100,000

500

50,000

points
10,000

2,000

7,000

1,500

4,000

0 1,000
J F MAM J J A S O N D
turnover
market capitalisation (right-side scale)

1,000
J F M A M J J A S O N D
BET index
BET-C index
BET-FI index (right-side scale)

In 2003, the average daily trade in shares and bonds increased by 47.6 percent (or
45.3 percent by leaving bonds out of account). The bonds segment witnessed a
slightly improved performance (accounting for nearly 2 percent of total turnover
compared to below one percent in 2002) owing to the launch of seven new issues
of municipal bonds (featuring larger amounts and longer maturities) and the
admission to quotation followed by trading, for the first time ever, of an issue of
corporate bonds. Nevertheless, dealings in such instruments were seldom carried
out, as their high yields encouraged investors to hold them until due date. Public
offerings provided an underpinning to market activity, taking 23 percent of total
turnover against 8.4 percent in 2002; the same factor caused turnover to hit a
record high in August30. With the average daily number of traded shares up 3
percent, the 34.6 percent decline in the average daily number of trades is indicative
of the prevailing block trades.
Investors eyed particularly the stocks included in the Banks and financial
services sector. Therefore, transfers involving FIC shares made up more than 24
percent of total turnover and those in banking shares (BRD-Groupe Socit
Gnrale and Banca Transilvania) accounted for 20 percent of the total figure31.
Large weights in market turnover held a small number of large-sized companies,
led by Petrom, Romanias oil company, and Slatina-incorporated ALRO, with 12
percent and 8 percent respectively.
30

As a result of the closure of public offerings to buy shares in two Cluj-Napoca-based companies,
i.e. Terapia and Turism Transilvania dealings in those companies accounted for 78 percent of
total turnover in August 2003.
31
Due to the dividend policy pursued by the FICs and to strengthened market shares of the two banks

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During 2003, composition of trades by sector saw little change. Banks and financial
services sector further held the largest weight in total (albeit falling from 54 percent
to 45.8 percent), ahead of Energy (whose weight was little changed), whereas the
Fast moving consumer goods sector came in third, its weight narrowing by 8.8
percentage points. By contrast, the weights of Pharmaceuticals and Raw
materials increased by 7 percentage points and 7.6 percentage points respectively.
Non-residents proved more active in 2003 in terms of both sales and purchases.
Their weight in total purchases grew by some 12 percentage points and their
weight in total sales advanced by approximately 7 percentage points. As for nonresidents composition by client, legal persons had the upper hand, whereas
individuals took a larger weight in total transactions performed by residents.
The P/E ratio32 climbed by 13.1 percent against 9.1 percent in 2002 as a result of
high investor interest in several quoted shares, entailing even their overvaluation.
Throughout the year under review, the Energy sector came first, followed by
Services and, at times, Banks and financial services.
Stock-market indexes rose to record highs, in line with the good performance of
some indexes in the region. The highest increase, i.e. 1,999 points or 33.2 percent,
experienced the BET-FI. At end-2003, the BET index displayed a lifetime high of
2,171.9 points, gaining 512.8 points, or 30.9 percent, versus end-2002, whereas the
BET-C index closed up 287.3 points, or 26 percent.

RASDAQ Market in 2003


1,200

ROL billions

ROL billions

RASDAQ Indexes in 2003


points

120,000

900

90,000

600

60,000

1,500
1,200
900
600

300

30,000

300

0
J F MAM J J A S O N D

0
J F M A M J J A S O N D

turnover
market capitalisation (right-side scale)

32

78

RASDAQ-C
RAQ I
RAQ II

Calculated as the ratio of market price to net profit per share

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Chapter 3. Monetary policy

Indicators on trading activity on RASDAQ stock-market saw uneven


developments in 2003. The average daily trade remained virtually unchanged year
on year, the average number of trades climbed 5.7 percent, the average daily
number of traded shares plunged by nearly 60 percent, while market liquidity lost
some 25 percent. Market capitalisation moved ahead roughly 30 percent, even
though the number of listed companies decreased by 381 against end-2002, hinting
at the sharp surge in quotations, with RAQ I and RAQ II indexes reaching fresh
record highs. The RASDAQ Composite put on 228.6 points, or 21.7 percent, RAQ I
jumped 272.5 points, or 28 percent, and RAQ II went up 349.9 points, or 31.7
percent. The weight of offers for sale/tender offers remained broadly unchanged
from 2002, i.e. 56 percent of total turnover, but their month-to-month
developments were uneven.

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Chapter 4. Financial stability and prudential supervision


A. The Romanian banking sector composition, performance
and risks
The advance in macrostabilisation corroborated by banks endeavours to
consolidate their position on the domestic market strengthened the stability and
soundness of the banking system. Specifically, the clean-up and strengthening of
the banking sector, initiated in 1999-2000, were fully manifest.
The strong growth of the Romanian bank market in terms of volume and
complexity of transactions required permanent improvement of supervision, which
focused on the risks incurred either directly or indirectly by banking activity.
Methods were developed to analyse banks financial performance and to correlate
their risk profile with their risk management capabilities.
The monthly analysis1 of banking system stability was supplemented by a quarterly
assessment of the vulnerabilities of the system to potential credit risk, foreign
exchange risk and interest rate risk, based on a stress test model.
In 2003, banking supervision was facilitated by an adequate legal framework that
provided the basis for regulating banks activity in compliance with the rules of
sound and cautious banking practice.

Structural changes
In 2003, the banking sector underwent no significant structural changes, yet the
expansion of the market share held by banks with majority privately-owned capital
(to 62.5 percent) was caused by the growth in bank assets, amid deposit-taking
from non-banks (23.1 percent in nominal terms) and the rise in shareholders
equity (26.2 percent). The privatisation of the biggest state-owned Romanian bank,
Banca Comercial Romn (BCR), is deemed to lead to the increase in the market
share of private banks by more than 28 percentage points. The signing of the sale
agreement, on 4 November 2003, with the EBRD and IFC was one of the major
events of 2003, given the particular significance of BCR in the Romanian banking
landscape.
Foreign capital further prevailed in the private sector, reaching 58.2 percent of the
aggregate balance sheet assets at end-2003.
1

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The removal of Banca Columna from the system, based on the final decision of the
Bucharest Law Court to open winding-up proceedings, did not cause the market
share of banks with majority foreign capital to diminish, since Banca Columna had
ceased operating as early as 1998. Yet, the bankruptcy of this bank marked the
closure of the clean-up of the banking system by concluding the process of
removing insolvent banks from the system.
The change in the shareholding of Banca Daewoo and Libra Bank following the
purchase of the majority stake owned by foreign investors (56.2 percent and 64.8
percent respectively) by Romanian legal entities entailed the rise in the market
share held by the domestic private sector (from 3.2 percent to 4.3 percent).
Table 1. Market Share of Banks and Foreign Bank Branches
- end of period -

Banks with domestic capital,


of which:
- with majority state-owned capital
- with majority private capital
Banks with majority foreign capital
I. Total commercial banks
II. Foreign bank branches
Banks with majority private capital
including foreign bank branches
Banks with majority foreign capital
including foreign bank branches
Total (I+II)

2001
ROL bn.
154,469.2

%
44.8

Net assets
2002
2003
ROL bn.
% ROL bn.
204,833.9
43.6 252,259.0

144,342.3
10,126.9
163,413.9
317,883.1

41.8
3.0
47.3
92.1

189,806.2
15,027.7
230,207.0
435,040.9

27,337.6

7.9

34,671.3

200,878.4

58.2

190,751.5 55.2
345,220.7 100.0

40.4 226,553.7
3.2 25,705.3
49 305,476.5
92.6 557,735.5
7.4

%
41.8
37.5
4.3
50.5
92.3

46,845.0

7.7

279,906.0

59.6 378,026.8

62.5

264,878.3
469,712.2

56.4 352,321.5
100.0 604,580.5

58.2
100.0

The sizeable share held by the private sector was also manifest in terms of the
capitalisation of the banking system. The weight of this sector in total aggregate
capital reached 74.3 percent following the action taken by foreign banks to
strengthen their position on the Romanian bank market and the measures taken by
the National Bank of Romania for the gradual increase in the minimum capital and
own funds requirements to ROL 370 billion (NBR Norms No. 16/2002).

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Table 2. Banks and Foreign Bank Branches as a Share in Aggregate Capital


- end of period -

2001
ROL bn.
Banks with domestic capital, of which :
- with majority state-owned capital
- with majority private capital
Banks with majority foreign capital
I. Total commercial banks
II. Foreign bank branches
Banks with majority private capital
including foreign bank branches
Banks with majority foreign capital
including foreign bank branches
Total (I+II)

Share capital/core capital


2002
2003
%
ROL bn.
%
ROL bn.

11,093.3
9,738.7
1,354.6
15,657.6
26,750.9
1,393.7

39.4
34.6
4.8
55.6
95.0
5.0

12,069.3
10,273.0
1,796.3
19,879.1
31,948.4
2,422.2

35.1
29.9
5.2
57.8
92.9
7.1

13,477.0
10,273.0
3,204.0
23,270.7
36,747.7
3,222.4

33.7
25.7
8.0
58.2
91.9
8.1

18,405.9

65.4

24,097.6

70.1

29,697.1

74.3

17,051.3 60.6
28,144.6 100.0

22,301.3 64.9
34,370.6 100.0

26,493.1 66.3
39,970.1 100.0

The main feature of the Romanian banking system was still its concentration, with
five banks (BCR, BRD-Groupe Socit Gnrale, Raiffeisen Bank, CEC and ABN
Amro Bank) holding 61.7 percent of total assets, 56.8 percent of total loans and
62.6 percent of total deposits at end-2003. Nevertheless, the entry on the Romanian
market of some leading foreign banks and the clean-up of the banking sector stirred
up keen competition between banks. In this context, the last three years saw a new
trend, market shares held by domestic banks contracting in favour of foreign banks.
Once the bank market has become fully-fledged, its concentration will change too,
as keener competition requires alterations in the strategy of small- and mediumsized banks possible mergers or acquisitions so that they should be able to
increase their capital to a reasonable level without major shocks. An alternative for
these banks to maintain their viability could be the concentration on specialised
products or certain market segments.
Of the 40 countries holding participations in the capital of Romanian credit
institutions at end-2003, the top three were Austria (21.5 percent of total capital),
Greece (11.1 percent) and France (5.9 percent).

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Table 3. Foreign Participations in the Share Capital of Banks in Romania


Country

Austria

Greece

France

Italy

Netherlands

USA

Turkey

Monaco

Germany

Switzerland

Other

National Bank of Romania

Period

2000
2001
2002
2003
2000
2001
2002
2003
2000
2001
2002
2003
2000
2001
2002
2003
2000
2001
2002
2003
2000
2001
2002
2003
2000
2001
2002
2003
2000
2001
2002
2003
2000
2001
2002
2003
2000
2001
2002
2003
2000
2001
2002
2003

Foreign participation
Share
Share
in total foreign private
in total capital
capital
(%)
(%)
7.84
3.16
39.47
20.98
42.95
23.97
37.02
21.54
20.91
8.45
11.14
5.92
14.53
8.11
18.99
11.05
16.93
6.84
6.33
3.37
10.08
5.63
10.11
5.88
0.88
0.35
1.97
1.05
4.84
2.70
7.91
4.60
7.76
3.14
15.05
8.00
6.19
3.45
7.67
4.46
11.52
4.65
8.20
4.36
6.95
3.88
5.66
3.29
15.83
6.39
7.47
3.97
3.36
1.88
2.28
1.33
2.66
1.07
1.01
0.53
1.11
0.62
1.73
1.01
0.58
0.23
0.18
0.10
1.13
0.63
1.43
0.83
1.77
0.71
0.08
0.04
1.17
0.65
1.40
0.81
13.33
5.39
9.09
4.87
7.68
4.29
5.81
3.39

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The structural changes reshaped the configuration of the banking system in terms
of the number of banks and their distribution. Specifically, at end-2003, the
Romanian banking system comprised 38 credit institutions, among which stateowned banks (3), subsidiaries (15) and branches (8) of foreign banks, banks with
domestic private capital (6) and banks with foreign capital (6). The first network of
credit co-operatives Creditcoop was also included in the banking system.
Table 4. Banks Operating in Romania by Ownership
number of banks, end of period

Banks, of which :
Fully or majority state-owned
capital, of which :
- fully state-owned capital
- majority state-owned capital
Majority private capital,
of which :
- majority domestic capital
- majority foreign capital
Foreign bank branches
Total

1995 1996 1997 1998 1999 2000 2001 2002 2003


24
31
33
36 34
33
33
31
30
7

6
17

6
24

6
26

6
29

3
30

3
29

2
30

2
28

2
27

9
8
7
31

14
10
9
40

13
13
10
43

13
16
9
45

11
19
7
41

8
21
8
41

6
24
8
41

4
24
8
39

6
21
8
38

Performance and risks


Banking activity stuck to the strong upward trend for the third consecutive year
amid the measures taken by the National Bank of Romania for the restructuring of
the banking sector starting 1999 and the improvement of the macroeconomic
environment. The dynamics of the Romanian bank market was bolstered chiefly by
non-government credit, whose growth rate in 2003 (69.5 percent in nominal terms,
48.5 percent in real terms) was higher than in 2002.
Household credit saw the sharpest expansion, with a growth rate exceeding by far
that recorded by the corporate sector (214.6 percent in real terms as compared to
24.6 percent). The twofold increase in the share of retail banking (to 24.8 percent
in December 2003) was attributable to the higher attractiveness and diversification
of bank products as well as to the larger household demand for consumer credit and
real estate loans.
Although household credit had a large contribution to the expansion of credit
market, past-due claims on individuals held a small share in both volume of nongovernment credit (0.1 percent at end-2003) and volume of household credit (0.6

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percent). In fact, the total volume of overdue and doubtful loans further displayed a
less-than-one-percent weight (0.3 percent) in non-government credit (net).
The extremely swift growth in household credit had a positive impact on the banking
system, mainly regarding diversification of risks, which had been almost exclusively
concentrated in the corporate sector until 2003, and the improvement in the
awareness of the public, which started to see banks as reliable partners. However, the
high growth rate of lending to households might pose some prudential risks.
The need to create an infrastructure for medium- and long-term lending led to a
change in the term structure of loans. The reference period witnessed the extension
of loan maturity as reflected by the faster-paced real growth of long-term loans
(148.4 percent) and medium-term loans (115.9 percent) as compared to that of
short-term loans (10.8 percent), which were still prevalent (49.5 percent). The large
share of short-term loans influenced the composition of assets in terms of liquidity,
liquid assets accounting for 82 percent. The coverage of loans to non-banks with
deposits taken from them fluctuated in the range from 60 percent to 70 percent,
showing an acceptable exposure to liquidity risk at year-end 2003.
Although the composition of loans by recipient differs from one bank to another, at
the aggregate level, industry and services were the main recipients of bank loans,
these sectors2 accounting for 42 percent and 38 percent respectively given their
weight in the economy. Loans for working capital held 47 percent in total,
followed by loans for equipment purchase (17 percent).
The speed-up in lending also impacted the aggregate financial result of 2003 (ROL
13,290.5 billion), higher than that of 2002 (ROL 12,498.1 billion), with net interest
income holding the largest share. The slower rise in the aggregate net profit of
2003 (6.3 percent) as compared to that of 2002 (18.7 percent) was induced by the
contraction of the spread of interest rates on operations with non-government nonbank clients (from 17.6 percentage points to 14.7 percentage points amid keener
competition on the credit market), by the larger provisioning expenses (up 50.6
percent as compared to the prior year, following the coming into force, on 1
January 2003, of the new methodology for loan provisioning), and by infrastructure
investment made by most banks.
Nevertheless, the two profitability indicators (ROA and ROE)3 were on the rise
(the former from 1.2 percent in January to 2.2 percent in December and the latter
from 8.4 percent to 15.6 percent) following the enforcement of the new regulation
on loan classification and provisioning; at year-end 2003 the levels of the two
2
3

Source: Credit Information Bureau which registers only loans in excess of ROL 200 million.
Foreign bank branches excluded

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indicators were close to those recorded a year earlier (2.6 percent and 18.3 percent
respectively).
Table 5. Key Prudential Indicators
Indicator
Solvency ratio 1 (>12%)
Solvency ratio 2 (>8%)
Leverage ratio (Shareholders' equity / Total assets)

- percent 1998 1999 2000 2001 2002 2003


10.2 17.9 23.8 28.8 25.0 21.2
15.8 18.9 26.2 22.9 18.2
6.1 7.5 8.6 12.1 11.6 10.9

Doubtful and overdue loans / Total loans (net)*

0.6 0.7 0.4 0.3


Doubtful and past-due claims / Total assets (net)
14.5 2.4 0.3 0.3 0.2 0.2
Doubtful and past-due claims (net) /
Equity (from prudential report on own funds)
253.6 31.2 3.3 2.7 2.0 2.0
Total doubtful and past-due claims (net) / Liabilities
16.2 2.6 0.3 0.4 0.3 0.26
Credit risk ratio (unadjusted exposure from loans and related
interest under "doubtful" and "loss" / Total loans and related
58.5 35.4 3.8 2.5 1.1 3.4
interest, except off-balance-sheet items)
General risk ratio
53.5 40.7 38.7 39.7 42.9 50.5
ROA (Net income / Total assets)
0.1 -1.5 1.5 3.1 2.6 2.2
ROE (Net income / Total equity)
1.0 -15.3 12.5 21.8 18.3 15.6
* The indicator was calculated based on NBR Circular No. 6/2000, effective since January 2000

The favourable trends of the main indicators for assessing the soundness of the
banking system were also pointed out by World Bank, IMF and European
Commission officials in the reports drawn up on the occasion of the missions to
assess the financial system (FSAP4 and Peer review). According to these
assessments, the banking system enjoys good capitalisation, high liquidity and
good supervision, the supervisory authority benefiting from adequate
administrative capacity, skilled staff and quality management. According to the
assessment made by World Bank and IMF experts during the missions using the
stress test model, the banking system was found to be resilient to potential market
risk and credit risk, exposure to currency risk and interest rate risk showing low
levels, with banks balancing their net foreign exchange position and using floating
interest rates on loans. The growth in lending did not weaken the soundness of the
banking system, as the performance of prudential indicators high solvency ratio
(about 20 percent), high liquidity (over 3), manageable level of bad loans (below
1 percent of banks loan portfolio) illustrated considerable resilience to shocks.

The Financial Sector Assessment Program (FSAP) focuses on supporting the countries to identify
and correct the vulnerabilities of the financial sector in order to increase its resilience to
macroeconomic shocks.

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Measures taken to withstand potential banking risk


In 2003, the National Bank of Romania, in its capacity of supervisory authority for
the banking system, strove to strike a balance between two potentially conflicting
objectives:

on the one hand, keeping up the high growth rate of bank intermediation to
ensure the narrowing of the gap separating Romania from the EU member
states in terms of this indicator. Thus, loans to non-banks expanded by a real
48.5 percent;

on the other hand, maintaining the financial soundness of the banking system
with a view to ensuring sustainable long-term growth. Aggregate prudential
indicators stuck to acceptable levels according to international standards amid
measures taken in the field of regulation and prudential supervision and the
responsible behaviour of shareholders and managers of credit institutions.

The measures taken by the supervisory authority in the prior years and the
substantial improvement in the quality of the shareholders and bank managers
caused the number of bank frauds to plummet in 2003, which further improved the
public perception of the banking system. However, in 2003 too, strengthening of
banking system credibility was undermined by further political interference in the
winding-up of Banca Internaional a Religiilor (BIR). The chairman of the
Commission for the Investigation of Abuse, Corrupt Practices and for Petitions
attached to the Chamber of Deputies, who had initiated a so-called inquiry on the
bankruptcy of BIR unauthorised by the Chamber and had repeatedly required,
disregarding legal provisions, the discontinuance of winding-up proceedings,
continued his attacks on the NBR executive management. These attacks, based on
biased, incomplete or fake information, are capable of misleading the public as
regards the real cause for the banks going bankrupt, namely reckless lending
corroborated by shareholders ineffective control over the banks management and
of raising suspicion about the real commitment of the authorities to bank
restructuring.
The identification of the possible flaws in commercial banks management of the
main banking risks (credit risk, liquidity risk, market risk, operational risk,
reputational risk) was a major concern of the supervisory authority. To this end, the
legal framework for the organization of activity and the internal control system of
banks, the management of significant risks and the organization and functioning of
the internal audit departments of banks was regulated by NBR Norms No. 17/2003;
the legal framework for the containment of risks attached to consumer and
mortgage loans was regulated by NBR Norms Nos. 15/2003 and 16/2003
respectively.

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The enforcement of regulations on know-your-customer standards (NBR Norms


No. 3/2002, as amended and supplemented subsequently) and those on loan
classification and provisioning (NBR Regulation No. 5/2002, as amended and
supplemented subsequently) played a major role in preserving the safety and
soundness of the banking system by introducing more exacting requirements.
The National Bank of Romania strove to focus on-site inspections on assessing
banking risk. In this context, the supervisory authority kept a close eye on the
banks for which lending has become a priority, monitoring in particular the
composition and quality of the loan portfolio as well as of related collateral. In this
vein, notification letters were sent to the banks that posted high growth rates of
lending or large loan shares in total assets, and more frequent talks with the
executive management of those banks were held.
In the reference period, supervision materialised in 74 on-site inspections at the
banks head offices, of which 39 were mandatory annual inspections, conducted in
compliance with the schedule approved by the NBR Board, and 35 were thematic
inspections (that focused on the discrepancies in the reports submitted by banks,
the progress made by banks in implementing the remedial measures agreed upon
during the prior inspections or the verification of the complaints filed by clients or
other bodies of the State such as Police, Prosecutors Office, etc.).
In 2003, the findings of on- and off-site inspections were included in 66
notification and observation letters (aimed chiefly at the banks submitting to the
National Bank of Romania their internal regulations brought in line with the new
regulation on loan classification, at presenting the strategy to fulfil the minimum
capital and own funds requirements, foreign exchange position, liquidity, required
reserves, average position on the money market, large exposures to a single
debtor). As a result, sanctions and measures were taken in the case of 25 banks and
5 foreign bank branches, where the severe deficiencies found required such actions.
Other measures destined to improve supervision consisted in the purchase of new
IT applications (software) for the development of the present system of off-site
monitoring of banking risks, the inclusion of a new component in the CAMEL (S)
assessment sensitivity to market developments , as well as the improvement of
the early warning system under programmes with PHARE assistance, which are
under way.
As observance of know-your-customer standards has become imperative for
mitigating the risks faced by banks and reducing the time period for granting loans,
the National Bank of Romania supported the initiative of the Romanian Banking
Association to set up a Credit Bureau. The institution will operate as a private

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entity of public interest, dealing with collecting a large volume of information on


individuals and small- and medium-sized enterprises that are potential bank clients.
The development of the banking culture of the public, by providing information on
the risks it may face when choosing a certain bank or banking product, also had a
positive impact on lending.
Moreover, particular attention is attached to the training of loan officers, chiefly as
regards credit risk and mortgage loans.

Improvement of some instruments providing indirect support


to banking supervision
The Bank Deposit Guarantee Fund further paid compensations to depositors of
the banks declared insolvent. In April 2003, the Fund ended the period for the
payment of compensations to Bankcoop depositors and in October 2003 to
depositors of Banca Internaional a Religiilor. The payment of compensations has
been under way for depositors of Banca Romn de Scont, Banca Turco-Romn
and Banca Columna. Out of ROL 5,184 billion worth of compensations due, by
year-end 2003 the Fund handed out compensations worth ROL 5,120 billion,
accounting for 98.8 percent of total payment obligations. In 2003, compensations
paid amounted to ROL 7.8 billion.
The Fund extended its scope of activity in 2002, being appointed as official
receiver of the banks declared bankrupt, namely Banca Romn de Scont and
Banca Turco-Romn. The amount retrieved by year-end 2003 from the bankrupt
banks totalled ROL 1,320.5 billion (25.4 percent of the Funds nominal claim), of
which ROL 150.3 billion in 2003.
Credit Information Bureau (CIB)
In 2003, the National Bank of Romania continued to urge credit institutions to
interrogate the database of the Credit Information Bureau (CIB) more frequently
and even required that the lending norms issued by each credit institution should
include this obligation.
As a result, resort to this instrument increased considerably. During 2003, credit
institutions sent 404,875 queries to the CIB database (as compared to only 131,897
in 2002), of which 362,665 (89.6 percent) with the assent of potential debtors. The
queries focused on debtors overall risk, loans and past-due debts. The share of
new debtors for which authorised queries were sent reached about 80 percent in
December 2003 as compared to 56 percent a year earlier. The higher number of

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queries to the CIB database contributed to ensuring the quality of banks loan
portfolio, amid lending posting fast-paced growth.
The number of debtors and loans entered into the CIB database rose almost five
times in four years of operation, and the amounts due increased more than six
times. By maintaining the reporting level at ROL 200 million, the CIB database
stores information on almost 81.6 percent of bank loans, share which is on the
wane due to the boom in consumer credit.
In 2003, the National Bank of Romania initiated a project to amend Regulation No.
1/1999 on the organisation and functioning of the Credit Information Bureau
within the National Bank of Romania, as amended and supplemented subsequently.
The main alteration to this Regulation consists in enlarging the CIB database by
including new information on banking risk which refers to:

groups of debtors evidenced by credit institutions;

card frauds committed by cardholders;

delays longer than 30 days in loan repayment by individuals;

loans to non-resident non-bank legal entities, which are not included in the CIB
database.

The new Regulation aims at integrating information in the Payment Incident


Bureau database with that provided by the Credit Information Bureau in order to
supply data on: the number of incidents by payment instrument (major incidents
are shown separately) and the entire period of being under a ban.
Payment Incident Bureau (PIB)
The analysis of the PIB database shows that the number of payment incidents and
holders that generated them kept increasing, albeit at a slower pace, which means
that this instrument is becoming effective in strengthening discipline related to
payment instruments. The number of accountholders moved up 2.7 percent in 2003
as compared to 4.2 percent in 2002; the number of instruments rejected for
payment rose by 6 percent in 2003 as compared to 16.5 percent a year earlier; the
value of amounts rejected grew by 15 percent in 2003 as compared to 41 percent in
2002. On this background, in compliance with its powers, the National Bank of
Romania took several measures to increase the role of the PIB in preventing
payment incidents and to ensure the strict enforcement by banks of NBR Norms
No. 3/2002 on know-your-customer standards. As a result, 841,925 database
queries were recorded in 2003 as compared to 382,005 a year earlier, which were
made by banks for own account or for account of clients.

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The National Bank of Romania considers that correct and timely information can
put a brake on frauds with payment instruments and can remove from the business
landscape the persons that elude the laws in force, thereby producing major losses
to their business partners.

B. Agreements on financial stability and prudential supervision


The banking sector further held the leading position on the financial market with a
share of aggregate assets of about 33 percent of 2003 GDP, its development
placing it ahead of other segments (capital market and insurance market). The
implications of the banking sectors leading position, corroborated by the
diversification of the financial institutions and products, the larger market and the
requirements pertaining to its integration into the global market increased the
responsibilities of the National Bank of Romania as the authority in the field of
banking regulation and supervision.
Greater efforts were made to improve co-operation between the supervisory
authorities of the Romanian financial market with a view to rendering this activity
more efficient and to securing the sound development of all financial system
segments. The co-operation with the other two supervisory authorities, the
National Securities and Exchange Commission and the Insurance Supervisory
Commission, was sealed by the signing of a protocol on 3 April 2002.
To prevent the boom in lending from affecting other sectors, the National Bank of
Romania has collaborated with the Insurance Supervisory Commission, suggesting
the latter to issue norms binding on insurance companies to reinsure, either on the
domestic or external market, a significant percentage of the exposure arising from
the insurance of credit risk. Subsequently, the Insurance Supervisory Commission
issued norms on containing underwriting of risks attached to consumer and
mortgage loans that entered into force on 30 March 2004.
The National Bank of Romania was deeply involved in prompting banks to issue
bonds on the capital market as credit institutions resort to alternative financing
sources is beneficial for the banking sector as well as for the capitalisation and
liquidity of the capital market; for such an endeavour to be successful, the National
Bank of Romania co-operated with the National Securities and Exchange
Commission and the Bucharest Stock Exchange. The National Bank of Romanias
initiative paid off, as in the first half of 2004 two Romanian banks issued such
bonds in amount of ROL 1,880 billion.
Externally, negotiations were sped up to conclude agreements on the exchange of
information in the area of banking supervision with the competent authorities in the

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countries of origin of banks that have branches, subsidiaries or representative


offices in Romania. By year-end 2003, co-operation agreements were concluded
with six supervisory authorities (National Bank of Moldova, Regulatory and
Supervisory Agency in Turkey, Central Bank of Cyprus, Banca dItalia, Bank of
Greece and Federal Financial Supervisory Authority in Germany)5 and negotiations
with other three authorities (De Nederlandsche Bank, Die Oesterreichische
Nationalbank and Commission Bancaire in France) are under way.

C. Licensing and regulation of credit institutions


A strategic objective of the NBR in the field of strengthening the banking system
was to ensure a strong shareholding able to exert efficient control over bank
management with a view to securing the swift development of banks. This
objective also envisaged licensing of new credit institutions.

Licensing of banks Romanian legal entities


In 2003, a licensing application was filed with the National Bank of Romania by a
bank Romanian legal entity whose founders were five legal entities registered in
the Cayman Islands and Cyprus. As legal requirements relative to the founders and
managers of the bank could not be fulfilled, the representatives of the founders
withdrew the licensing application.

Licensing of savings banks for housing Romanian legal entities


In September 2003, in virtue of Law No. 541/2002 on collective saving and lending
for housing and NBR Norms No. 4/2003 on licensing savings banks for housing, the
first institution of this type applied for being licensed by the National Bank of
Romania.
Pursuant to Law No. 485/2003 amending and supplementing Law No. 58/1998
The Banking Act, as subsequently amended and supplemented, the licensing
application was withdrawn by the founders in order to supplement the
documentation and reapply for the licence.
On 1 April 2004, Raiffeisen Bank Bausparkasse Romania joint-stock company
obtained the incorporation licence and filed the application with the National Bank
of Romania, accompanied by the related documentation, with a view to obtain the
licence, which was granted on 31 May 2004.

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Co-operation agreements with the last two authorities were concluded in 2003.

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Licensing of credit co-operatives


In 2003, the number of credit co-operatives affiliated to the Creditcoop Central
House (the only licensed network) rose by 17 to 565. Starting with the licensing
date, these credit co-operatives have been subject to the supervision by the
National Bank of Romania and have been governed by the provisions of
Government Emergency Ordinance No. 97/2000 on the organisation of credit cooperatives, approved by Law No. 200/2002, and by NBR Norms issued in
pursuance of the said Ordinance. At present, the licensed credit co-operatives are
also covered by the deposit-guarantee scheme.
The National Bank of Romania rejected the licensing applications filed by
Concordia Romn, Aurora Romn, and Creditul Romnesc in virtue of Art. 146
of Government Emergency Ordinance No. 97/2000 on credit co-operatives,
approved by Law No. 200/2002, as well as the complaints against the respective
decision. The three above-mentioned networks of credit co-operatives still have the
possibility to reorganise their business and reapply for the license according to the
provisions of Law No. 122/2004, provided they fulfil the requirements of the
legislation in force.

Regulation
In the process of Romanias accession to the EU, the National Bank of Romania
gave particular attention to the transposition of the acquis communautaire relevant
to the banking sector into the national legislation, a process which is nearing
completion.
The enforcement of Law No. 485/2003 amending and supplementing Law No.
58/1998 The Banking Act envisaged, on the one hand, the full approximation of
national legislation and EU Directives and, on the other hand, the solving of some
aspects insufficiently regulated, in line with the European legislation and practices.
The main amendments in relation to the first objective are the following:

establishing the scope of the term credit institution and limiting the
incorporation of credit institutions within the present legislative framework;

including electronic money institutions in the category of credit institutions and


the regulation of their incorporation and functioning;

putting in place the legal framework to ensure freedom of establishment and


freedom to provide services by credit institutions in the EU member states on
the principle of a sole licence acknowledged by the European Community as
well as implementation of the principle regarding supervision of credit

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institutions by the competent authority in the country of origin;

establishing the activities to be carried out by credit institutions based on


mutual recognition;

setting the powers of the National Bank of Romania in relation to supervision


on a consolidated basis;

introducing some provisions on the acknowledgement of bilateral netting


agreements by the National Bank of Romania for certain categories of
operations and, in this context, the introduction of a new general provision
stipulating that the opening of the proceedings on reorganisation, winding-up
or other such proceedings in respect of one of the contracting parties shall not
affect the validity of such agreements;

raising the threshold beyond which a person becomes a significant shareholder


from 5 percent to 10 percent of share capital, establishing the subsequent
thresholds for which the intention to acquire a participation (20 percent, 33
percent, 50 percent) is to be notified and replacing the prior approval procedure
by the notification procedure;

increasing the ceiling on investment in non-financial entities from 10 percent to


15 percent of the banks own funds and of the overall limit for such investment
made by a bank from 50 percent to 60 percent of the banks own funds;

introducing provisions regarding the co-operation between the National Bank


of Romania and the competent authorities in the EU member states and the
requirements to notify them and/or the European Commission;

defining the terminology required for the implementation of EU Directives and


for achieving supervision on a consolidated basis.

With a view to dealing with the insufficiently regulated aspects of the Romanian
banking legislation, the following measures were taken:

94

introduction of provisions to ensure an adequate legal framework for the


National Bank of Romania to issue regulations on internal control in keeping
with the Basle Committee principles in the field;

rendering provisions on professional secrecy more flexible;

creating conditions for the implementation of the Principles underlying the


organisation and functioning of payment systems acknowledged by the Basle
Committee;

introduction of provisions vesting the National Bank of Romania with the


power to determine whether an activity consists in taking deposits or other
redeemable funds from the public, banking activity, issue of electronic money
or it consists in taking and/or management of amounts of money arising from

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partnership with a view to collective saving and lending, the National Bank of
Romanias decision in such cases being mandatory for the interested parties;

introduction of some provisions on sanctioning legal and other entities which,


without being licensed by the National Bank of Romania, take deposits or other
redeemable funds from the public or take and/or manage amounts of money
arising from partnership with a view to collective saving and lending;

regulation of the regime of banks whose licence was withdrawn (in other cases
than upon request, in case of winding-up or merger/split-up) by introducing
new provisions on their mandatory dissolution and winding-up and a chapter
on winding-up;

restructuring and supplementation of the section on special administration in


order to clearly state the responsibilities of the special administrator and the
supplementation of instances where this measure can be taken with the instance
where the bank no longer has any Board member or manager.

The full transposition of the acquis communautaire relevant to the banking sector
will be implemented by the central bank by means of secondary legislation, in
compliance with the commitments assumed in the Position Paper on Chapter 3
Freedom to provide services.
In this respect, the National Bank of Romania already issued a set of regulations in
2003.
Norms No. 11/2003 on supervision of own funds on a consolidated and on an
unconsolidated basis:

establish the regulatory and supervisory framework of own funds applicable to


banks, Romanian legal entities, saving banks for housing and electronic money
institutions;

harmonise provisions in the field with provisions of Directive 12/2000/EC;

set the general principles for calculating own funds on a consolidated basis,
applicable starting 1 January 2005;

ensure the flexibility and restructuring of the regulatory framework in the field
by removing any explicit connection with the Chart of Accounts and by
stipulating the requirements for initial capital and own funds applicable to
credit institutions other than credit co-operatives.

Norms No. 12/2003 on supervision of solvency and large exposures of credit


institutions ensure full harmonisation with the provisions of Directive 12/2000/EC
on supervision on a consolidated and on an unconsolidated basis of solvency and

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large exposures of credit institutions as well as with the provisions acknowledging


agreements on bilateral netting of mutual claims and liabilities arising from
interest-rate and foreign-exchange contracts and similar operations with gold.
Norms No. 14/2003 on the investment that can be made by electronic money
institutions contain the investment of these entities to certain classes of assets,
bearing low credit risk and sufficiently liquid in order to ensure the smooth
functioning of the system and to protect electronic money holders.
Norms No. 17/2003 on the organisation and internal control of credit institutions
and management of significant risks as well as organisation of internal audit of
credit institutions set forth the minimum requirements for the regulated activities
and are applicable to credit institutions, Romanian legal entities. These institutions
shall implement the said norms in an adequate manner at the level of both entities
included in their consolidation scope and ancillary banking services undertakings.
NBR Norms No. 4/2003 on saving banks for housing and NBR Norms No. 5/2003
on specific conditions regarding the functioning of saving banks for housing put in
place the licensing and operational framework for this type of dedicated credit
institutions.
One of the National Bank of Romanias steady concerns is the harmonisation of the
regulatory framework for accounting of credit institutions with similar provisions
in the EU as well as with International Financial Reporting Standards.
To achieve the said objectives, the central bank recommended the establishment of
a Joint Commission to deal with accounting issues of credit institutions, comprising
representatives of leading credit institutions, the main audit firms operating in
Romania, the Ministry of Public Finance and the National Bank of Romania.
The aim of the commission is to analyse and duly solve the problems arising from
the implementation of Accounting Regulations harmonised with Directive
86/635/EEC and the International Accounting Standards, approved by Order No.
1982/5/2001 issued by the Minister of Public Finance and the Governor of the
National Bank of Romania (called Harmonised Accounting Regulations).
The Commission carries out its activity by working groups, each group having
clear-cut and specific objectives and responsibilities. The Commission was
established and became operational in March 2003 and it devised several projects
addressing problems relative to the International Accounting Standards specific for
credit institutions, namely IAS 21, IAS 32, IAS 37, IAS 39, and provided solutions
to problems arising from the enforcement of Harmonised Accounting Regulations

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and International Accounting Standards, intended to facilitate the understanding of


the concepts, principles and the overall issues in relation to International
Accounting Standards by applying professional judgement.
Starting with 2003 financial year, all credit institutions had to draw up financial
statements in compliance with the Harmonised Accounting Regulations, several
pieces of legislation being adopted for their appropriate enforcement.
Specifically, Order No. 188/1/2003 issued by the Minister of Public Finance and
the Governor of the National Bank of Romania amended and supplemented the
Chart of Accounts applicable to credit institutions as well as the methodological
norms for its application.
In December 2003, a bill was prepared to amend and supplement some accounting
regulations applicable to credit institutions, which materialised in the issue of
Order No. 263/2/2004 of the Minister of Public Finance and the Governor of the
National Bank of Romania. The Order provides, among others, solutions and
provisions regarding the drawing up of the annual financial statements as well as
the compulsory preparation, starting with 2005, of financial statements by credit
institutions in compliance with International Financial Reporting Standards.
With a view to ensuring statistical information relative to the periodical financial
statements of credit institutions, Order No. 999/3/2003 was issued by the Minister
of Public Finance and the Governor of the National Bank of Romania for the
approval of the Semi-annual accounting reporting system for credit institutions,
similar to that required by the Ministry of Public Finance from economic agents,
other than credit institutions.
In order to collect detailed information on the financial standing of each credit
institution applying the Harmonised Accounting Regulations and thus to allow the
National Bank of Romania to carry out its supervisory activity and compile
monetary statistics, Order No. 2/2003 was issued by the Governor of the National
Bank of Romania on approving the Periodical financial statement models and
methodological norms for their preparation and application for credit institutions
that are subject to the Harmonised Accounting Regulations.
In 2003, the National Bank of Romania further fulfilled the commitments assumed
in the National Programme for the Accession of Romania to the EU as regards the
completion of liberalisation of foreign exchange capital transactions by the
accession date. Therefore, starting 1 January 2003, the following transactions were
no longer subject to NBR licensing: (i) residents operations in securities and units
of foreign collective investment undertakings; (ii) short-term financial loans and

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credits granted by non-residents to residents; (iii) financial loans and credits and
personal loans granted by residents to non-residents; and (iv) sureties, other
guarantees granted by residents to non-residents.
The measures taken by the National Bank of Romania regarding liberalisation of
capital movements, which translated into the successive amendments to Regulation
No. 3/1997 on performing foreign currency operations, yielded significant results
particularly after the abrogation, in February 2003, of Government Ordinance No.
18/1994 on the measures taken to strengthen corporate financial discipline. This
made possible, by the issue of Circular No. 5/2003 amending and supplementing
the Regulation on performing foreign currency operations, the abrogation of Norms
on the use of the printed forms Foreign exchange external payment order and
Application for opening letter of credit NRV 8, of Norms on foreign exchange
control over receipts from exports and other foreign operations NRV 9 and of
some provisions of Norms on external payments for merchandise imports, works
and provision of services NRV 4, which allowed the removal of administrative
barriers in the field and rendered the regulatory framework applicable to capital
movements more flexible.
For the purpose of liberalising foreign currency operations and harmonising the
legislative framework, the National Bank of Romania issued Circular No. 31/2003
on amending and supplementing NBR Regulation No. 3/1997 on foreign currency
operations, as subsequently amended and supplemented. The Circular regulates the
access of mortgage loan companies to the interbank foreign exchange market to
buy foreign exchange with a view to granting mortgage loans to residents, natural
or legal entities, as well as the purchase of foreign exchange by residents (mortgage
loan recipients) in case they do not hold money in their bank accounts for
repayments of foreign exchange loans granted by mortgage loan companies. The
Circular sets the minimum requirements for foreign currency liquidities for
exchange houses at the equivalent of EUR 75,000.
As for the commitment assumed by Romania regarding the liberalisation of
operations in deposit accounts in ROL opened by non-residents with credit
institutions in Romania, starting 1 January 2004, mention should be made that the
transposition delay of about one year was due mainly to the forecasts resulting
from the analyses of the impact on the money and foreign exchange markets in
Romania, which showed that the high differential between interests on the
domestic and foreign markets could generate significant speculative inflows that
may be hard to control. Actually, such operations have a similar impact as
operations effected directly in the money market, which are due for liberalisation
by the date of Romanias accession to the EU at the latest. In this context, the
National Bank of Romania issued Circular No. 39/2003 amending and

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supplementing Circular No. 26/2001 amending and supplementing Regulation No.


3/1997 on foreign currency operations, as subsequently amended and
supplemented, whereby the liberalisation of operations in deposit accounts in ROL
opened by non-residents was postponed for 10 April 2005, when a new
postponement will be taken into account only after consultation with the European
Commission, if need be.
As a result of last years developments in the field of harmonising the legislative
framework in keeping with the commitments on liberalisation of capital
movements, in compliance with the calendar set by the Position Paper on Chapter 4
Free movement of capital, of the need to get in line with the EU legislation and
practice and of the latest changes in the Romanian legislation on financial and
foreign exchange discipline, a new regulation on performing foreign currency
operations, which is more flexible, easier to apply and comprises only general rules
and principles for the performance of foreign currency operations was prepared in
2003. In preparing this piece of legislation the following aspects were considered:

furtherance of liberalisation of capital foreign currency operations;

removal from the regulation of the methodology on monitoring and turning to


account of the information on foreign currency operations and foreign
exchange transactions, concurrently with devising separate statistical and
reporting norms;

improving the part referring to the meaning of some definitions and terms as
well as to some categories relative to capital foreign currency operations, so
that full harmonisation with Directive 88/361/EC on liberalisation of capital
movements should be achieved and any interpretation should be avoided;

full restructuring of the content of the regulation for a better


understanding/enforcement by the entities performing foreign currency
operations. Thus, only the situations/operations/elements that require
regulation were taken into consideration namely: definition of terms and
expressions; classification of foreign currency operations; setting specific rules
for the performance of foreign currency operations between residents and nonresidents as well as between residents; setting general rules regarding the
performance of foreign currency operations; regulation of operations on the
forex market;

removal from the norms relative to the regulation on performing foreign


currency operations of some provisions that should be regulated by norms
issued by credit institutions or that are acknowledged and accepted in banking
as international rules and practices;

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some foreign currency operations are no longer subject to licensing and the
documentation and licensing procedure are simplified.

The new regulation, approved by the NBR Board at the end of 2003, was published
in Monitorul Oficial al Romniei No. 117/10 February 2004 and entered into force
on 10 April 2004.
The short-term objectives pursued by the central bank in the field of regulation are
the following:

100

supplementation of the regulatory framework in order to implement the


supervision on a consolidated basis of credit institutions;

creation, in the first half of 2004, of the regulatory framework for market risk,
applicable to credit institutions, by transposing the provisions of Directive
93/6/EEC on capital adequacy; the objective represents a priority given the
imminent changes in the capital market legislation regarding the permission
granted to banks to directly perform operations on this market;

setting the legislative framework for the amendment of Harmonised


Accounting Regulations with a view to transposing into the national
accounting regulations applicable to credit institutions the changes in the
European accounting directives, namely the provisions of Directive
2001/65/EC which amends the provisions of Directive 86/635/EEC on annual
accounts and consolidated accounts of banks and other financial institutions;

ensuring conditions for the adequate implementation by credit institutions of


the provisions of Harmonised Accounting Regulations and International
Financial Reporting Standards, by amending and supplementing the legislation
in force, with the respective institutions applying all the provisions of
International Financial Reporting Standards starting with 2005 financial year.

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Table 6. Net Assets and Own Funds as at 31 December 2003

Net assets
1
1. Banks with majority domestic capital
of which:
1.1 State-owned banks, of which :
1.1.1 Banks with fully state-owned capital:
1. Casa de Economii i Consemnaiuni
1.1.2 Banks with majority state-owned capital:
1. Banca Comercial Romn
2. Eximbank
1.2 Banks with majority private capital,
of which:
1. Banca Transilvania
2. Romexterra
3. Banca Comercial Carpatica
4. Mindbank
5. Banca Daewoo
6. Libra Bank
2. Banks with majority foreign capital,
of which:
1. Banca Romn pentru Dezvoltare
2. Raiffeisen Bank
3. ABN Amro Bank
4. Banc Post
5. Alpha Bank
6. HVB Bank
7. Banca Comercial Ion iriac
8. Citibank Romania
9. UniCredit Romania
10. Piraeus Bank
11. Banca Romneasc
12. Volksbank Romania
13. RoBank
14. Finansbank (Romania)
15. Eurom Bank
16. SanPaolo IMI Bank Romania
17. Emporiki Bank - Romania
18. Egnatia Bank
19. Banca de Microfinanare MIRO
20. Romanian International Bank
21. Nova Bank
I. Total commercial banks
II. Foreign bank branches, of which:
1. ING Bank N.V.
2. National Bank of Greece
3. Banca Italo-Romena S.p.a. Italy
4. GarantiBank International N.V.
5. Banque Franco-Roumaine
6. Frankfurt Bukarest Bank AG
7. MISR Romanian Bank. Cairo
8. Banca di Roma S.p.a. Italy
Total (I+II)
CREDITCOOP

Own funds*

ROL bn.
2
252,259.0

%
3
41.8

ROL bn.
4
37,026.6

%
5
48.8

226,553.7
40,492,4
40,492.4
186,061.3
178,172.6
7,888.7
25,705.3

37.5
6.7
6,7
30.8
29.5
1.3
4.3

32,206.8
4,789.7
4,789.7
27,417.1
25,822.6
1,594.5
4,819.8

42.4
6.3
6.3
36.1
34.0
2.1
6.4

14,208.0
4,538.5
2,858.2
1,830.8
1,400.6
869.2
305,476.5

2.4
0.8
0.5
0.3
0.2
0.1
50.5

1,786.4
872.4
695.0
620.7
545.8
299.5
33,733.1

2.4
1.2
0.9
0.8
0.7
0.4
44.4

81,187.0
42,158.3
31,046.0
25,406.0
21,788.7
21,100.4
19,478.2
16,222.0
7,140.0
6,916.2
6,540.0
6,097.4
5,191.1
4,344.2
2,550.5
2,429.9
2,256.5
1,134.4
1,079.3
872.7
537.7
557,735.5

13.4
7.0
5.1
4.2
3.6
3.5
3.2
2.7
1.2
1.1
1.1
1.0
0.9
0.7
0.4
0.4
0.4
0.2
0.2
0.1
0.1
92.3

10,383.1
2,748.2
1,529.5
2,700.3
2,341.3
1,611.8
2,955.9
2,090.2
1,138.9
835.7
792.7
488.7
842.6
400.9
442.5
260.7
721.5
332.8
369.9
322.3
423.6
70,759.7

13.7
3.6
2.0
3.6
3.1
2.1
3.9
2.8
1.5
1.1
1.0
0.6
1.1
0.5
0.6
0.3
1.0
0.4
0.5
0.4
0.6
93.2

46,845.0
25,926.8
5,097.1
5,047.6
3,022.5
2,635.3
2,366.1
1,662.1
1,087.3
604,580.5
3,204.0

7.7
4.3
0.8
0.8
0.5
0.4
0.4
0.3
0.2
100.0

5,155.8
1,454.9
441.7
598.2
920.1
510.7
455.2
376.6
398.4
75,915.5
741.0

6.8
1.9
0.6
0.8
1.2
0.7
0.6
0.5
0.5
100.0

* equity (for foreign bank branches)

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Chapter 5. Currency issue


In 2003, the National Bank of Romania carried out specific activities related to
currency issue by ensuring the cash necessary for the smooth circulation of money
in terms of both quantity and composition. The cash output carried on in keeping
with the programme approved by the NBR Board. Thus, new polymer-based notes
were printed and coins were minted in order to replace the defaced and worn-out
notes and ensure that cash meets its forecasted growth. In the year under
consideration, the polymer-based note with face value of ROL 1,000,000 and
additional security elements was issued.
Furthermore, the National Bank of Romania retired from circulation the
denominations that it had decided to be no longer used as legal tender, as well as
the worn-out currency. Pursuant to the decision of the NBR Board, the following
denominations have been withdrawn:
coins with face value of ROL 5, 10, 20 and 50 years of issue 1990-1993
during 1-30 June 2003;
paper-based notes with face value of ROL 50,000 year of issue 2000 and
ROL 100,000 year of issue 1998 during 5 December 2003 - 31 May 2004.
Throughout 2003, the above-mentioned denominations, as well as the notes
withdrawn following the sanitation of cash in circulation, were replaced by new
ones with the same total value.
In order to improve the security of notes, the National Bank of Romania was
further concerned with getting informed and assimilating the latest special printing
techniques, as well as with preventing and fighting against acts of forgery and
counterfeiting. To this end, the NBR co-operated closely with other central banks,
mints and the relevant government institutions.
As for the preparations to join the Economic and Monetary Union, the National
Bank of Romania enhanced its co-operation with the national central banks in the
eurozone and the European Central Bank. The new cash management programme
which the dedicated NBR department will implement in association with other
departments by end-2004, is illustrative in this respect. In 2003, the drawing-up of
the technical specifications of the programme was initiated. The PHARE-supported
application will be implemented with the contribution of the National Bank of
Romania and the National Bank of Belgium.

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Moreover, in virtue of its statutory powers, the NBR launches numismatic issues
every year. This way it pays tribute to great spiritual, cultural and scientific figures
highly regarded both in Romania and abroad and marks historically representative
events that occurred in Romania and worldwide.
In 2003, the National Bank of Romania launched the following numismatic issues:
the gold coin with face value of ROL 100 in the series History of Gold The
Apahida Eagle (April 2003);
the silver coin with face value of ROL 500 dedicated to the 150th anniversary
from the birth of the composer Ciprian Porumbescu (July 2003);
the silver coin with face value of ROL 500 celebrating 500 years from the
establishment of the Rmnic Bishopric (September 2003);
the gold coin with face value of ROL 5,000 celebrating 625 years since the start
of the building of the Bran Castle (October 2003);
a set of three silver coins with face value of ROL 50 each, representing the
currency issue International Year of Pure Water Danube Delta Biosphere
Reserve (November 2003);
a mint set comprising the uu Palace Bucharest silver medal (November
2003);
the silver coin with face value of ROL 500, representing the currency issue
Centennial of the Romanian Numismatic Society (December 2003).

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Chapter 6. The Romanian payment system


Ahead of the EU integration, the Romanian payment system has been facing new
challenges as regards the handling of a larger volume of transactions and meeting
buyers requirements within the context of a single European market.
Although cash payments are for the time being the most resorted to means of
honouring financial obligations (51 percent of M1), the upward trend in both
volume and value of cashless payments in the prior years continued well into 2003,
as illustrated by their larger weight in total payments countrywide as well as their
growth in value as compared to 2002.
Special mention deserve the efforts aimed at creating a system able to reduce costs
and speed up processing of payments, by prompting the heavier resort to cards and
other electronic payment instruments.
In keeping with the trend of developing cashless payment media in 2003, electronic
payment instruments increased as well, in both absolute and relative terms.
Therefore, the value of payments with debit or credit cards reached about ROL
7,000 billion. The volume of transactions is supported by an infrastructure that was
permanently upgraded in line with the latest developments in the field; at end2003, there were 15 networks, more than 2,400 ATMs and roughly 10,000 POSs.
In qualitative terms, the modernisation of electronic payments is illustrated by the
diversification of financial products supplied by companies in this line of business.
In 2003, the number of Internet banking and home banking payment instruments
increased and a new electronic payment instrument, i.e. phone banking, was
developed; all these instruments were used concurrently with debit or credit cards.
The efforts made by banks to diversify the array of products met with users quick
response which translated into a number about 12 times larger of accounts from
which payments via internet banking can be performed. At the end of 2003, such
accounts exceeded 19,000.
Another indicator relevant to the development of the payment system as compared
to 2002 was the value of operations in financial instruments settled through the
national payment system, i.e. ROL 318,516 billion.
In the discharge of the tasks as regards securing the smooth functioning of the
payment system with a view to ensuring financial stability, transposing the acquis
communautaire in the field of payment systems and implementing the electronic
payment system, the following measures were taken:

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1. January 2003 saw the start of the implementation of the electronic payment
system that includes:
Real Time Gross Settlement System (RTGS);
Automated Clearing House (ACH);
Government Securities Registration and Settlement System (GSRS).
The stages defining the operational specifications were covered and, at present, the
pilot test for the three systems is in progress.
2. On 1 September 2003, the processing of funds transfers in relation to the State
Treasury as well as of funds transfers in relation to the money and foreign
exchange markets (including the primary market for government securities) was
taken up by TransFonD joint-stock company, the system being operated based on a
mandate from the National Bank of Romania.
On this background, the regulatory framework underwent the following alterations:

NBR Circular No. 21/2003 amended and supplemented NBR Circular No.
9/2001 on the operation of the National Company for Funds Transfer and
Settlement TransFonD joint-stock company, as the agent of the National
Bank of Romania, mainly by including funds transfers in relation to the State
Treasury in the payments and settlements performed by TransFonD joint-stock
company on a mandate. Moreover, the procedure to cover the net net debit
position of the State Treasury arising from the processing of low-value funds
transfers as well as the manner of signing and stamping the documents
associated with the settlement and the statements of account issued by
TransFonD joint-stock company as the agent of the National Bank of Romania
were established.

NBR Circular No. 22/2003 amended NBR Regulation No. 1/2002 on the largevalue funds transfer system, stipulating that large-value payments in relation to
the State Treasury shall be settled on the banking day on which they were
collected by TransFonD joint-stock company and that credit institutions shall
have access to the large-value funds transfer system through a single point of
entry also as regards large-value payments in relation to the State Treasury. The
Circular also stipulates the acceptance of the State Treasury as a participant in the
large-value funds transfer system, the extension of the time period to collect
payments in relation to the money and foreign exchange markets, so that credit
institutions can invest receipts from funds transfers in relation to the State
Treasury on the same day. Moreover, the Circular stipulates that neither the
National Bank of Romania nor the State Treasury may be required to pay a

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commission for the services provided by TransFonD joint-stock company, within


the large-value funds transfer system.

NBR Regulation No. 1/2003 on the settlement of low-value payments in


relation to the State Treasury sets forth the acceptance of the State Treasury as
a participant in the low-value funds transfer system, the manner in which the
bilateral netting of low-value payments in relation to the State Treasury and
payments between treasuries should be handled regardless of their amount or
net settlement, through the low-value funds transfer system managed by
TransFonD joint-stock company. The Regulation also lays down the time
periods for the collection and processing of low-value payments in relation to
the State Treasury and of payments between treasuries, the manner of
processing refusals of collecting low-value payments in relation to the State
Treasury and of payments between treasuries, the fact that neither the National
Bank of Romania nor the State Treasury are required to pay a commission for
the services provided by TransFonD joint-stock company within the low-value
funds transfer system as well as the detection and correction of faults found in
the handling of low-value funds transfers.

These measures led to the inclusion of the State Treasury among the participants in
the payment system (which helped reduce technical and operational differences
between the State Treasury and the banking system) and represented a crucial stage
in preparing the State Treasury for the implementation of the electronic payment
system.
3. In order to avert any potential disruptions in the economy during national
holidays, usually religious feast days, in furtherance of the provisions of the
Labour Code, the National Bank of Romania issued Norms No. 10/2003 regarding
the maximum time period allowed for the discontinuance of the activity of the
payment and settlement system and of money and foreign exchange markets.
4. During 2003-2004, the ECB further assessed the activity of the payment systems
and of the settlement systems for operations in financial instruments; several
recommendations were made to the competent authorities in Romania, which are to
be followed up according to a detailed plan, the completion of implementation of
the electronic system for interbank payments representing the prime stage of the
plan.
5. The Romanian Government issued Ordinance No. 6/2004 regarding cross-border
credit transfers, which was approved by Law No. 119/2004, thereby ensuring the
transposition of provisions of Directive 97/5/EC on cross-border credit transfers
and of Recommendation 90/109/EEC into the national legislation.

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The Ordinance sets mainly the category of cross-border credit transfers to be


governed by its provisions, the interdiction for individuals to provide services of
money transfers at their own initiative, the minimum requirements imposed on the
institutions carrying out cross-border credit transfers (regarding the transparency of
transfers, their performance on schedule or before the cut-off date, the full
compliance with the clients transfer instructions) as well as the legal sanctions for
failure to meet such obligations, in addition to and regardless of the responsibility
incumbent on these institutions according to the common law. Furthermore, the
Ordinance sets forth the implementation of an alternative procedure for settling
disputes, vesting the National Bank of Romania with the power to mediate those
disputes. This task will be fulfilled by means of a dedicated department that will
analyse the complaints and will make recommendations based on appropriate
procedures granting access to mediation.
As the electronic payment system was developed to use unique International Bank
Account Numbers, i.e. IBAN codes, for the accounts of the clients of credit
institutions and of the State Treasury as well as for the accounts opened with the
National Bank of Romania, in compliance with the law, for various institutions that
are not credit institutions and are not assigned a Bank Identifier Code, i.e. BIC
code, the National Bank of Romania issued Regulation No. 2/2004 on the use of
IBAN codes in Romania.
The Regulation ensured the adoption of several payment-related standards and
practices acknowledged by both EU and international institutions, considering that
electronic payment systems require highly standardised information for the
automated processing of transfer instructions. Specifically, EU Regulation No.
2560/2001 of the European Parliament and of the European Council of 19
December 2001 on cross-border payments in euro, which will be adopted by
Romania upon its joining the EU, requires the use of IBAN and BIC codes for
cross-border credit transfers within the EU.
The Regulation lays down the mandatory nature of the creation, use and
notification of standardised IBAN codes by credit institutions and the State
Treasury for their clients accounts. Such codes are used to make payments, in
ROL or any other currency, via payment systems or correspondent banks.
Moreover, in order to approximate the acquis communautaire, the Draft Law1 on
settlement finality in payment systems and settlement systems for operations in
financial instruments was prepared, ensuring the transposition of Directive
98/26/EC provisions into the domestic legislation a vital stage in the context of
the upcoming implementation of the electronic payment system.
1

Law No. 253 was passed on 16 June 2004.

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The implementation of the above-mentioned Directive will reduce sharply the legal
uncertainties surrounding the payment and settlement systems in Romania, paving
the way for the national systems to participate in the EU systems on a level playing
field once Romania has joined the EU.
The newly-created real time gross settlement system (RTGS) will thereby be
connected to the Trans-European automated real-time gross settlement express
transfer system (TARGET), which will help fulfil the prerequisite for risk
management in the payment systems of systemic relevance.
The law is intended, among others, to ensure the cost-efficiency and smooth
functioning of cross-border credit transfers and settlement instructions regarding
operations in financial instruments, thereby strengthening the free movement of
capital and the freedom to provide services on the single European market,
objectives Romania has to pursue in view of the EU accession.
The law will govern payment systems and settlement systems for operations in
financial instruments, any participant in such systems as well as the collateral
pledged in relation to the participation in the system or to the operations performed
by the National Bank of Romania and central banks in the European Economic
Area, in their capacity as central banks.
In this vein, the most relevant provisions refer to credit transfer and clearing
instructions (validity conditions and legal implications are specified), to the
winding-up proceedings (conditions are specified for the case where the opening of
winding-up proceedings has no retroactive effect on the rights and obligations of
the participant undergoing the respective proceedings) and to the collateral.
The law also stipulates that the National Bank of Romania selects the systems to be
subject to this law and that all the systems which are, by law, authorised by the
National Securities and Exchange Commission to effect settlements in financial
instruments are subject to the respective law.
In addition, the National Bank of Romania was vested with the power to monitor,
on a permanent basis, the payment systems and settlement systems for operations
in financial instruments that effect settlements via payment systems of systemic or
particular relevance. The law also stipulates that, after the EU accession, the
National Bank of Romania shall inform the European Commission about the
systems to be governed by the present law.

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With a view to incorporating the acquis communautaire into the national


legislation, Government Ordinance No. 9/2004 on certain financial collateral
arrangements was issued and approved by Law No. 222/2004. This piece of
legislation transposes into the national legislation the provisions of Directive
2002/47/EC on financial collateral arrangements, which sets the EU regime
applicable to financial collateral arrangements, whether the collateral consists in
cash or financial instruments.
The Ordinance establishes the categories to which the collateral provider and the
collateral taker belong. Furthermore, the provision of financial collateral is made
by delivery, transfer, holding, registering by which the collateral taker or a person
acting on the collateral takers behalf takes possession of or control over the
financial collateral. The Ordinance also lays down the manner of enforcement of
the financial collateral by the collateral taker.

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relations
A. European integration
1. General aspects
In accordance with the objectives pursued in preparing EU accession in 2007, the
National Bank of Romania further strove to keep up the institutional, structural and
operational adjustment of the Romanian economy, for bringing it in line with EU
requirements, based on the decisions made by the European Councils held in
Copenhagen (December 2002), Thessaloniki (June 2003) and Brussels (December
2003). The Regular Report on Romanias Progress towards Accession, released by
the European Commission on 5 November 2003, points out the positive
performance of the Romanian economy and the fact that the commitments assumed
by Romania in the negotiation process are largely met. According to the opinions
of European Commission experts, Romania further made great strides, in a
consistent and efficient manner as regards the overall strategy and in each sector
that is preparing to fulfil the accession criteria. Favourable views were expressed
with regard to the development of the banking system, particularly the headway on
the path of harmonising banking legislation with the acquis communautaire and the
strengthening of the National Bank of Romanias institutional capacity. Despite
this progress, withstanding competitive pressure and market forces within the EU
was still dependent on the existence of a functioning market economy and a stable
macroeconomic environment.
During 2003, the National Bank of Romania continued to be directly involved in
observing the commitments assumed by Romania under the Europe Agreement and
during the accession negotiations on the chapters relevant to the banking system.
The Report of the European Commission shows that most commitments assumed
in respect of the negotiation chapters pertaining to the National Bank of Romanias
activity were met, but efforts were still needed to fully transpose the acquis
communautaire into the national legislation. As with the administrative capacity,
the Report shows that the National Bank of Romania enjoys sufficient skilled staff
and adequate management capacity.

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2. Short- and medium-term objectives of the National Bank of Romania related


to the European integration policy
The short-term objective focuses on meeting the commitments assumed under the
accession negotiations on Chapter 3 Freedom to provide services, Chapter 4
Free movement of capital and Chapter 11 Economic and monetary union.
In the medium run, the following objectives are to be fulfilled:

strengthening of the central banks institutional capacity in line with the


standards required by the National Bank of Romanias participation in the
European System of Central Banks (ESCB) starting with the date of Romanias
EU accession;

further strengthening of the National Bank of Romanias supervisory capacity;

preparations for taking part in the negotiation of the EU Accession Treaty;

introducing the dedicated departments in the National Bank of Romania to the


content and requirements of the Growth and Stability Pact which Romania will
join upon EU accession;

preparing the National Bank of Romanias participation in drawing up the


accession strategy and the negotiation of requirements to join ERM2;

identification and scheduling of the prerequisites for preparing the participation


in the third stage of the EMU (adoption of the single currency the euro).

3. The stage of accession negotiations relative to the chapters regarding the


National Bank of Romanias activity
Chapter 3 Freedom to provide services
Negotiations on Chapter 3 were opened on 20 December 2002 and are under way,
the Romanian authorities envisaging the provisional closure of this chapter by endJune 2004.
In 2003, the National Bank of Romania was involved in drafting the
Complementary Position Paper on Chapter 3 in response to the EU Joint Position.
As for banking services, the document presents the progress made by the banking
sector during July 2002-June 2003, the results achieved by the Working Group in
monitoring the barriers to freedom of establishment and freedom to provide
services, and the Action Plan for the implementation of recommendations in the
Report of the peer review mission that took place between 2-6 December 2002.
Mention should be made that the progress in fulfilling the recommendations

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included in the Action Plan was one of the objectives of the second peer review
mission held during 2-5 December 2003. According to the commitment assumed in
the Complementary Position Paper, identification by the Working Group of
barriers to the freedom of establishment and the freedom to provide services
carried on in 2003. Specifically, the Romanian legislation was analysed based on
the decisions of the European Court of Justice concerning the infringement of
Articles 43 and 49 in the EU Treaty. In order to remove the barriers identified in
those pieces of legislation, the institutions concerned set time limits for the
amendment of the legislation in the coming period and the list was sent to the
European Commission in November 2003.
The coming into effect of Law No. 485/2003 amending and supplementing Law
No. 58/1998The Banking Act ensured, in terms of the commitments assumed by
the National Bank of Romania in the EU accession process, that most of the
relevant provisions of the acquis communautaire were incorporated into the
national legislation; most of the barriers to the freedom of establishment and the
freedom to provide banking services identified in 2002 were removed and the
groundwork was laid for amending the banking regulations in compliance with the
commitments assumed in the Position Paper on Chapter 3 Freedom to provide
services. In addition, in January 2004, the legal framework was put in place for
the transposition of EU Directives on financial collateral arrangements as well as
on the reorganisation and winding-up of credit institutions.

Chapter 4 Free movement of capital


At the Intergovernmental Conference on Romanias accession to the European
Union held on 7 April 2003, Chapter 4 Free movement of capital was
provisionally closed.
The Central Banks endeavours to liberalise capital operations, which translated
into the successive amendments of Regulation No. 3/1997 on foreign currency
operations, were fully successful only after the abrogation, at the outset of 2003, of
Government Ordinance No. 18/1994 on measures to strengthen corporate financial
discipline (by Government Ordinance No. 34/2003 on measures regarding the
financial and foreign exchange corporate discipline). This measure paved the way
for the National Bank of Romania to issue Circular No. 5/2003 amending and
supplementing Regulation No. 3/1997, thus removing several administrative
barriers in the field.
The reform of the payment system continued. On 1 September 2003, the processing
of funds transfers in relation to the State Treasury was fully taken over by the
National Company for Funds Transfer and Settlement TransFonD which carries

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out this activity based on a mandate from the central bank. The measure enabled
the integration of the State Treasury among the participants in the payment system
(thereby reducing technical and operational differences between the State Treasury
and the banking system) and represented a prime stage in preparing the State
Treasury for the implementation of the electronic payment system. As for the
newly passed legislation in this field, Government Ordinance No. 6/2004 on crossborder credit transfers vests the National Bank of Romania with the power to
resolve disputes related to cross-border credit transfers. The Ordinance sets forth
the establishment within the National Bank of Romania of a specialised division
with tasks in this field, which will also set the regulatory framework and
implementation procedures stipulated in Directive 97/5/EC. In virtue of this
provision, NBR Regulation No. 3/2004 on mediation of disputes in relation to
cross-border credit transfers was issued. On 14 January 2003, implementation of
the electronic payment system was initiated as all the preparatory stages required
by the European Commission had been covered before the end of 2002. Along with
the implementation of the electronic payment system, two technical assistance
agreements were concluded and are under implementation to provide guidelines for
the project and to ensure the quality of IT services and products.

Chapter 11 Economic and monetary union


On the strength of the negotiations papers on Chapter 11 Economic and monetary
union, the Romanian authorities committed themselves to amend, by year-end
2004 at the latest, Law No. 101/1998 The Statute of the National Bank of
Romania, with a view to bringing it in line with the provisions of the Treaty on
European Union, of the Protocol on the Statute of the ESCB and of the ECB as
well as with the provisions of other EU regulations on central banking in the EU
member states.
In this context, the joint working group Ministry of Public Finance National Bank
of Romania worked out the bill to amend Law No. 101/1998. In keeping with the
stages and time limits set forth in the calendar for the amendment of Law No.
101/1998, included in the Supplementary Information Paper on Chapter 11, in
August 2003, the draft law on the Statute of the National Bank of Romania was
submitted to the European Commission and the ECB. In October 2003, the
National Bank of Romania was notified on the comments and recommendations
made by the two European institutions and proceeded to review the draft law
accordingly. Moreover, the final version was also based on the conclusions of the
talks with experts from Banque de France. The draft law on the Statute of the
National Bank of Romania was sent to the Ministry of Public Finance on 2
February 2004. After receiving the endorsement of the Ministry of European

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Integration and the Ministry of Justice, the draft was approved by Government in
its meeting of 7 April 2004 and was submitted to Parliament for approval.
Law No. 101/1998 on the Statute of the National Bank of Romania was amended
and supplemented mainly in the following respects:

establishment of the primary objective of the National Bank of Romania,


namely ensuring and maintaining price stability;

ensuring institutional, personal and financial independence of the National


Bank of Romania;

prohibition of direct financing of the public sector by the National Bank of


Romania;

prohibition of privileged access of the public sector to financing from financial


institutions.

4. PHARE assistance
PHARE assistance managed by the National Bank of Romania in 2003 proved to
be a useful tool in ensuring further transposition of the acquis communautaire and
sustainability of short- and medium-term objectives of the National Bank of
Romania regarding the European integration policy.
In 2003, the National Bank of Romania covered all the stages of contracting funds
allocated under the 2001 PHARE National Programme and completed this process
in November 2003.
The 2001 PHARE Project National Bank of Romania Institution Building,
worth EUR 4 million, includes the following subprojects: (i) implementation of the
acquis communautaire relative to Chapter 3 Freedom to provide services and
Chapter 4 Free movement of capital; (ii) strengthening of the supervisory
function of the National Bank of Romania; (iii) implementation of a new balanceof-payment system, including the related technical infrastructure; (iv) technical
infrastructure in relation to the IT cash management system; (v) greater
effectiveness of banking supervision and accounting operations, including
investment in infrastructure; (vi) upskilling of the NBR staff. These subprojects are
unfolding, as appropriate, via twinning light procedures, technical assistance and/or
purchase of IT equipment and software.
In 2003, the following technical assistance agreements were completed: agreement
with Banque de France to approximate legislation related to Chapter 3 Freedom
to provide services and Chapter 4 Free movement of capital as well as the

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agreement with De Nederlandsche Bank for the implementation of the new


balance-of-payment system; at year-end 2003, an agreement with Ernst & Young
and Siveco for the improvement of the early warning and bank rating system and
another agreement with Interprojects Company (Germany) in respect of upskilling
of the NBR staff were concluded. In November 2003, agreements were concluded
for the purchase of IT equipment and/or software necessary for the new balance-ofpayment system, the IT cash management system, the integrated accounting system
of the National Bank of Romania and the early warning and bank rating system.
In December 2003, the 2003 PHARE Financing Memorandum was signed by the
Government of Romania and the European Commission whereby the National
Bank of Romania was granted a credit line of EUR 4 million for the following
subprojects: (i) enhancement of banking supervision; (ii) implementation of
European standards in the field of financial account statistics; (iii) upskilling of the
NBR staff, i.e. training of legal advisers; (iv) further harmonisation of the banking
legislation; (v) harmonisation of the internal audit in the National Bank of Romania
with the practices used by central banks in EU member states with a view to
preparing NBRs joining the ESCB; (vi) completion of the subproject
Computerisation of the National Bank of Romanias Accounting System
(carrying on of the subprojects financed under the 1998 PHARE and 2001 PHARE
programmes in order to develop an integrated accounting system in line with the
national accounting system and the European Accounting Standards); (vii)
automation of market operations (computerisation of front and middle office
activities to facilitate data processing and risk management). These subprojects are
to be carried out during 2003-2006 by means of twinning procedures, technical
assistance and/or purchase of IT equipment and software.
Particular attention should be attached to the twinning project Harmonisation of
legislation and improvement of the administrative capacity of the National Bank of
Romania. Following the assessment by the NBR officials of offers from central
banks in the EU member states, a consortium comprising Banque de France
(leader), Banca dItalia and De Nederlandsche Bank was selected as partner in the
implementation of the project.
In 2003, the Strategy of the National Bank of Romania (2003-2006) that lays down
the National Bank of Romanias recommendations for financing under the 2003
PHARE Programme was prepared. The document presents each activity from the
standpoint of the present state of affairs and of the objectives and means of
achieving them by specifying (where appropriate) the projects carried out with
PHARE financial support, the need to carry on some projects already initiated or
completed by allocating funds under the 2003 PHARE financing project and the
need to implement new projects.

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5. The National Bank of Romanias contribution to preparing the national


documents required for Romanias accession to the EU and to compiling
reports on the fulfilment of the commitments assumed
In 2003, the National Bank of Romania took part in formulating the sections
pertaining to its field of competence that were included in the programming and
reporting documents Romania submitted to the European Commission, as follows:

Pre-accession Economic Programme (PEP), a basic programming document on


the medium-term economic policy, which focuses on the measures to be taken
in order to meet the Copenhagen criteria;

Report on the Progress in Preparing the Accession to the EU (September 2002June 2003) based on which the European Commission provides periodical
assessments of Romanias preparedness to join the EU and the progress
achieved;

Addendum to the 2003 Report on the Progress in Preparing the Accession to


the EU (September 2003);

Documents presented by Romania at the periodical meetings of the RomaniaEU Association Committee, Association Subcommittee No. 2 Internal
Market and Association Subcommittee No. 4 Economic and Monetary
Issues, Capital Movements and Statistics. The European Commission experts
periodically assess the progress in fulfilling the commitments assumed by
Romania in preparing accession to the EU.

Within this context, special mention deserves the major contribution of the
National Bank of Romania to the successful carrying out of the second peer review
mission by the European Commission in the field of financial services in Romania
during 2-5 December 2003. The aim of the mission was to assess the progress in
the transposition and implementation of the acquis communautaire in the field of
financial services and the implementation of the recommendations made during the
first peer review mission in December 2002, which were included in the Financial
Services Action Plan. The experts of the mission contend that in the period
elapsed from the first peer review mission (December 2002), banking activity made
significant progress. Banking supervision improved in all respects, namely
issuance of regulations, analyses and inspections, and the recommendations made
in the Report of the first peer review mission were implemented in a satisfactory
manner. A new peer review mission will take place in July 2004.

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The National Bank of Romania focused on the close monitoring and compliance
with all the time limits set for the fulfilment of the commitments assumed in
preparing Romania for EU membership referred to in:

Priority Action Plan for EU Accession (November 2002-December 2003


and December 2003-December 2004);

Programme on fulfilling the criteria for the existence of a functioning


market economy;

Financial Services Action Plan;

Legislative Programme for 2004 H1;

Legislative priorities of the Government of Romania in the context of


Romanias efforts to prepare accession to the EU and integration with
NATO and with a view to achieving several objectives of the
Governmental Programme submitted in the first ordinary session of 2004
(February-June 2004).

B. Relations with international financial institutions


International Monetary Fund (IMF)
Romania has been a member of the International Monetary Fund (IMF) since 1972.
At present, Romanias subscription quota (subscribed and paid-up capital) in the
IMF share capital is SDR 1,030.2 million, of which SDR 243.825 million in gold
and foreign currencies and SDR 786.375 million in ROL, in an IMF account
opened with the National Bank of Romania.
The year 2003 saw the completion of the first Stand-By Arrangement, out of six
such arrangements that have been concluded since 1991.
During 10-21 February and 14 July-1 August 2003, an IMF mission in Bucharest
carried out, together with the Romanian authorities, the third and the fourth reviews
of the progress made in implementing the programme outlined in the Memorandum
on economic and financial policies pursued by the Government of Romania in
2001-2002, which underlined the approval of the Stand-By Arrangement worth
SDR 300 million on 31 October 2001. The schedule of purchases under the abovementioned arrangements was the following: the first purchase worth SDR 52
million on 5 November 2001, and the second and third purchases totalling SDR
82.666 million on 3 September 2002.

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The IMFs Executive Board approved on 25 April 2003 the extension of the StandBy Arrangement until 15 October 2003 and the release of the fourth tranche worth
SDR 55.111 million (nearly USD 76 million) under the agreement in force on 30
April 2003.
On 15 October 2003, the IMFs Executive Board completed the fourth and final
review of the Stand-By Arrangement; thus, the last purchase in amount of SDR
110.223 million (about USD 158 million) was made on 17 October 2003.
At the request of the Romanian authorities, IMF and World Bank officials decided
to include Romania in the IMF/WB Financial Sector Assessment Program (FSAP).
The assessment was carried out in 2003 H1 via two IMF-WB joint missions in
Romania: (i) a preliminary mission (10-17 March 2003) and (ii) the main mission
(12-23 May 2003).
Following the discussions with the Romanian authorities, the IMF and World Bank
experts drew up the Financial System Stability Assessment (FSSA). The objective
of the report is to identify the main vulnerabilities of the Romanian financial sector
and to provide recommendations with a view to correct these weaknesses.
The conclusion of the FSAP mission was that the Romanian authorities had made
remarkable progress towards the stabilisation of economy and financial sector over
the past few years. Based on the analysis of capital composition, corporate finance
and potential weaknesses of the banking system, banks were deemed capable of
coping with considerable shocks from the corporate sector. Moreover, stress tests
for credit risk, interest rate risk and exchange rate risk show that the banking
system is highly resilient to shocks. Solvency indicators point to high capital
adequacy ratios, increased liquidity and manageable levels of bad loans.
The report was submitted to the IMFs Executive Board on 15 October 2003 and
published on the IMF website.
Romania is an active participant in the General Data Dissemination System
(GDDS), which periodically provides the public with comprehensive economic,
financial, social and demographic data that are deemed essential for the
transparency of both policies used and the macroeconomic performance.
Furthermore, Romania initiated the subscription to the Special Data Dissemination
Standard (SDDS), whereby greater transparency on compiling and disseminating
statistical data is ensured.

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In the context of the policy pursued by the IMF in order to protect the Safeguards
Assessments resources and taking into account the fact that Romania uses IMF
resources, the National Bank of Romania is and will be subject to IMF assessment
until the full repayment of IMF loans. In 2003, the National Bank of Romania took
measures that ensured the implementation of recommendations outlined in the
report prepared by IMF representatives on 13 May 2002.
In 2003, principal repayments were worth SDR 79,608,334 and the interest
payments amounted to SDR 8,862,606, of which SDR 1,255,571 in net interest on
SDR allocations-holdings.

International Bank for Reconstruction and Development (IBRD)


At end-2003, data on the IBRD-Romania relation were indicative of a portfolio
including 30 operations worth USD 1,173.4 million, of which:

20 projects financed by IBRD tantamount to USD 1,148 million;

10 grants in amount of USD 25.4 million.

Out of total loans, disbursements worth USD 520.89 million were performed, while
USD 6,274 million were used out of the non-redeemable funds.
On 30 June 2003, the National Bank of Romania credited the IBRD account with
ROL 111,947,097,603, representing the financial obligation arising from the
preservation of the value of Romanias subscription quota in the IBRD share
capital.

European Bank for Reconstruction and Development (EBRD)


In 2003, Romania remained the third largest recipient of EBRD financing, after the
Russian Federation and Poland.
From 1992 until end-2003, EBRD signed 110 loan agreements with Romania
totalling EUR 2,309 billion, out of which EUR 592.5 million (25.6 percent) were
allotted to support the financial sector.
On 15 April 2003, the sixth instalment worth EUR 1,350,000 of Romanias
subscription quota in the EBRD increased capital was paid.
On 25 November 2003, the EBRD Board of Governors approved the Strategy for
Romania 2004-2005. This is the eighth strategy approved for Romania and each
document of this kind was drafted for a period of nearly two years.

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According to the strategy, the EBRD financing focuses on the following sectors:

infrastructure development, including privatisation/sale of public utilities


in energy and transport sectors; co-financing and higher grade turning to
account of EU funds related to pre-accession via institution building;

private sector development, including improvement of investment


environment, ensuring just conditions to take action, and completion of
privatisation;

further strengthening of the financial system (including non-banks) and of


small- and medium-sized companies.

Three objectives are envisaged in respect of the financial sector:

privatisation and strengthening; the EBRD estimates it may get involved in


the medium run in restructuring and privatisation of BCR, CEC and
Eximbank;

new products for households and small- and medium-sized companies


(mortgage facilities, guarantees);

support of leasing companies via long-term financing, along with EU


programmes.

Black Sea Trade and Development Bank (BSTDB)


At end-2003, the BSTDB had already signed 10 loan agreements with Romania,
amounting to USD 70.68 million.

European Investment Bank (EIB)


The EIB stands for a supplementary financing source, covering 50 percent at the
most of a project cost.
The EIB operations are aimed at meeting the objectives set in the Corporate
Operational Plan in all the 13 countries seeking EU accession. According to the
financial standing on 15 October 2003, loan agreements signed with these countries
amounted to EUR 21,908.8 million. Romania was allotted EUR 3,001.5 million (14
percent) of this amount, ranking third along with Hungary (EUR 3,140 million)
after Poland (EUR 6,306 million, or 29 percent) and the Czech Republic (EUR
4,664.34 million, or 21 percent).
At end-2003, 49 loan agreements were signed with Romania, of which six were
concluded in 2003.

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Bank for International Settlements (BIS)


Following the decision taken at the BIS Annual Meeting held in Basle on 30 June
2003, the National Bank of Romanias account opened with the Bank for
International Settlements was credited with CHF 3,200,000, representing
dividends on the 8,000 shares the National Bank of Romania holds in BIS.

International Economic Co-operation Bank (IECB) and International


Investment Bank (IIB)
In 2003, the activity of the two institutions focused on debt rescheduling for the
Russian Federation (the largest debtor to the two banks) pursuant to Decisions Nos.
426/2002, 764/2003 and 770/2003 issued by the Government of the Russian
Federation, which is due to last until year-end 2004. Furthermore, administrative
and legal actions were completed in order to obtain the title-deeds on the buildings
of the two banks.
At the bi-annual meetings of the two banks, aspects related to IIB resuming lending
and IECB resuming commercial operations were discussed.

Other international activities


The National Bank of Romania took part, along with other institutions, in drafting
the National Plan for NATO Membership, and in devising the calendar of
economic reforms assumed by Romania with a view to preparing NATO
integration.
In 2003, as a result of meeting the structural criteria provided by the Supplemental
Loan Agreement between Romania (the borrower), the National Bank of Romania
(the borrowers agent) and the European Community (the lender) concluded on 11
November 2002, the first sub-tranche worth EUR 50 million of the second tranche
of the loan was released.
In May and October 2003, the 9th and 10th Meetings of the Governors Club of the
Black Sea Area, the Balkans and Central Asia took place in Bucharest and Sinaia.
The Governor of the National Bank of Romania chaired the meetings. The debates
resulted in a useful exchange of information on inflation targeting, capital flows
and ensuring convergence of economies in the area with EU criteria, as well as on
the role of the central bank in the functioning of payment systems, strengthening of
the institutional capacity of the banking system and the relevance of
communication with the public in order to ensure the efficiency of monetary
policy.

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of Romania
A. Developments in international reserves
In 2003, international reserves stayed within the optimum range, although their
growth rate slowed down from the previous year. At the end of 2003, international
reserves came in at EUR 7.5 billion, of which EUR 6.4 billion in foreign exchange
and EUR 1.1 billion in gold (the equivalent of 105.1 tonnes of gold), accounting
for 85.3 percent and 14.7 percent respectively.
The level of the foreign exchange reserves was influenced by the monetary policy
operations of the NBR, the payments and receipts in foreign exchange resulting
from the policy of the Ministry of Public Finance on the financing of budget deficit
and the repayment of public debt and publicly guaranteed debt, as well as by the
maintenance of required reserves in foreign exchange by commercial banks.

International Reserves
8,000

EUR millions; end of period

7,000
6,000

Other
currencies

5,000

EUR

4,000
USD

3,000
2,000

gold

1,000
0
1999

122

2000

2001

2002

2003

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Chapter 8. Management of international reserves of Romania

1. Inflows

a) inflows of foreign exchange into the Ministry of Public Finance accounts


opened with the NBR following the issues of foreign exchange securities on
the domestic and foreign markets, the recovery of some foreign exchange
claims by the BARA, and the receipts of foreign exchange from privatisation
deals. Their total exceeded EUR 1,145 million, of which EUR 690.5 million
came from Eurobond issue;
b) disbursement of the last tranches under the Stand-By Arrangement with the
IMF worth EUR 204 million;
c) purchases in amount of EUR 943 million, following the intervention in the
domestic forex market;
d) the rise by EUR 390 million in banks required reserves in foreign exchange;
e) revenues from the management of the international reserves to the tune of EUR
177 million;
f) surrender to the forex reserves tantamount to EUR 28 million.

2. Outflows1
a) repayments of public debt and publicly guaranteed debt worth EUR 1,485
million;
b) sales on the domestic forex market, amounting to EUR 385 million;
c) payments of subscription quotas to international financial institutions in total
amount of EUR 6 million;
d) other payments related to currency issue, various bills etc., in amount of EUR
12.25 million.
Throughout 2003, the gold reserve experienced slight fluctuations reaching 105.1
tonnes versus 105.3 tonnes at end-2002, as a result of both further retrocession (in
compliance with legal provisions in force) and purchases on the domestic market.
In addition, the NBR holdings of alloys of precious metals (gold and platinum),
whose gold content had been included in total gold reserves were sold. Following

Based on settlement date

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this operation, the forex reserves increased USD 14.58 million, representing the
equivalent of the precious metals recovered from alloys, while the gold reserve
decreased accordingly. Mention should be made that the recovery of gold from
alloy, its melting down into ingots and the transport in the country or abroad in
order to confide it to a depositary would have been far costlier and would have
lacked economic justification.

B. Developments on international financial markets


At the outset of 2003, the development of financial markets was hallmarked by the
escalating geopolitical tensions, culminating in the outbreak of the war in Iraq. The
uncertainty-plagued environment induced an extreme volatility, thereby affecting
the well functioning of the markets. Nevertheless, after the outbreak of the war, a
migration of capital from assets deemed to be the safest (government bonds, gold)
towards shares and corporate bonds was noticed, owing to the perception that the
state of war would be short-lived and the coalition would have a good chance for
success.
From the economic viewpoint, the fears expressed by the Federal Reserve on a
possible faster-than-desired decrease in inflation rate or even emerging signs of
deflation, on the one hand, and the slow growth rate of the European economies, on
the other hand, entailed further interest rate cuts in developed countries. Thus, the
reference interest rates reached minimum post-war levels, i.e. 1 percent in the
USA, 2 percent in the EMU and 3.5 percent in the United Kingdom.
The USD-expressed gold price reached a 7-year high, rising by almost 22 percent,
from USD 342.75 per ounce at end-2002 to USD 417.25 per ounce at end-2003.
Behind this performance stood mainly the step-up in the demand for physical gold
on the European and Asian markets, as a result of the weaker US dollar.
The demand for investment gold expanded on the backdrop of international
political tensions and stronger fears on rekindling inflation in the main developed
countries as a result of loose monetary and fiscal policies adopted by the authorities
in order to spur economic growth.
As far as the supply is concerned, the gold mined worldwide rose 0.4 percent.
Moreover, a group of large gold producers decided to reduce the volume of
forward sales and even buy back some amounts sold in the preceding periods under
the general policy of output and financial risks management. Furthermore, the
official sector continued to pursue its policy of reducing gold reserves; the central

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banks of Portugal, Greece, Canada, and Switzerland were among the banks which
made such operations public.
Behind the dramatic fall in interest rates on short-term gold deposits (to less than
0.1 percent) stood the fast increase in the price of gold, particularly owing to its
implications on the large producers financial behaviour.

C. Management of international reserves


In 2003, the strategic objectives approved by the NBR Board were accomplished,
thus ensuring the fulfilment of the three basic principles underlying the
management of international reserves, namely security, liquidity and realising
incomes from investment.
The foreign exchange and gold reserves were invested in safe instruments issued
by governments, government agencies or international organisations, by
considering the rating and financial statement of issuers and by diminishing swiftly
the exposure to doubtful entities. The amounts necessary either to make payments
falling due or to intervene in the domestic market were steadily available, the NBR
aiming at maintaining an optimum level in the current accounts, usually
remunerated at a lower level.
Total revenues collected from the management of international reserves amounted
to EUR 177 million, which brought about a 2.7 percent annual return to the average
balance of international reserves invested.

Composition of Forex Reserves by Assets


100%

securities

80%
60%
time deposits

40%
20%
demand
deposits

0%
2001

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2003

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By issuer, investments were made only in securities issued by the US Government,


government agencies or agencies sponsored by the US Government, by
governments of the EU member states, government agencies or agencies sponsored
by the governments of the EU member states, and supranational institutions, in
compliance with the strategy approved.
The shares of such categories of instruments in total portfolio underwent changes
depending on the conditions of the fixed-income securities market, as follows: the
share of securities issued by agencies and supranational institutions went down,
while the share of government securities went up. This approach proved to be
profitable as in the second half of 2003, one of the US mortgage agencies was
involved in an argument regarding the accuracy of accounting records, which
depressed the price of its securities.

Composition of Government Securities Portfolio by Issuer


Government
agencies

100%
80%
60%

Supranational
entities

40%
20%
Governments
0%
2000

2001

2002

2003

In the reported year, significant progress was made towards acquiring and applying
some modern techniques to manage fixed-income securities portfolios and some
new methods to monitor, measure and estimate financial risks.
According to the initial strategy for international reserve management, the NBR
Board decided a forex composition in which the euro would account for 55 percent
at most. In September 2003, the International Reserve Management Committee
made an assessment of the new coordinates of monetary policy, external debt
composition and trade flows, as well as of the developments of international
financial markets, and suggested the NBR Board to change the strategy so as to
raise the share of the euro in total foreign exchange reserves to 60 percent at most.
The suggestion was accepted along with the decision to decrease the share of the
US dollar from 40-50 percent to 35-45 percent of foreign exchange reserves.

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Starting from the appraisal of the state of affairs over the past 2-3 years, namely of
the international climate featuring low interest rates, and upon the request of the
executive members, the International Reserve Management Committee took steps
to get information on the possibilities to improve returns on international reserves
by finding new investment instruments or opportunities, with the observance of the
prudential approach to the risks taken. This is an ongoing process but the inference
is that higher revenues from management of international reserves can be obtained
provided that additional risks are assumed.

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Chapter 9. Development of NBR functions


A. Restructuring of NBR activity
The restructuring of NBR activity, which started in 1999, is part of the central
banks long-term strategy. The National Bank of Romania is poised to become a
constituent of the European System of Central Banks 1 in 2007 and a member of the
Eurosystem2 at the horizon of 2011-2013.
Several types of central bank organisation structures can be found in Europe, the
opposites being Banque de France (with a very large number of branches and a
remarkable presence across the country) and Bank of England (with a modest
number of branches and many of its activities subject to outsourcing). The National
Bank of Romania chose to adopt an intermediary type, considering that a number
of roughly 20 branches could ensure, on the one hand, the adequate coverage of the
42 counties and, on the other, a sufficiently flexible and efficient structure.
After a critical analysis of the NBR organisation structure was made in 1998,
several drawbacks and disruptions came to the fore, as follows:
a relatively large number of staff more than 4,800 employees (roughly 2
central bank employees per 10,000 inhabitants), i.e. above the European
average;
overmanning in terms of auxiliary staff and non-college graduates;
a large number of branches (41) whose staff was mainly engaged in activities
which could be contracted out (payments and settlements) or rendered more
efficient by implementing modern technologies.
The restructuring of NBR activity featured several stages, as follows:
on 1 September 1999, the number of departments in the NBR head office was cut
to 15, whereas 22 branches and 19 agencies (resulting from former branches)
were established countrywide. As a result, 1,025 positions were axed, 357 at the
head office and 668 countrywide;

1
2

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Comprising the ECB and the national central banks of EU member states.
Comprising the ECB and the national central banks of the member states which adopted the euro.

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Chapter 9. Development of NBR functions

on 1 September 2000, out of the total figure of 3,804 posts 399 were axed, of
which 111 at the head office and 288 countrywide. Moreover, the agencies were
subject to dissolution;
on 1 May 2001, following the outsourcing of bank payments and settlements, out
of the total figure of 3,405 posts 867 were axed, of which 86 at the head office
and 781 countrywide. Also in 2001, new divisions were established, i.e. the
Settlements Division within the Bank Operations Department (with 27 positions
taken over from the Payment and Settlement Office) and Press Relations
Division, a vital body for information dissemination and modelling public
expectations with a view to shifting to inflation targeting. The year 2002 saw the
establishment of European Integration and International Relations Department
(having 15 positions taken over mostly from the Monetary Policy Department) in
order to bring under the same umbrella the operations of monitoring the
commitments assumed by the NBR ahead of Romanias joining the EU.
In 2003, the major steps taken to further increase the efficiency of NBR
organisation were the following:
the dissolution, as of 1 September, of three branches in counties with poor bank
network, i.e. Alba, Harghita, and Hunedoara;
the transfer, as of 1 January, of the activity of assaying and hallmarking of
precious metals to the National Authority for Consumer Protection (along with
the related 41 positions);
the endowment of treasuries with efficient systems for the processing and
destruction of notes, with treasury operations resting with four regional centres,
and the treasury operations conducted by the other branches being subject to a
two-stage dissolution, on 1 April and 1 September respectively;
the disposal of two holiday homes owned by the central bank, along with the
accompanying staff.
In the wake of outsourcing or reorganisation of the activities mentioned above,
staff numbers were cut by 469 posts against year-end 2002.
In early 2004, the restructuring programme featured the following:
343 posts shifted to TransFonD joint-stock company (24 posts from the head
office following the dissolution of Settlements Division and 319 posts from the
branches following the dissolution of Bank Settlements Offices);
the Macroeconomic Modelling and Forecasting Department, including 15 posts,
was established. The department is essential for the preparations ahead of
shifting to inflation targeting;

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34 posts were added to Statistics Department, Secretariat Department,


Accounting Department, and Security Division.
It may be asserted that, at present, the National Bank of Romania has a sufficiently
flexible and efficient structure, in step with the requirements of the European
Central Bank.

B. Challenges of shifting to a new monetary policy strategy


Considering the technical difficulties faced by the current strategy, i.e. monetary
aggregate targeting, the National Bank of Romania opted for shifting to inflation
targeting, possibly from 2005. This is a strategy used by central banks in developed
countries such as Canada, the United Kingdom, New Zealand, Sweden, and
transition countries, namely the Czech Republic, Poland and Hungary. Inflation
targeting implies, above all, the non-equivocal commitment to price stability as the
overriding objective of monetary policy while the other traditional objectives
(economic growth, higher external competitiveness, fiscal deficit financing or the
curtailment in unemployment) recede to the background. The basic features of
inflation targeting encompass a high degree of monetary policy transparency, as
communication with the public is vital for the successful implementation of such a
strategy, the increase in central bank accountability for attaining the inflation target
and taking monetary policy decisions based on forecasts generated by a
macroeconomic model.
The efficacy of inflation targeting hinges on the fulfilment of several institutional
prerequisites (central bank independence in using monetary policy tools, precedence
of the inflation target, harmonisation of fiscal and monetary policies, full-fledged
financial system, flexible exchange rate mechanism) and on satisfying some
technical requirements (the choice of an adequate price index, appropriate width of
the target band, optimum time horizon, viable inflation forecasting models, etc.).
Given the circumstances, at the request of the NBR executive management, during
1-9 April 2004, an IMF/World Bank mission proceeded to the analysis of the
central banks preparedness with a view to shifting to inflation targeting. The
teams recommendations envisaged the following:

130

the modelling and forecasting capacity of the National Bank of Romania;

incorporation of forecasts into monetary policy decisions (the response


function of the central bank);

organisation and management of resources at both head office and branches;

communication with the public.

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Chapter 9. Development of NBR functions

In light of the above-mentioned recommendations, the NBR Board is to take decisions


to pave the way for the implementation of the new monetary policy strategy.
The National Bank of Romania has been long concerned with the preparations to
shift to inflation targeting. Thus, several papers focusing on this issue were edited,
as follows:
intele alternative n orientarea politicii monetare, Cristian Popa Ph.D.
(Working Papers No. 9, May 2000);
Direct Inflation Targeting: A New Monetary Policy Strategy for Romania coordinated by Cristian Popa Ph.D. (Working Papers No. 10, April 2002);
intirea direct a inflaiei3 in Biblioteca Bncii Naionale collection, volume
32, September 2003;
Towards a New Monetary Policy Strategy: Inflation Targeting, Mugur Isrescu
Ph.D., October 2003;
intirea direct a inflaiei n Republica Ceh, Polonia i Ungaria:
implementare i performane, prepared in 2004 by a task group within the
Research and Publications Department.
As for the enhancement of the central banks inflation forecasting capacity, special
attention has been attached to the development of a structural model of the
Romanian economy, capable of capturing the monetary policy transmission
mechanism and conducive to medium-term projections. This will add to the present
toolkit, which encompasses univariate models for inflation forecasting by CPI
components and semi-structural models.
For inflation targeting to be successfully implemented, the half-yearly Inflation
Report (whose first edition was 1/2001) is yet another important element. Once
the new monetary policy strategy has been implemented, the role played by this
publication in keeping markets informed and anchoring inflation expectations is
envisaged to be enhanced by expanding the section dealing with the outlook for
inflation.
Moreover, the National Bank of Romania branches will help implement the
inflation targeting strategy. Their contribution consists in conducting the monthly
business surveys and, in the future, the surveys on inflation expectations of
businesses.

Comprising papers presented at the workshop conducted by the National Bank of Romania

National Bank of Romania

131

ORGANISATION CHART OF THE NATIONAL BANK


Audit Committee

BOARD

OF

GOVERNOR

Monetary Policy Committee

International Reserve
Management Committee

DEPUTY GOVERNOR
Cristian Popa

FIRST DEPUTY GOVERNOR


Emil Iota Ghizari

MONETARY POLICY DEPARTMENT


Director Teodor Buftea

MARKET OPERATIONS DEPARTMENT


Director Lia Rodica Tase

Monetary Analysis Division


Dorina Florena Antohi
Monetary Forecasting Division
Elena Alinta Neamu
EUROPEAN INTEGRATION AND INTERNATIONAL RELATIONS DEPT.

Monetary Policy Operations Division


erban Matei
State Treasury Operations Division
Mihail Orbona
International Reserve Management Division
Cristian George Muntean

Director Cezar Boel


European Integration Division
Gabriela Mihailovici
International Relations Division
Niculina Brebenel
RESEARCH AND PUBLICATIONS DEPARTMENT
Director Surica Rosentuler
Research Division
Elena Iorga
Publications Division
Aurora Petrean
Documentation and Library Division
Ion Soare
STATISTICS DEPARTMENT
Director Marian Mustrea
Deputy Director Constantin Chirca

BANK OPERATIONS DEPARTMENT


Director Ionel Niu
Issuance Division
Petru Horia Ozarchevici
Market Operations Performance Division
Simona erbnescu
Settlements Division

ACCOUNTING DEPARTMENT
Director Iulia Stanciu
Financial Division
Emilia Mihil
Accounting Division
Gabriela Mateescu
Financial Control Division

Statistical Reporting Division


Emil Vasile
Data Processing Division
Anica Lepdatu
Statistical Information and Analysis Division
Virgil Barbu tefnescu
IT DEPARTMENT
Director Ovidiu Dragomir
IT Systems Division
Simona Chiochiu
Network Administration Division
Tiberiu Prvulescu

Note: Colour patterns show the


132

OF ROMANIA - as of 31 December 2003


Statutory Audit Commission

DIRECTORS
Mugur Isrescu

Supervision Committee

DEPUTY GOVERNOR
Mihai Bogza
REGULATION AND LICENSING DEPARTMENT
Director Petre Tulin
Deputy Director Emilian Antonescu
Analysis and Strategy Division
Veronica Rducnescu
Prudential Regulation and Payment Systems Division
Oana Iuga
Licensing Division
Ana Cengher
Banking Risk Division
Adriana Neagoe
Accounting and Foreign Currency Regulation Division
Vasile Holobiuc
SUPERVISION DEPARTMENT
Director Nicolae Cintez
Deputy Director Adrian Cosmescu
Synthesis Division
Rodica Popa
Inspection Division I
Bogdan Viorel Marin
Inspection Division II
Lucreia Niculina Punescu
Inspection Division III
Elena Georgescu
LEGAL DEPARTMENT
Director Mihai Gheorghe Ionescu
Deputy Director Ianfred Silberstein
Legal Documentation and Advisory Opinion Division
Rodica Bdoiu
Contract Assistance and Disputed Claims Division
Maria Ponepal

BRANCHES
(19)

INTERNAL AUDIT DEPARTMENT


Director Ion Pduraru
General Audit Division (for departments and branches)
Radu Melica
IT Audit Division
Ioan Muntean
HUMAN RESOURCES DEPARTMENT
Director Cristian Punescu
Human Resources Management Division
Gabriela Florica Ariean
Professional Training Division
Gabriela Magdalena Ursoiu
SECRETARIAT
Director Ion Drgulin
Deputy Director Cristian Bichi
Board Secretariat Division
Bogdan Mdlin Mihai
Secretariat and Branches Co-ordination Division
Cornelia Mariana Chirindel
Protocol Division
Dumitru Roiu
Banking Correspondence Division
Stere Paris
Archives and Museum Division
Mihaela Tone
Public Information Division
Romulus Palade
Press Relations Division
Mugur Gabriel te
LOGISTICS DEPARTMENT
Director Dan Spiridon Florescu
Deputy Director Mihai Dsclescu
Acquisition and Procurement Division
Ghica Sasu
Transport Division
Dumitru Iordan
Logistics Division
Ctlin Alexandru Barbu
Running Repair and Maintenance Division
Bogdan Ion Cazacu
NBR Security Division
Traian Pometcu
NBR Club Management Division

departments' co-ordination
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Chapter 10. Other activities of the National Bank


of Romania
Human resources management
In 2003 as well, the rescaling of personnel that was aimed at matching the
organisational structure with the objectives and the tasks of the central bank, along
with staff upskilling and motivation of employees were the priorities of human
resource policy implemented by the NBR. This was part of the efforts made
towards the harmonisation with the domestic legislation and further structural
reforms in order to strengthen the NBR institutional capacity ahead of joining the
European Union.
Behind the relinquishment or retrenchment of some activities, in conjunction with
the reduction in the number of related posts 469 positions were axed off the
central banks staff scheme as compared with end-2002 stood the following:
transfer of the activities of assaying and hallmarking of precious metals to the
National Authority for Consumer Protection; concentration of treasury operations
in four regional centres and their removal from 18 branches; closure of three
branches in counties with poor bank network; removal of posts related to the
processing of forex receipt/payment forms; unification of technical services of the
National Bank of Romanias head office and the Bucharest Branch.
The readjustment of personnel scheme following the broadening of the scope of
activities or their growing more complex, such as bank inspections, entailed higher
demand for staff. Where the redistributed staff was not sufficient to cover demand
for personnel, candidates from outside the bank were recruited and selected, based
on their training and expertise, as well as on their potential detected during the
selection. In 2003, 22 examinations were organised and 74 persons, of which 50
university graduates, began working with the NBR head office.
Staff upskilling was based on a programme approved by the NBR Governor. The
priorities of the central bank translated into the drafting and implementation of this
programme which focused mainly on strengthening the Romanian banking system
and bringing it closer to European requirements, as well as on fulfilling the
convergence criteria and introducing the euro.
In order to achieve staff upskilling, training programmes offered by both domestic
institutions (especially the Romanian Banking Institute) and foreign institutions
(the central banks in the EU member states and international financial institutions)

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were resorted to. Operations personnel accounted for more than 85 percent of the
skilled staff.

Communication with the public


The National Bank of Romania increased its efforts to ensure greater transparency
of the monetary policy stance and its moves, as well as to provide information on
the developments in the financial and banking system and the domestic and
international economic environment.
To this end, the improvement of the contents, structure and layout of its
publications, as well as their diversification, made their role as a communication
tool gain in significance. Thus, the NBR was viewed as a more reliable and
complex data source. Moreover, part of the economic studies and analyses
prepared by the NBR staff and used in taking monetary policy decisions and laying
out medium- and long-term strategies have been included in the publications
released by the National Bank of Romania and posted on its website.
At present, the National Bank of Romania issues and disseminates 10 different
publications, most of them having an English version (both in paper-based and
electronic format) in order to facilitate the access to information of foreign
institutions and foreign natural and legal persons. The National Bank of Romania
has been providing the public with daily information on the key financial market
indicators and weekly analyses on the developments in those indicators. Press
releases concerning monetary aggregates, the balance of payments current account
and international reserves have been disclosed on a monthly basis.
The NBR website became the prime communication tool of the central bank, being
accessed nearly 50,000 times per day, thereby ensuring ready access to information
and statistical data. In 2003, the page on European Integration was added and
papers discussed at press conferences organised by the NBR or the papers
delivered by the NBR representatives on the occasion of different workshops or
international conferences were published. The NBR website is also available in
English.
In order to improve communication with and increase awareness of the public at
large, the central bank focused on organising conferences, workshops or book
releases. In June 2003, at the initiative and with the support of the Romanian
Economic Society (SOREC) and under the aegis of the Romanian Academy and
the National Bank of Romania, a workshop was organised for young Romanian
researchers who graduated abroad. On this occasion, 19 papers dealing with
aspects of Romanian economy from a European and international perspective were

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Chapter 10. Other activities of the National Bank of Romania

debated. The said papers were subsequently gathered in a volume titled New
Economists on the Transition in Romania. Amid preparations for inflation
targeting, in September 2003, the NBR organised a workshop in co-operation with
a group of economists from the International Monetary Fund and the Reserve Bank
of New Zealand, whose papers were published in a volume titled intirea direct
a inflaiei.
The National Bank of Romania also took into account other ways of
communication with the public. In 2003, pursuant to the provisions of Law No.
544/2001 on the free access to information of public interest, a significant number
of queries and petitions were settled and solved. Furthermore, the reading room of
the NBR archives was opened subsequent to the drawing-up and approval of the
Regulation on the access to the NBR archival documents. In 2003, steps were taken
to make the National Bank of Romanias archival documents known worldwide.

Information technology
The National Bank of Romania would fail to achieve its objectives without a safe
and efficient IT support. The central bank has developed a complex system of
local-area networks (LAN) and applications, which at present interconnects all
NBR departments and branches. Such networks are interconnected via encrypted
communication channels in a wide area network, including the head offices of
commercial banks, as well as other institutions of public interest.
In 2003, the IT sector development followed the guidelines of the NBR
Computerisation Strategy approved in 2002 and focused on the following:
replacement of obsolete servers and workstations, shift to the newest platforms and
adoption of volume licensing models for the software packages in use. The most
significant projects envisaged the computerisation of accounting activity at the
National Bank of Romanias head office and branches, the Payment Incident
Bureau, the Credit Information Bureau, the Bank Register and the Credit Cooperative Register.

Internal audit
The high significance of internal audit as a tool to analyse and assess all the
activities of the bank, mainly from the perspective of adequate risk management,
translated into the organisation by the dedicated department of a larger number of
audit missions as compared with the previous year.

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The audit missions focused on different types of audit departmental, thematic or


IT audit and their findings and recommendations were assumed by the
departments subject to auditing.
In the year under consideration, the departmental audit missions were carried out at
several NBR departments and at the Bucharest Branch with focus on checking the
main activities in relation to the associated risks.
The thematic audit missions checked the compliance with working procedures used
in preparing the monetary survey, surprise audit of treasury operations,
organisation and performance of the central banks purchases.
Moreover, IT audit missions were carried out with a view to analysing and
checking the activity of some organisational structures from the viewpoint of
information technology and communication.
For the purpose of developing the internal audit, several specific activities were
performed within the central bank such as preparation of the Methodological
Norms on carrying out internal audit within the NBR, co-operation with the Audit
Committee, methodological guidance of the banks organisational structures,
implementation of the International Monetary Funds recommendations on internal
audit, co-operation with KPMG, the banks independent auditor, training of
Internal Audit Department staff.

Legal activity
In the context of Romanias joining the EU, the achievement of commitments
taken with a view to strengthening the administrative capacity of the NBR and the
harmonisation of regulations on credit institutions with the acquis communautaire
led to the expansion of the legal activity in both quantitative and qualitative terms.
The Legal Department endorsed 88 draft legislative acts initiated by the NBR and
22 draft legislative acts submitted by other institutions. In order to assess
periodically the harmonisation of the Romanian banking legislation with the EU
Directives in the field, the co-operation with the European Central Bank has grown
tighter for the purpose of completing some related papers or drafting the Regular
Report.
As for the NBR relations with international financial institutions and the
strengthening of the banking system, 21 draft agreements, conventions and other
international documents, in the former case, and 38 licensing files, as well as
documents to impose penalties, in the latter case, were reviewed and endorsed.

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of Romania as of 31 December 2003
A. Balance sheet
The annual financial statements of the National Bank of Romania were compiled
based on the provisions of the following pieces of legislation:
Law No. 101/1998 on the Statute of the National Bank of Romania;
Law No. 82/1991 The Accounting Act, as subsequently amended and
supplemented;
The Chart of Accounts and the Methodological Norms specifying the use of
the National Bank of Romanias accounts; and
Guidelines of the Ministry of Public Finance regarding the actions to be
taken at the end of the financial year.
The balance sheet items as of end-2003 match the data recorded on the same date
in the trial balance of synthetic accounts, which are in line with the findings of
stocktaking.
For taxation purposes, the deduction of certain expenses (such as social and
protocol expenses) is limited to the percentage of profit set by law.
The balance sheet of the National Bank of Romania as of end-2003 was compiled
in accordance with the accounting principles regarding prudence, consistency,
ongoing concern, matching, intangibility of the opening balance sheet and non-setoff of assets against liabilities.
The National Bank of Romanias relations with the central and local public
authorities, international financial, banking, monetary and payments institutions,
the State Treasury, commercial banks operating in Romania and other financial
organisations are regulated by laws, Government decisions, ordinances and
emergency ordinances, orders issued by the Ministry of Public Finance, regulations
issued by the NBR, bilateral conventions and agreements.

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Underlying principles for drawing up the annual financial statements


a.

Separate disclosure of assets and liabilities.

b.

Assets for which depreciation and provisions were calculated are disclosed at net value.

c.

Interest accrued or due, receivable or payable, is disclosed next to the balance sheet item it is
calculated for.

d.

Fixed assets are disclosed at updated value pursuant to the revaluation performed on 31
December 2001 based on Government Decision No. 403/2000 on the revaluation of buildings,
constructions for special purposes and land.

e.

Maintenance and repair of tangible fixed assets are recorded as expenses, while refurbishment is
capitalised by adding the value of the renewal to the book value.

f.

All tangible fixed assets, except for land, are depreciated according to their useful lives. The
National Bank of Romania uses the straight-line depreciation method.

g.

No depreciation is calculated for fixed assets in progress.

h.

Stocks are recognised at cost and are written off by applying the weighted average cost or the
FIFO method, as appropriate.

i.

Stocks of gold and other precious metals are disclosed at book price.

j.

Pre-paid expenses and accrued revenues are disclosed as assets and liabilities respectively, in the
Adjustment account of the balance sheet.

k.

Foreign exchange-denominated assets and liabilities are revalued on a monthly basis at the
exchange rate set on the last working day of the month. Precious metals are revalued based on
the last AM fixing quotation on the London market of precious metals and on the ROL/EUR
exchange rate set on the same date with that of the balance sheet. The revaluation methodology
in relation to the International Monetary Fund was changed as of end-2002 in compliance with
the recommendation of KPMG, an independent audit company. Thus, the SDRs are revalued at
the exchange rates released by the International Monetary Fund on 30 April and 31 December.
All differences resulting from the revaluation of gold, SDRs, foreign exchange-denominated
assets and liabilities are recorded in the revaluation adjustment account, which increases or
decreases the special revaluation account at year-end (pursuant to Art. 44 of Law No. 101/1998).

l.

Interest revenues and expenses are recognised in the period they refer to, consistent with the
accrual accounting. Commissions and fees charged to customers are recorded as revenues when
the transactions are performed.

m. Tax expenses concern:


- profit tax (80 percent of taxable profit);
- wage tax;
- other taxes, duties and charges due.
Taxes are calculated, recorded and paid to the government budget in conformity with tax
regulations in Romania.

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Table 1. Balance Sheet of the National Bank of Romania


ASSETS
1. Cash and similar items
2. Precious metals and stones
3. Foreign assets
Interest receivable on gold deposits
Interest receivable on demand deposits
Interest receivable on time deposits
Interest receivable on securities
4. Securities
Interest receivable
5. Loans granted to banks
Interest receivable
Specific provisions for credit and interest losses
6. Other loans
Interest receivable
7. Interest receivable - total
8. Other assets
Provisions for other assets
Total

31/12/2002 31/12/2003 2003/2002


%
ROL bn.
ROL bn.
change
53.9
1,086.4
293,148.1
4.5
0.3
66.7
1,281.3
2,347.5
203.6
2,566.7
94.1

45.8
751.2
359,800.9
1.3
3.7
48.1
2,190.7
5.2
0.1
1,600.0
81.8

-15.0
-30.8
22.7
-71.1
1,133.3
-27.8
70.9
-99.8
-99.9
-37.6
-13.1

-445.7
14.4
43.1
1,633.0
7,055.2
-152.2
307,905.2

-402.8
11.4
40.0
2,305.0
5,894.4
-152.2
370,413.9

-9.6
-20.8
-7.2
41.1
-16.4
0.0
20.3

52,825.0
66,898.9
92.4
12.5
8,643.8
49.1
136,871.3
14.9
47.2
1,493.5
1,709.6
96.0
40,860.6
307,905.2

65,220.8
75,308.8
89.1
10.5
5,136.0
4.3
162,151.0
12.2
47.1
707.4
870.6
5,479.6
56,247.1
370,413.9

23.5
12.6
-3.6
-16.0
-40.6
-91.2
18.5
-18.1
-0.2
-52.6
-49.1
5,607.9
37.7
20.3

LIABILITIES
1. Notes and coins in circulation
2. Foreign liabilities
Interest payable on borrowings
Interest payable on SDR allocations by the IMF
3. Deposits of State Treasury
Interest payable
4. Banks' deposits with the NBR
Interest payable on required reserves
Interest payable on demand deposits
Interest payable on bank deposits
5. Interest payable total
6. Other liabilities
7. Capital, funds and reserves
Total

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Balance sheet as at 31 December 2003


As at 31 December 2003, total assets of the National Bank of Romania amounted
to ROL 370,413.9 billion. Foreign assets held the overwhelming share in total
assets, i.e. 97.1 percent, larger than that of foreign liabilities in total liabilities, i.e.
20.3 percent.
Table 2. Composition of Assets and Liabilities

Assets
- in foreign exchange
- in ROL
Liabilities
- in foreign exchange
- in ROL

31/12/2002
ROL bn. % in total
307,905.2
100.0
293,148.1
95.2
14,757.1
4.8
307,905.2
100.0
66,898.9
21.7
241,006.3
78.3

31/12/2003
ROL bn. % in total
370,413.9
100.0
359,800.9
97.1
10,613.0
2.9
370,413.9
100.0
75,308.8
20.3
295,105.1
79.7

2003/2002
change (%)
20.3
22.7
-28.1
20.3
12.6
22.4

Balance sheet assets


Table 3. Composition of Assets

Total assets
1. Foreign assets
2. Securities
3. Loans granted to banks
4. Precious metals
5. Fixed assets, stocks
6. Interest receivable
7. Other assets

31/12/2002
% in total
ROL bn.
307,905.2
100.0
293,148.1
95.2
2,347.5
0.8
2,566.7
0.8
1,086.4
0.3
2,474.7
0.8
1,633.0
0.5
4,648.8
1.6

31/12/2003
2003/2002
ROL bn.
% in total change (%)
370,413.9
100.0
20.3
359,800.9
97.1
22.7
5.2
0.0
-99.8
1,600.0
0.4
-37.6
751.2
0.2
-30.8
2,302.4
0.6
-6.9
2,305.0
0.7
41.1
3,649.2
1.0
-21.5

In 2003, foreign assets increased by ROL 66,652.8 billion, or 22.7 percent, given
that:
monetary gold stock consisting of ingots and coins at international standards
grew by 16.6 percent owing to revaluation of the gold stock at the price of
ROL 437,404 per gram at end-2003;
demand deposits went up ROL 752.6 billion, while time deposits fell by
ROL 78.4 billion;
SDR holdings with the International Monetary Fund dropped by ROL 67.4
billion due to payment of interest and commissions on borrowings from the
IMF;

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foreign securities were worth ROL 237,585.1 billion at end-2003, up


31 percent from 2002;
foreign equity investment stood at ROL 52,402.5 billion, up 6.7 percent year
on year. The National Bank of Romania had equity stakes in the
International Monetary Fund, the International Bank for Reconstruction and
Development, the Bank for International Settlements, the European Bank for
Reconstruction and Development, Multilateral Investment Guarantee
Agency and the International Financial Corporation.
The share of the item Securities in total assets edged down from 0.8 percent at
end-2002 to 0.001 percent at end-2003, owing to the coming to maturity of most
securities in the NBR portfolio. Their value contracted year on year from ROL
2,347.5 billion to ROL 5.2 billion.
In 2003, NBRs operations related to lending to banks consisted only of tracking
the unfolding of contracts previously concluded with the Bank Deposit Guarantee
Fund and Credit Bank.
At end-2003, specific provisions for credit and interest losses totalled ROL 402.8
billion.
Precious metals dropped 30.8 percent year on year due mainly to sales of gold in
the form of alloys and gold scraps on the foreign market, as well as to retrocessions
of gold to individuals in accordance with Law No. 261/2001.
Fixed assets and stocks (such as buildings, land, transport means, stocks and other
assets) diminished as a share in total assets from 0.8 percent in 2002 to 0.6 percent
in 2003, their value shrinking from ROL 2,474.7 billion to ROL 2,302.4 billion.
Balance sheet liabilities
Table 4. Composition of Liabilities

Total liabilities
1. Notes and coins in circulation
2. Foreign liabilities
3. Deposits of State Treasury
4. Banks' deposits
5. Capital, funds, reserves
6. Other liabilities

142

31/12/2002
ROL bn. % in total
100.0
307,905.2
52,825.0
17.2
66,898.9
21.7
8,643.8
2.8
136,871.3
44.5
40,860.6
1,805.6

13.3
0.5

31/12/2003
ROL bn. % in total
370,413.9
100.0
65,220.8
17.6
75,308.8
20.3
5,136.0
1.4
162,151.0
43.8
56,247.1
6,350.2

15.2
1.7

2003/2002
change (%)
20.3
23.5
12.6
-40.6
18.5
37.7
251.7

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The central banks liabilities expanded mainly on account of increases under


banks deposits with the NBR, capital, funds, reserves and foreign liabilities.
Notes and coins in circulation accounted for 17.6 percent of total liabilities. The
growth of notes and coins in circulation by ROL 12,395.8 billion against the
beginning of the year resulted mainly from the large volume of cash payments
generated by:
the rise in economy-wide minimum gross wage on 1 January 2003;
redundancy payments;
the pick-up in child benefit;
the indexation of the minimum guaranteed income by nearly 17 percent;
the increase in public sector wages in January and October 2003.
The financial obligations of the NBR towards the international financial institutions
were primarily the following:
SDR-denominated borrowings from the IMF equivalent to ROL 69,303.8
billion, up ROL 8,041.4 billion due to the drawings effected and the
SDR/ROL exchange rate movements;
deposits of the IBRD (ROL 815 billion) and of the Multilateral Investment
Guarantee Agency (ROL 4.9 billion);
demand deposits taken from central banks (ROL 1,378.6 billion);
borrowings from foreign banks (ROL 127.9 billion);
SDR-denominated allocations from the IMF totalling ROL 3,678.6 billion.
At end-2003, deposits of State Treasury came in at ROL 5,136 billion, or 1.4
percent of total liabilities, of which ROL 1,018.4 billion in ROL deposits and ROL
4,117.6 billion in foreign exchange deposits (EUR 94.6 million and USD 7
million).
Banks deposits with the NBR in the form of required reserves, deposits and other
holdings, taken by the central bank for monetary policy purposes, held 43.8 percent
of total liabilities.

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Table 5. Banks' Deposits with the NBR as at 31 December 2003


Balance as at
31/12/2002

Banks' reserves1
Required reserves in foreign exchange2
Banks' deposits3
Insolvent banks' accounts
Reserves blocked by the Court of Law
TOTAL

Balance as at
31/12/2003

2003/2002
% change

ROL bn.

ROL bn.

27,418.2
43,244.1
66,029.5
18.2
161.3
136,871.3

33,239.6

21.2

57,042.4
71,814.5
41.0
13.5
162,151.0

31.9
8.8
125.3
-91.6
18.5

Thirty-nine banks had accounts opened with the NBR as at end-2003


Tantamount to USD 1,734,955.5 thousand and EUR 11,954.8 thousand as at end-2003.
3
Twenty-seven banks held deposits with the NBR as at end-2003
2

The special revaluation account showed a balance of ROL 47,766 billion, including
the revaluation performed at end-2003 pursuant to Art. 44 of Law No. 101/1998.
At end-2003, net revaluation gains tantamount to ROL 24,805.7 billion were used
to cover the operational loss in amount of ROL 9,675.6 billion recorded in 2003,
the remainder being transferred to the Special Revaluation Account in accordance
with Art. 45 para. (2) of Law No. 101/1998.
The NBR share capital came in at ROL 172.4 billion at end-2003. Share capital,
reserves and own funds held 15.2 percent of total liabilities.
Other liabilities consisted primarily of State Treasury collections in amount of
ROL 5,392 billion covering the 29-31 December 2003 period. Pursuant to the
agreement concluded between the National Bank of Romania and the Ministry of
Public Finance, the respective amounts were entered in a settlement account,
whose balance was transferred to the Treasurys General Account on 5 January
2004.

B. Profit and loss account


1. The profit and loss account was compiled based on accounting records of
realised incomes and incurred expenses.

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Table 6. Profit and Loss Account


Balance
Balance
Balance 2003/2002
31/12/2002 31/2/2002 31/12/2003 change**
ROL bn. ROL bn. ROL bn.
(%)
updated*)
(1)
(2)
(3)
(4)
INCOMES
1. Operating incomes
Interest on credit lines
Incomes from commissions and fees
Incomes from ROL-denominated securities operations
(interest on government securities)
Interest and other incomes in foreign exchange
Incomes from operations with forex-denominated
securities
Incomes from operations with precious metals
Incomes from provisions
2. Other incomes
I. TOTAL (1+2)
EXPENSES
1. Operating expenses
Interest paid to banks and State Treasury
Interest and commissions on IMF loans
Interest and commissions in foreign exchange for NBR
borrowings from other sources and other expenses
in foreign exchange
Expenses for operations with forex-denominated
securities
Expenses for operations with ROL-denominated
securities
Currency issue expenses
Expenses for operations with precious metals
Losses from non-recoverable non-provisioned claims
Other expenses
2. Overheads
Staff costs
Other overheads
II. TOTAL EXPENSES (1+2)
III. Profit/loss (I - II)
IV. Revaluation gains****
V. Financial year result

10,731.2
360.1
1,228.2

12,373.1
415.2
1,416.1

9,941.3
151.5
1,385.7

-19.7
-63.5
-2.1

1,887.4
1,171.6

2,176.2
1,350.9

149.4
1,219.5

-93.1
-9.7

5,971.8
55.1
57.0
198.4
10,929.6

6,885.5
63.5
65.7
228.7
12,601.8

6,488.2
504.0
43.0
166.9
10,108.2

-5.8
693.7
-34.6
-27.0
-19.8

20,242.5
17,081.3
452.6

23,339.6
19,694.7
521.8

18,339.0
15,163.5
458.8

-21.4
-23.0
-12.1

781.7

901.3

691.3

-23.3

103.0

118.8

300.8

153.2

767.3
385.7
10.6

884.7
444.7
12.3

0.0
371.5
409.7

-100.0
-16.5
3,230.9

157.6

181.7

268.3

47.7

502.7
1,263.6
677.2
586.4
21,506.1

579.6
1,456.9
780.8
676.1
24,796.5

675.1***
1,444.8
779.9
664.9
19,783.8

16.5
-0.8
-0.1
-1.7
-20.2

-10,576.5
10,576.5

-12,194.7
12,194.7

-9,675.6
9,675.6

-20.7
-20.7

0.0

0.0

0.0

0.0

* updating coefficient based on average consumer price index for 2003, i.e. 15.3 percent
** column 3/column 2x100-100
*** of which commissions paid to TransFonD in amount of ROL 648,4 billion.
**** net gains tantamount to ROL 24 805,7 billion, following revaluation at end-2003,
of which ROL 9,675.6 billion were used in accordance with Art. 45 para. 2 of Law No. 101/1998.

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2. Analysis of incomes and expenses


As regards realised incomes, the following deserve mention:
incomes from operations in foreign exchange-denominated securities (ROL
6,488.2 billion, or 64.2 percent of total incomes) consisting of collected interest
and gains from sales of foreign exchange-denominated securities purchased at a
lower price;
interest on government securities in the portfolio of the National Bank of
Romania (ROL 149.4 billion, or 1.5 percent of total incomes);
incomes from interest on loans as well as from commissions and fees related to
interbank settlements (ROL 1,537.2 billion, or 15.2 percent of total incomes);
incomes in foreign exchange (ROL 1,219.5 billion, or 12.1 percent of total
incomes) consisting of interest on forex deposits (ROL 810.2 billion), exchange
rate gains (ROL 281.8 billion), interest on SDR holdings (ROL 38.7 billion) and
other incomes in foreign exchange (ROL 88.8 billion);
incomes from provisions (ROL 43 billion) stemming from the drop in provisions
set up for the loan to Credit Bank by the amount repaid in 2003; and
incomes from operations with precious metals (ROL 504 billion) consisting of
collected interest in gold (ROL 16.8 billion) and incomes from operations with
precious metals (ROL 487.2 billion).
According to the data shown in the profit and loss account as at 31 December 2003,
total expenses fell by 20.2 percent in real terms against 2002. Operating expenses
(relating to banking activity) accounted for 92.7 percent, or ROL 18,339 billion,
while overheads stood at 7.3 percent, or ROL 1,444.8 billion, of total expenses.
The main operating expenses incurred by the National Bank of Romania in 2003
were the following:
interest paid to banks and State Treasury worth ROL 15,163.5 billion, or 82.6
percent of operating costs, down 23 percent in real terms against 2002. Such
expenses encompassed the following:

146

interest paid on required reserves, which increased following the


expansion of reserves;

interest paid on banks deposits with the NBR; and

interest paid on the Treasurys General Account deposits;

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Chapter 11. Financial statements of the National Bank of Romania as of 31 December 2003

foreign exchange payments to the tune of ROL 691.3 billion for interest on
external borrowings, commissions, exchange rate losses, larger payments for
maintaining the subscription quota in domestic currency in IBRD capital (ROL
111.9 billion, or 0.6 percent of operating costs);
other operating expenses worth ROL 675.1 billion, or 3.7 percent of operating
costs, of which commissions paid to TransFonD totalled ROL 648.4 billion
according to the agency contract;
foreign exchange interest and commissions paid on borrowings from the IMF
equivalent to ROL 458.8 billion, or 2.5 percent of operating costs;
expenses arising from note printing and coin minting worth ROL 371.5 billion,
or 2 percent of operating costs;
losses from non-recoverable claims in amount of ROL 268.3 billion, or 1.5
percent of operating costs, representing the expenses incurred by the central
bank to recognise the fourth of the five tranches set forth by the NBR Boards
Decision based on Government Emergency Ordinance No. 49/2000 according to
which the obligation Banca Agricol had to repay the loans granted by the NBR
and to pay related interest was wiped off;
expenses on forex-denominated securities operations equivalent to ROL 300.8
billion, or 1.6 percent of operating costs;
expenses on operations with precious metals in amount of ROL 409.7 billion, or
2.2 percent of operating costs.
Overheads posted the following developments:
staff costs and related expenses remained relatively flat in real terms, amounting
to ROL 779.9 billion, or 3.9 percent of total expenses and 54 percent of
overheads respectively;
other overheads dropped by a real 1.7 percent to ROL 664.9 billion, or 3.4
percent of total expenses. Such outlays include depreciation charges, taxes,
material and procurement costs, expenses for works and services provided by
third parties, protocol, advertising and publicity expenses, and other costs.

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Table 7. Overheads
INDICATORS
- staff costs and related expenses
- other expenses except depreciation and taxes
- depreciation and taxes
Total

Nominal value
ROL bn.
2002
2003
677.2
779.9
358.3
452.5
228.1
212.4
1,263.6
1,444.8

% change
in real terms*
(2003/2002)
-0.1
9.5
-19.2
-0.8

*) by deflating the nominal change with the annual average inflation of 15.3 percent in 2003.

In drawing up the 2003 budget, the NBR Board took into consideration the
achievement of all NBR objectives set for the year in question, on the one hand,
and the projected developments in consumer prices, on the other.
Table 8. The 2003 Budget
INDICATORS
TOTAL INCOMES, of which :
Interest incomes in ROL
- loans
- government securities
Incomes from operations in foreign exchange
and with precious metals
Incomes from banking operations
Operating incomes
Incomes from provisions
TOTAL EXPENSES, of which :
Interest expenses in ROL
- current accounts
- banks' deposits
- deposits of State Treasury
Expenses for operations in foreign exchange
and with precious metals
Expenses for banking operations
Operating expenses
Losses from non-provisioned claims
PROFIT/LOSS

Projected

Achieved

8,420.2
300.9
151.5
149.4

10,108.1
300.9
151.5
149.4

Achieved/
Projected
%
120.0
100.0
100.0
100.0

ROL bn.

ROL bn.

6,662.0
1,335.5
61.8
60.0

8,211.6
1,486.2
66.4
43.0

123.3
111.3
107.4
71.7

19,841.1
15,164.1
2,238.0
11,650.1
1,276.0

19,783.7
15,163.5
2,237.9
11,650.0
1,275.6

99.7
99.9
99.9
99.9
99.9

1,853.9
1,056.8
1,498.1
268.2
-11,420.9

1,850.9
1,056.3
1,444.8
268.2
-9,675.6

99.8
99.9
96.4
100.0
84.7

The 2003 financial year ended on a loss of ROL 9,675.6 billion, accounting for
84.7 percent of the figure set in the 2003 budget (ROL 11,420.9 billion).
As at end-2003, the National Bank of Romania posted net gains from revaluation
amounting to ROL 24,805.7 billion. According to Art. 45 para. (2) of Law No.
101/1998 The NBR Act, this amount was used to cover the ROL 9,675.6 billion
loss resulted from the difference between incomes and expenses.

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Chapter 12. Objectives and guidelines of NBR policies


for 2004
In June 2003, the National Bank of Romania Strategy (2003-2006) was adopted.
This document sets out the guidelines needed to ensure the improvement of
institutional and operational framework of monetary policy and the development of
a sound banking system able to achieve successful integration into the EU financial
market and capable of introducing the European single currency.
In 2004, the NBR is to lay the groundwork for adopting inflation targeting. In
addition, the central bank will continue to be involved in the effective transposition
of the acquis communautaire into the Romanian legislation. The NBR has been
considering the strategic options concerning the switch to the euro, in terms of both
the preparatory work for taking part in negotiations relating to ERM2 membership
and the necessary measures to participate in Stage Three of EMU (introduction of
the euro). Moreover, the NBR has embarked upon a large-scale process with focus
on strengthening its institutional capacity to accomplish integration of the central
bank into the European System of Central Banks.
In 2004, the NBR will take the final steps to carry out the re-denomination of the
domestic currency in 2005. Furthermore, the central bank will provide human and
material resources with a view to implementing the electronic payment system.
The primary objective of macroeconomic policies for 2004 is to achieve an
inflation rate of 9 percent (December/December) that will pave the way for further
curbing inflation to 5 percent in 2006. The economic policies will provide an
underpinning to fulfilling this objective, as follows:
containment of the consolidated general government deficit to 3 percent of GDP
(subsequently revised to 2.1 percent of GDP);
moderate increase in the economy-wide minimum wage from ROL 2.5 million to
ROL 2.8 million and wage restrictions in the 72 state-owned companies
monitored in accordance with Government Emergency Ordinance No. 79/2001,
as amended by Government Decision No. 393/2004;
reduction of balance-of-payments current account deficit to less than 5.5 percent
of GDP and increase in the NBRs official reserves so as to ensure an adequate
level of months of import cover;
real decline in arrears and improvement of financial discipline;

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final steps for privatisation of state-owned companies included in the portfolio of


the Authority for Privatisation and Management of State Ownership and its
merger with the Bank Assets Resolution Agency; completion of privatisation of
several state-owned companies in the portfolio of the Ministry of Economy and
Commerce, i.e. SNP Petrom, Electrica Banat, Electrica Dobrogea; first steps for
privatisation of Distrigaz Nord and Distrigaz Sud.
The major risks monetary policy might face in pursuit of disinflation are the
following:
notable worsening of the balance-of-payments current account that might be
attributed to several factors (such as record-high oil prices, poor harvests, further
weak economic growth in Romanias main EU partners, etc.);
loosening of fiscal policy and/or wage policy in the context of the election year
alongside insufficient efficacy of instruments used to alleviate the pace of growth
in non-government credit;
financing of current account deficit from external borrowings amid steady or
even declining flows of foreign direct investment in the case the main abovementioned companies fail to be privatised;
downgrade of the country rating because of either domestic factors (failure to
conclude a new arrangement with the IMF, failure to obtain the formal EU
recognition for the functioning market economy status) or external factors
(bleaker global perception of transition economies).
In order to avoid the risk of speculative capital inflows driven by the still large
differential between the interest rates on ROL- and foreign-exchange-denominated
deposits, the National Bank of Romania decided to delay the liberalisation of
operations in ROL-denominated deposit accounts opened by non-residents for
April 2005. After the cut-off date, the Romanian authorities and the European
Commission will assess if another extension is necessary.
Given the poor efficacy of the monetary targeting strategy (caused by high
volatility of money multipliers and money velocity), the NBR opted for switching
to inflation targeting, possibly in 2005. To this end, the authorities asked for IMF
support, which materialised in an Aide-mmoire drafted by an IMF mission in April
2004. The main recommendations address some aspects relating to macroeconomic
modelling, communication with the public, and implementation of inflation
targeting. With a view to improving its forecasting capacity, the central bank
established the Macroeconomic Modelling and Forecasting Department which
became operational in April 2004, and strengthened ties with the other central
banks that have already adopted inflation targeting, i.e. the National Bank of

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Poland and the Czech National Bank. In addition, changes in both organisational
and institutional terms are needed to allow, for instance, the staff of NBR branches
to get involved much more actively in assessing and influencing inflation
expectations of the general public in a transparent manner.
In the context of negotiations on Chapter 11 Economic and Monetary Union, the
task group comprising professionals of the Ministry of Public Finance and the
National Bank of Romania formulated in 2003 the draft law amending Law No.
101/1998 on the Statute of the National Bank of Romania. The proposed
amendments ensure full transposition of the provisions of the acquis
communautaire in the field and reinforcement of the institutional framework
needed to implement the new monetary policy regime, namely unequivocally
setting the statutory objective of the NBR, i.e. price stability, ensuring institutional,
personal and financial independence for the central bank, prohibiting direct
financing of public institutions. Thus, once the amendment of Law No. 101/1998
on the Statute of the National Bank of Romania was passed, the Romanian central
bank will be operating within a system compatible with that of the European
Central Bank and the European System of Central Banks.
Several pieces of legislation weighing heavily on the activity of credit institutions
were issued in early 2004, as follows:
Regulation No. 1/2004, issued by the National Bank of Romania, on foreign
currency operations, which lays down that licensing of some foreign currency
operations is no longer required, and that the procedure and documents required
for licensing are simplified;
Order No. 263/2/2004 issued by the Ministry of Public Finance and the National
Bank of Romania, which stipulates that credit institutions must draw up financial
statements in compliance with the provisions of International Financial Reporting
Standards starting with 2005 financial year;
Ordinance No. 10/2004 issued by the Government of Romania on winding-up
and legal reorganisation of credit institutions, which ensured that Directive
2001/24/EC on the reorganisation and winding-up of credit institutions was
transposed into Romanian legislation.
The following significant pieces of legislation are to be issued later in the year:

the Norms regulating market risk, applicable to credit institutions, which will
ensure that the provisions of Directive 93/6/EEC on capital adequacy of
investment firms and credit institutions are transposed into Romanian banking
legislation;

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the Norms on principles of supervision on a consolidated basis of credit


institutions.

Furthermore, the process of laying-out the possible scenarios for joining the euro
zone has entered the focus of attention of NBR experts. Thus, Romania might join
ERM2 in the time-horizon 2009-2011 and introduce the euro between 2011-2013,
conditional on the progress towards achieving nominal and real convergence.
As for the re-denomination of the domestic currency, the Ministry of Public
Finance and the National Bank of Romania prepared a draft law that was approved
by Government on 18 May 2004 and subsequently submitted to Parliament. The
draft law sets forth that re-denomination starts on 1 July 2005 and the conversion
rate is set at 1:10,000. In order to preclude a bout of inflation likely to be triggered
by the rounding up of prices, the bill provides for the dual display of prices, for a
given timeframe. Moreover, in an effort to stifle certain negative psychological
effects on the public at large, the two types of legal tender shall enjoy dual
circulation for as long as 1 years; after 1 January 2007, the change of old notes
shall be made solely by the NBR without any time limit. Re-denomination will
imply an all-out effort in terms of organisation, logistics, and communication with
the general public, and will mark the end of the high-inflation era.
The electronic payment system to be completed in 2004 Q4 will be operated by
TransFonD joint-stock company, which has as shareholders the NBR and
commercial banks, with one third and two thirds of share capital respectively. The
newly-developed payment system will encompass three components, namely the
real time gross settlement system for large-value payments, the automated clearing
house for small-value payments, and the government securities registration and
settlement system.
Once the electronic payment system has become operational, it will be one of the
most state-of-the-art payment systems in Central and Eastern Europe and will be
fully compatible with similar systems of EU member states.

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Banks in Romania as of 31 December 2003


No.

Bank
National Bank of Romania

Head Office
Bucharest, Str. Lipscani nr.25,
sector 3

Capital Type

Licensing Date *

state-owned capital

Central Bank of
Romania

I BANKS - ROMANIAN LEGAL ENTITIES (joint-stock companies)


I.1 Banca Comercial Romn

Bucharest, Bd. Regina Elisabeta nr.5, majority state-owned


sector 3
capital

1990

I.2 Raiffeisen Bank

Bucharest, Bd. Mircea Vod nr.44,


bl. M17, tronson II, sector 3

majority foreign
capital

1990

majority foreign
capital

1990

majority domestic
private capital

1990

I.3 Banca Romn pentru Dezvoltare Bucharest, Bd. Ion Mihalache


(BRD)
nr. 1-7, sector 1
I.4 Banca pentru Mic Industrie i
Liber Iniiativ (MINDBANK)

Bucharest, Calea Griviei


nr.24, sector 1

I.5 Banca Comercial


"Ion iriac"

Bucharest, Str. Nerva Traian


nr.3, bl. M101, sector 3

majority foreign
capital

1991

I.6 Banc Post

Bucharest, Bd. Libertii nr.18-22,


bl.102, 103, 104, sector 5

majority foreign
capital

1991

I.7 Eurom Bank

Bucharest, Bd. Aviatorilor


nr. 45, sector 1

majority foreign
capital

1991

I.8 Banca de Export-Import a


Romniei (EXIMBANK)

Bucharest, Splaiul Independenei


nr.15, sector 5

majority state-owned
capital

1992

I.9 Finansbank (Romania)

Bucharest, Splaiul Unirii nr.12,


bl. B6, sector 4

majority foreign
capital

1993

I.10 Banca Romneasc

Bucharest, Bd. Unirii nr.35,


bl. A3, sector 3

majority foreign
capital

1993

I.11 Alpha Bank (Romania)

Bucharest, Calea Dorobanilor


nr. 237B, sector 1

majority foreign
capital

1994

I.12 Banca Transilvania

Cluj-Napoca,
Str. George Bariiu nr. 8

majority domestic
private capital

1994

I.13 Banca de Credit i Dezvoltare


ROMEXTERRA

Trgu Mure,
Bd. "1 Decembrie 1918" nr. 93

majority domestic
private capital

1994

I.14 ABN AMRO Bank (Romania)

Bucharest, P-a Montreal nr.10,


World Trade Center, unit.2.23,
sector 1

majority foreign
capital

1995

I.15 Banca Comercial ROBANK

Bucharest, Bd. Unirii nr.59, sector 3

majority foreign
capital

1995

I.16 Piraeus Bank (Romania)

Bucharest, Bd. Carol I


nr.34-36, et. VI, sector 2

majority foreign
capital

1995

I.17 Citibank (Romania)

Bucharest, Bd. Iancu de Hunedoara


nr.8, sector 1

majority foreign
capital

1996

I.18 NOVA BANK

Bucharest, Bd. Dimitrie Cantemir nr.2,


bl. P3, tronson II, sector 4

majority foreign
capital

1996

*) It refers to the initial licensing data; the name and shareholding of some banks were changed (Bank
Register, www.bnro.ro).

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Banks in Romania as of 31 December 2003
Capital Type

Licensing Date *

I.19 Banca Comercial SANPAOLO


IMI Bank (Romania)

No.

Arad, Str. Revoluiei nr.88

majority foreign
capital

1996

I.20 Banca Romn pentru Relansare


Economic LIBRA BANK

Bucharest, Bd. Aviatorilor nr.46,


sector 1

majority foreign
capital

1996

I.21 EMPORIKI BANK (Romania)

Bucharest, Str. Berzei


nr.19, sector 1

majority foreign
capital

1996

I.22 Banca Daewoo (Romania)

Bucharest, Bd. Unirii nr. 55,


bl. E4a, tronson 1, sector 3

majority foreign
capital

1997

I.23 UniCredit (Romania)

Bucharest, Splaiul Unirii nr.16,


sector 4

majority foreign
capital

1997

I.24 HVB Bank (Romania)

Bucharest, Str. Grigore Mora


nr. 37, sector 1

majority foreign
capital

1998

I.25 Romanian
International Bank

Bucharest, Bd. Unirii nr. 68, bl. K2,


sector 3

majority foreign
capital

1998

I.26 Egnatia Bank (Romania)

Bucharest, Str. General Constantin


Buditeanu nr. 28C, P+1, sector 1

majority foreign
capital

1998

I.27 Casa de Economii i


Consemnaiuni (CEC)

Bucharest, Calea Victoriei nr.13,


sector 3

state-owned capital

1999

I.28 Banca Comercial Carpatica

Sibiu, Bd. Mihai Viteazu, bl.42

majority domestic
private capital

1999

I.29 Volksbank (Romania)

Bucharest, os. Mihai Bravu


nr. 171, sector 2

majority foreign
capital

2000

I.30 Banca de Microfinanare (MIRO) Bucharest, Str. Fgra nr. 6,


sector 1

majority foreign
capital

2002

II

Bank

Head Office

BANKS - FOREIGN LEGAL ENTITIES (branches)

II.1 Frankfurt Bukarest Bank AG,


Frankfurt am Main
- Bucharest branch -

Bucharest, Bd. Carol I


nr.34-36, sector 2

1979

II.2 MISR Romanian Bank, Cairo


- Bucharest branch -

Bucharest, Bd. Unirii nr.66,


bl.K3, sector 3

1987

II.3 Banque Franco-Roumaine, Paris


- Bucharest branch -

Bucharest, P-a Charles de Gaulle


nr.3-5, sector 1

1990

II.4 ING Bank N.V., Amsterdam


- Bucharest branch -

Bucharest, os. Kiseleff


nr.11-13, sector 1

1994

II.5 National Bank of Greece, Athens


- Bucharest branch -

Bucharest, Splaiul Unirii nr.4,


bl. B3, tronson 2-3, sector 4

1996

II.6 Banca Italo-Romena S.p.a.,


Treviso, Italy
- Bucharest branch -

Bucharest, Bd. Dimitrie Cantemir


nr. 1, bl. B2, sc. 2, sector 4

1996

II.7 GarantiBank International N.V.


- Bucharest branch -

Bucharest, Str. Paris nr.30, sector 1

1998

II.8 Banca di Roma S.p.a., Italy


- Bucharest branch -

Bucharest, Str. Dr. Staicovici nr. 75,


sector 5

2000

*) It refers to the initial licensing data; the name and shareholding of some banks were changed (Bank
Register, www.bnro.ro).

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Annexes

National Bank of Romania publications


as of 31 December 2003
1. Annual Report
2. Annual Report on Balance of Payments and International Investment
Position of Romania
3. Inflation Report
4. Monthly Bulletin
5. Business Survey
6. National Accounts
7. Working Papers
8. Restitutio
9. Occasional Papers
10. Cristian Popiteanu Banking History and Civilisation Symposium

Main papers submitted to Parliament


by the National Bank of Romania
in 2003
1. Annual Report for 2002
2. Monthly Bulletins for 2003
3. Annual Report on Balance of Payments and International Investment
Position of Romania for 2002

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2003

Main rules and regulations adopted in the economic,


financial, and banking areas in 2003

Government Decision No. 54/16 January 2003 approves the Methodological


Norms for the enforcement of Government Ordinance No. 7/2001 on income tax
(Monitorul Oficial al Romniei No. 83/11 February 2003).
Order No. 52/22 January 2003 issued by the Minister of Public Finance sets the
annual tax schedule and the basic tax deduction to calculate the annual income tax
for fiscal 2002 (Monitorul Oficial al Romniei No. 41/24 January 2003).
Government Decision No. 64/23 January 2003 approves the budget-funded grantin-aid mechanisms for the implementation of the Export Drive Programme under
the management of Foreign Trade Department (Monitorul Oficial al Romniei No.
97/17 February 2003).
Government Decision No. 67/23 January 2003 approves the amendment agreed
upon through the exchange of letters made in Bucharest on 23 September 2002 and
in Zagreb on 11 October 2002 between the Government of Romania and the
International Bank for Reconstruction and Development for the funding of the
Mine Closure and Social Impact Mitigation Project worth USD 44.5 million,
signed in Bucharest on 13 October 1999 (Monitorul Oficial al Romniei No. 99/18
February 2003).
Government Decision No. 74/23 January 2003 sets the level of subsidised
insurance premiums granted to farmers (Monitorul Oficial al Romniei No. 78/6
February 2003).
Order No. 16/24 January 2003 issued by the Minister of Communications and
Information Technology sets the endorsement procedure for remote access
payment instruments such as Internet- and home-banking applications (Monitorul
Oficial al Romniei No. 107/20 February 2003).
Government Ordinance No. 19/30 January 2003 stipulates the obligation of
implementing and using the data collection e-system. It puts in place the general
framework for preparing the implementation of the data collection e-system and

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sets the institutions and their responsibilities in this field (Monitorul Oficial al
Romniei No. 61/1 February 2003).
Government Ordinance No. 36/30 January 2003 ensures correlation between
some provisions in the financial and tax legislation (Monitorul Oficial al Romniei
No. 68/2 February 2003).
Press Release of 6 February 2003 issued by the Bank Deposit Guarantee Fund
raises the ceiling on the guaranteed household deposits with credit institutions
banks and credit co-operatives from ROL 109,795,000 to ROL 118,469,000 per
depositor, natural entity. The ceiling is valid for 2003 H1 (Monitorul Oficial al
Romniei No. 77/6 February 2003).
Order No. 188/1/11 February 2003 issued by the Minister of Public Finance and
the NBR Governor approves the change and supplementation of Accounting
Regulations harmonised with Directive 86/635/EEC and the International
Accounting Standards applicable to credit institutions, as well as the change and
supplementation of the Chart of Accounts for banks and the methodological norms
for its use (Monitorul Oficial al Romniei No. 227/4 April 2003).
Order No. 121/20/12 February 2003 issued by the President of the National
Regulatory Authority in the Natural Gas Sector and the President of the National
Agency for Mineral Resources approves the regulated prices, effective 1 March
2003, in the natural gas sector (Monitorul Oficial al Romniei No. 93/14 February
2003).
Government Decision No. 160/13 February 2003 approves the Action Plan for
2003 and 2004 of the Government Programme (Monitorul Oficial al Romniei No.
162/13 March 2003).
Order No. 199/17 February 2003 issued by the Minister of Public Finance
approves the Instructions on prevention and control of money laundering, through
the units of the State Treasury (Monitorul Oficial al Romniei No. 143/5 March
2003).
Order No. 35/19 February 2003 issued by the Minister for Small- and Mediumsized Enterprises and Co-operation approves the Procedure for Implementation of
the Multiannual National Programme for 2002-2005 supporting small- and

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medium-sized enterprises to boost exports (Monitorul Oficial al Romniei No.


146/6 March 2003).
Government Decision No. 187/20 February 2003 approves the budget-funded
grants-in-aid to be extended to farmers in the vegetable sector in 2003 in order to
increase output and quality indexes of farm produce (Monitorul Oficial al
Romniei No. 133/28 February 2003).
Government Decision No. 218/27 February 2003 stipulates the indexation of
pensions in the public sector pension scheme, of military pensions and of some
household incomes as from March 2003. The value of a pension point shall be
subject to a 3.5 percent indexation (Monitorul Oficial al Romniei No. 144/5
March 2003).
Order No. 51/4 March 2003 issued by the Minister for Small- and Medium-sized
Enterprises and Co-operation approves the Implementation Procedure of the
National Multiannual Programme for 2002-05 to underpin investment of newlyestablished enterprises and micro-enterprises, as well as investment for
streamlining/retooling of small- and medium-sized enterprises (Monitorul Oficial
al Romniei No. 245/10 April 2003).
Order No. 7/10 March 2003 issued by the President of the National Securities and
Exchange Commission approves Instructions No. 1/2003 on authorising securities
trusts as financial investment services companies (Monitorul Oficial al Romniei
No. 178/21 March 2003).
Law No. 76/12 March 2003 changes and supplements the provisions of Law No.
32/2000 concerning insurance companies and the supervision of insurance
(Monitorul Oficial al Romniei No. 193/26 March 2003).
Order No. 387/27 March 2003 issued by the Minister of Public Finance sets the
interest rate on time deposits with the State Treasury. Thus, as from 1 April 2003,
the interest rate on one-month deposits shall be 9 percent per annum while the
interest rate on three-month deposits shall be 10 percent per annum (Monitorul
Oficial al Romniei No. 222/3 April 2003).

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Order No. 10/31 March 2003 issued by the President of the National Electricity
and Heating Regulatory Authority approves the prices for electricity delivered to
lock-in consumers, average prices for transport and distribution services, and the
wholesale market management price applied by the companies active in the energy
sector. The new prices shall be effective as from 13 April 2003 (Monitorul Oficial
al Romniei No. 239/8 April 2003).
Order No. 73/4 April 2003 issued by the Minister for Small- and Medium-sized
Enterprises and Co-operation alters the provisions of Order No. 36/2003 issued by
the Minister for Small- and Medium-sized Enterprises and Co-operation regarding
the approval for the Implementation Procedure of the National Multiannual
Programme for 2002-05 to underpin the access of small- and medium-sized
enterprises to training and consulting services (Monitorul Oficial al Romniei No.
261/15 April 2003).
Order No. 74/4 April 2003 issued by the Minister for Small- and Medium-sized
Enterprises and Co-operation alters the provisions of Order No. 35/2003 issued by
the Minister for Small- and Medium-sized Enterprises and Co-operation regarding
the approval for the Implementation Procedure of the Multiannual National
Programme for 2002-2005 to support small- and medium-sized enterprises in
boosting exports (Monitorul Oficial al Romniei No. 248/10 April 2003).
Order No. 454/4 April 2003 issued by the Minister of Public Finance sets at 14
percent per annum the interest rate on Treasury certificates converted into time
deposits with the State Treasury as from 7 April 2003 (Monitorul Oficial al
Romniei No. 246/10 April 2003).
Government Emergency Ordinance No. 23/10 April 2003 alters and supplements
the provisions of Law No. 19/2000 concerning the public pension system and other
social security benefits, and alters Articles II and III of Government Emergency
Ordinance No. 9/2003 (Monitorul Oficial al Romniei No. 259/14 April 2003).
Order No. 3106/17 April 2003 issued by the President of the Insurance
Supervisory Commission alters and supplements the provisions of the Norms on
the lower bound for paid-up capital, i.e. the free reserve paid-up fund of insurers,
enforceable via Order No. 6/2002 issued by the President of the Insurance
Supervisory Commission (Monitorul Oficial al Romniei No. 276/19 April 2003).

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Government Emergency Ordinance No. 28/18 April 2003 lays down the
procedure for selling equity stakes in Banca Comercial Romn joint-stock
company. Accordingly, the Authority for Privatisation and Management of State
Ownership is vested with the power to sell equity stakes in Banca Comercial
Romn joint-stock company to the European Bank for Reconstruction and
Development and the International Financial Corporation, as well as to the
Employees Association of Banca Comercial Romn joint-stock company
(Monitorul Oficial al Romniei No. 289/25 April 2003).
Government Emergency Ordinance No. 34/17 May 2003 alters and supplements
Law No. 390/2002 on the establishment, organisation and operation of the
Romanian Agency for Foreign Investment (Monitorul Oficial al Romniei No.
354/23 May 2003).
Order No. 23/20 May 2003 issued by the President of the National Securities and
Exchange Commission approves Regulation No. 3/2003 on licensing and
functioning of investment companies, open-end investment trusts, investment trusts
and depositories (Monitorul Oficial al Romniei No. 437/19 June 2003).
Government Decision No. 553/21 May 2003 alters and supplements the Statute of
the Savings Bank (C.E.C.) joint-stock company, as approved by Government
Decision No. 1602/2002 (Monitorul Oficial al Romniei No. 370/30 May 2003).
Government Decision No. 571/21 May 2003 refers to government borrowings, by
the agency of the Ministry of Public Finance, in amount of EUR 500 million by
launching a 7-year Eurobond issue at discount on the international capital markets.
The issue shall be managed by a consortium of investment banks comprising
Citigroup, Deutsche Bank, JP Morgan, and UBS Warburg (Monitorul Oficial al
Romniei No. 370/30 May 2003).
Government Decision No. 586/21 May 2003 approves the 2003 Action Plan for
development of the business environment in Romania. The Plan encompasses the
steps to be taken and sets forth the institutions in charge of implementing them, as
well as the deadlines on fulfilment of tasks (Monitorul Oficial al Romniei No.
387/5 June 2003).
Order No. 317/26 May 2003 issued by the Minister of Industries and Resources
sets the calculation method for the average weighted purchase price for natural gas

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imported in 2002, applicable at sale of domestically-produced natural gas in 2003


(Monitorul Oficial al Romniei No. 376/2 June 2003).
Government Emergency Ordinance No. 38/29 May 2003 ratifies the
amendments to the Stand-By Arrangement between Romania and the International
Monetary Fund, agreed through the Letter of the Romanian party dated 17 October
2001 and the Decision of the IMFs Executive Board on 31 October 2001, as
amended and supplemented subsequently, as well as the Additional Memorandum
on Economic and Financial Policies and the Additional Technical Memorandum of
Understanding, agreed in Bucharest and Washington D.C. through the Letter of the
Romanian party dated 9 April 2003 and the Decision of the IMFs Executive Board
on 25 April 2003 (Monitorul Oficial al Romniei No. 396/9 June 2003).
Government Decision No. 614/29 May 2003 sets the indexation of public system
pensions, pensions of the military, and some household incomes as from June
2003. The value of a pension point is index-linked by 2.7 percent (Monitorul
Oficial al Romniei No. 392/6 June 2003).
Law No. 251/10 June 2003 approves the ceiling on domestic public indebtedness
of Romania for 2003 to the amount of ROL 34,643.8 billion, which may be raised
by adding the amounts left unused from the ceiling on external public indebtedness
for 2003 (Monitorul Oficial al Romniei No. 414/13 June 2003).
Government Emergency Ordinance No. 53/12 June 2003 sets the interest-rate
subsidy related to mortgage loans for houses built via the National Housing
Agency (NHA). The Ministry of Public Works, Transports and Housing shall
grant, via the NHA, a subsidy of up to 4 percentage points from the interest rate
charged to mortgage loan recipients who purchase houses built under NHA
programmes, to the limit set forth in this respect by the annual government budget
(Monitorul Oficial al Romniei No. 452/25 June 2003).
Order No. 498/76/16 June 2003 issued by the President of the National Authority
for Regulation in the Natural Gas Sector and the President of the National
Authority for Mineral Resources approves the prices and sets the regulated prices
for natural gas effective 1 July 2003 (Monitorul Oficial al Romniei No. 424/17
June 2003).

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Government Decision No. 710/20 June 2003 alters Art. 1 in Government Decision
No. 571/2003 as regards borrowings from the international equity markets.
Accordingly, the Government of Romania by the agency of the Ministry of Public
Finance will launch a 7-year Eurobond issue to the amount of EUR 700 million
(Monitorul Oficial al Romniei No. 456/26 June 2003).
Government Emergency Ordinance No. 57/25 June 2003 alters and supplements
Government Emergency Ordinance No. 158/2001 on the excise regime, as well as
other pieces of legislation. Thus, excise duties levied on alcohol, spirits, and
alcoholic beverages, tobacco products, and mineral oils are subject to alteration
(Monitorul Oficial al Romniei No. 461/28 June 2003).
Government Decision No. 724/28 June 2003 alters the Appendix to Government
Decision No. 1493/2002 concerning the exemption and temporary rebate of import
duties on some goods. Subject to alteration are customs duties levied on some
varieties of beef, pork, as well as cattle and swine entrails. The provisions are in
force during 1 July - 31 December 2003 (Monitorul Oficial al Romniei No.
467/30 June 2003).
Government Decision No. 731/28 June 2003 lays down the implementation of the
fourth stage of public pension realignment in July 2003 (Monitorul Oficial al
Romniei No. 479/4 July 2003).
Order No. 815/2 July 2003 issued by the Minister of Public Finance approves the
Accounting Reporting System for businesses as of 30 June 2003. It encompasses
methodological norms governing preparation, review and centralisation of
businesses accounting reports as of 30 June 2003, the correlation within and
between accounting reporting forms as of 30 June 2003 (Monitorul Oficial al
Romniei No. 518/17 July 2003).
Government Decision No. 762/3 July 2003 amends the Regulation on
organisation and operation of the National Office for Prevention and Control of
Money Laundering, as approved by Government Decision No. 479/2002
(Monitorul Oficial al Romniei No. 494/9 July 2003).
Government Decision No. 772/3 July 2003 approves the Privatisation Strategy for
Banca Comercial Romn joint-stock company. It sets the procedure and the
privatisation method to be resorted to, as well as the equity interests to be acquired

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by either legal or natural persons in Banca Comercial Romn joint-stock


company (Monitorul Oficial al Romniei No. 506/14 July 2003).
Law No. 314/8 July 2003 alters the provisions of Art. 15 of Law No. 500/2002 on
public finance referring to the limits on lowering budget revenues and raising
budget expenditures (Monitorul Oficial al Romniei No. 506/14 July 2003).
Government Decision No. 829/10 July 2003 establishes a 45 percent import duty
as a safeguard measure for pork imports from the Polish Republic (Monitorul
Oficial al Romniei No. 520/18 July 2003).
Government Emergency Ordinance No. 67/10 July 2003 lays down the increase
in public pensions resulting from the farmers social protection scheme. Thus, as
from 1 January 2004, the average annual number of points relative to the public
pensions paid out or due on 31 December 2003, as arising from the farmers social
protection scheme, shall be raised by 100 percent (Monitorul Oficial al Romniei
No. 507/15 July 2003).
Order No. 388/41874/18 July 2003 issued by the Minister of Agriculture, Forests,
Water and the Environment and the Minister of Public Finance approves a ROL
4,500 export incentive for each kilogram of poultry of some ranges for all
destinations, bar EU member states. The export drive shall be paid for the
merchandise delivered and paid for until 31 December 2003, to the amount of
5,000 tonnes (Monitorul Oficial al Romniei No. 540/28 July 2003).
Press Release of 21 July 2003 issued by the Bank Deposit Guarantee Fund
regarding the raising of the ceiling on the guaranteed household deposits with
credit institutions from ROL 118,469,000 to ROL 125,222,000 per depositor. The
ceiling is valid for 2003 H2 (Monitorul Oficial al Romniei No. 524/21 July 2003).
Order No. 4/24555/5 August 2003 issued by the Governor of the National Bank of
Romania and by the President of the National Institute of Statistics sets the official
ROL/USD exchange rates for 1945-1989 pursuant to Emergency Ordinance No.
184/2002 for amending and supplementing Law No. 10/2001 on the legal regime
of some buildings abusively seized during 6 March 1945 - 22 December 1989 and
for laying down the measures to accelerate its entering into force as well as the
enforcement of Emergency Ordinance No. 94/2000 on the retrocession of buildings

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that were owned by religious denominations in Romania (Monitorul Oficial al


Romniei No. 576/12 August 2003).
Order No. 594/141/7 August 2003 issued by the Presidents of the National
Regulatory Authority in the Natural Gas Sector and of the National Agency for
Mineral Resources approves natural gas prices and sets the regulated tariffs
effective as from 1 September 2003 (Monitorul Oficial al Romniei No. 586/18
August 2003).
Order No. 22/20 August 2003 issued by the President of the Romanian Electricity
and Heating Regulatory Authority approves the prices for electricity delivered to
lock-in consumers as from 1 September 2003 (Monitorul Oficial al Romniei No.
602/25 August 2003).
Government Emergency Ordinance No. 72/22 August 2003 lays down an aid
worth ROL 2 million per hectare for farmers in the 2003-2004 agricultural year for
each plot of farmland smaller than or equal to 5 ha (Monitorul Oficial al Romniei
No. 610/28 August 2003).
Government Decision No. 1006/22 August 2003 sets the indexation of public
sector pensions, pensions of the military, and of some household incomes starting
September 2003. The value of a pension point shall be subject to 2.65 percent
indexation (Monitorul Oficial al Romniei No. 618/30 August 2003).
Order No. 24/26 August 2003 issued by the President of the Romanian Electricity
and Heating Regulatory Authority approves the heating prices applied by
Termoelectrica, the electricity and heating production company, and its branches
as from 1 September 2003 (Monitorul Oficial al Romniei No. 614/29 August
2003).
Government Ordinance No. 76/28 August 2003 amends Emergency Ordinance
No. 36/2001 governing the regime of regulated prices set upon sanction from the
Competition Council. Thus, the adjustment of prices for the transport of domestic
and foreign crude oil and petroleum products through the main pipelines,
international basic telephony services, international basic postal services and
medicines for human use shall be made based on the average ROL/USD exchange
rate in the first 20 days of the month for which the adjustment is required,
calculated on the basis of data supplied by the National Bank of Romania.

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Moreover, the price of heavy water shall be adjusted consistent with the
consumer price index (Monitorul Oficial al Romniei No. 619/30 August 2003).
Government Ordinance No. 87/28 August 2003 on 2003 government budget
revision. Accordingly, revenues shall be raised by ROL 5,288.4 billion and
expenditures by ROL 1,225.7 billion (Monitorul Oficial al Romniei No. 623/31
August 2003).
Government Ordinance No. 88/28 August 2003 on 2003 social security budget
revision (Monitorul Oficial al Romniei No. 620/30 August 2003).
Order No. 104/28 August 2003 issued by the President of the National Agency for
Small- and Medium-sized Enterprises and Co-operation approves the
implementation of UNCTAD/Empretec Programme supporting SMEs development
in 2003 (Monitorul Oficial al Romniei No. 642/9 September 2003).
Order No. 666/155/15 September 2003 issued by the Presidents of the National
Authority for Regulation in Natural Gas Sector and the National Agency for
Mineral Resources amends Order No. 594/141/2003 approving and setting
regulated tariffs in the natural gas sector (Monitorul Oficial al Romniei No.
660/17 September 2003).
Government Emergency Ordinance No. 81/18 September 2003 alters some legal
provisions on granting heating allowances and ensuring the necessary funds to
supply heating and natural gas to households, as well as on some measures to
strengthen financial discipline (Monitorul Oficial al Romniei No. 685/29
September 2003).
Order No. 768/169/9 October 2003 issued by the Presidents of the National
Authority for Regulation in Natural Gas Sector and the National Agency for
Mineral Resources amends Order No. 594/141/2003 approving prices and setting
regulated tariffs in the natural gas sector. The Order approves the administratively
regulated prices, effective 1 November 2003, for natural gas delivered to lock-in
consumers (Monitorul Oficial al Romniei No. 709/10 October 2003).
Government Decision No. 1199/9 October 2003 alters and supplements
Government Decision No. 1005/2000 concerning the measures for granting
financial inducements to local entrepreneurs via the National Agency for

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Development and Implementation of Mining Areas Reconstruction Programmes


with a view to hiring and training the jobless resulting from the disruption of
mining and ancillary activities (Monitorul Oficial al Romniei No. 731/20 October
2003).
Government Emergency Ordinance No. 99/14 October 2003 alters and
supplements Law No. 541/2002 on saving and lending via housing savings banks
(Monitorul Oficial al Romniei No. 747/26 October 2003).
Government Decision No. 1228/14 October 2003 alters and supplements
Government Decision No. 1211/2001 regarding the establishment of the SMEs
Loans Guarantee National Fund (Monitorul Oficial al Romniei No. 760/29
October 2003).
Order No. 1426/14 October 2003 issued by the Minister of Public Finance
approves the Instructions for the set-up, management and use of the risk fund for
state guarantees backing domestic and foreign borrowings (Monitorul Oficial al
Romniei No. 802/14 November 2003).
Government Emergency Ordinance No. 111/24 October 2003 sets the manner in
which proceeds from privatisation and the recovery of non-performing bank assets
are used. The proceeds the BARA collected from the recovery of non-performing
bank assets, after the deduction of outlays envisaged by the institutions budget,
shall be used for redemption of government securities in order to lower public debt
(Monitorul Oficial al Romniei No. 748/26 October 2003).
Government Decision No. 1272/4 November 2003 approves the Ministry of
Public Finances borrowings up to EUR 300 million by reopening a EURdenominated Eurobond issue on the international capital markets (Monitorul
Oficial al Romniei No. 796/12 November 2003).
Order No. 1250/6/13 November 2003 issued by the Minister of Public Finance
and the Governor of the National Bank of Romania lays down the procedure to be
followed by banks Romanian legal entities and the banks branches in Romania
foreign legal entities as concerns the submitting of information on their
accounts opened and/or closed by their holders (Monitorul Oficial al Romniei No.
32/15 January 2004).

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Law No. 485/18 November 2003 amends and supplements the provisions of Law
No. 58/1998 on banking activity (Monitorul Oficial al Romniei No. 876/10
December 2003).
Law No. 496/20 November 2003 ratifies the 2003 Annual Financing Agreement
between the Government of Romania and the Commission of the European
Communities regarding the Special Accession Programme for Agriculture and
Rural Development in Romania, signed in Brussels and Bucharest respectively, on
31 July 2003 (Monitorul Oficial al Romniei No. 843/26 November 2003).
Government Decision No. 1383/27 November 2003 sets the indexation of public
sector pensions, of pensions of the military, and of some household incomes
starting December 2003. The value of a "pension point" shall be subject to a 3.1
percent indexation (Monitorul Oficial al Romniei No. 856/2 December 2003).
Government Decision No. 1387/27 November 2003 approves the cut in both
spending and government deficit, as well as the supplementation of spending and
of the deficit of the 2003 Unique National Healthcare Social Security Fund budget
(Monitorul Oficial al Romniei No. 868/5 December 2003).
Law No. 507/28 November 2003 sets the volume and composition of revenues by
chapter and subchapter, as well as of expenditures by beneficiary and major
government institutions involved in resource allocation for government budget and
the Unique National Healthcare Social Security Fund budget for 2004 (Monitorul
Oficial al Romniei No. 853/2 December 2003).
Law No. 519/3 December 2003 lays down the amount of revenues and
expenditures, as well as their components, for the social security budget, the
unemployment budget, and foreign borrowings in 2004 (Monitorul Oficial al
Romniei No. 864/4 December 2003).
Government Decision No. 1431/4 December 2003 sets the indexation of the
monthly minimum guaranteed income for 2004, as follows: ROL 1,480,000 for 2member households; ROL 2,057,000 for 3-member households; ROL 2,547,000
for 4-member households; ROL 3,041,000 for 5-member households; and ROL
205,000 for any other additional household member (Monitorul Oficial al
Romniei No. 894/13 December 2003).

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Government Decision No. 1433/4 December 2003 sets forth the implementation
of the fifth stage of public pension realignment in January 2004 (Monitorul Oficial
al Romniei No. 897/15 December 2003).
Government Emergency Ordinance No. 123/11 December 2003 provides for the
wage increases for public sector employees in 2004 (Monitorul Oficial al Romniei
No. 919/22 December 2003).
Law No. 536/15 December 2003 approves and amends the provisions of Government
Ordinance No. 76/2003 amending Government Emergency Ordinance No. 36/2001
on the regime of administered prices and tariffs set upon endorsement of the
Competition Council (Monitorul Oficial al Romniei No. 911/19 December 2003).
Law No. 537/15 December 2003 approves and amends the provisions of
Government Emergency Ordinance No. 53/2003 regarding subsidised interest on
mortgage loans for housing via the National Housing Agency (Monitorul Oficial al
Romniei No. 911/19 December 2003).
Government Decision No. 1515/18 December 2003 sets the gross minimum
guaranteed wage at ROL 2,800,000 per month for a full-time programme of 172
hours, on average, in 2004 (Monitorul Oficial al Romniei No. 920/22 December
2003).
Government Decision No. 1521/18 December 2003 sets the temporary exemption
and reduction of import duties on some agricultural and industrial products in 2004
(Monitorul Oficial al Romniei No. 937/24 December 2003).
Government Decision No. 1526/18 December 2003 sets forth the general regime
of exports and imports of goods from and within Romanias customs territory
(Monitorul Oficial al Romniei No. 937/24 December 2003).
Government Decision No. 1563/18 December 2003 increases the openness of the
power market to 40 percent of final consumption in 2002 as from 31 December
2003 (Monitorul Oficial al Romniei No. 22/12 January 2004).
Decision No. 1076/18 December 2003, issued by the President of the National
Authority for Regulation in the Natural Gas Sector, increases the openness of the
domestic natural gas market for 2004 to as much as 40 percent of domestic final

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consumption in 2003, i.e. 18,251.9 million cubic metres (Monitorul Oficial al


Romniei No. 915/20 December 2003).
Decision No. 1078/18 December 2003, issued by the President of the National
Authority for Regulation in the Natural Gas Sector, approves the criteria and
methods for approving prices and setting administered tariffs in the natural gas
sector (Monitorul Oficial al Romniei No. 40/19 January 2004).
Law No. 571/22 December 2003 on the Tax Code sets forth the legal framework
for taxes and fees representing revenues to the government budget and local
budgets, mentions the taxpayers liable to payment of such taxes and fees, as well as
the manner in which they are calculated and paid (Monitorul Oficial al Romniei
No. 927/23 December 2003).

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Main regulations issued by the National Bank of Romania


in 2003

Circular No. 1/7 January 2003 sets the reference rate of the National Bank of
Romania at 19.6 percent per year for January 2003 (Monitorul Oficial al Romniei
No. 9/10 January 2003).
Circular No. 2/13 January 2003 sets forth the interest rates on required reserves
for 24 January 23 February 2003 maintenance period at 6.25 percent for reserves
in ROL and at 0.75 percent for reserves in USD (Monitorul Oficial al Romniei
No. 45/28 January 2003).
Circular No. 3/3 February 2003 sets the reference interest rate of the National
Bank of Romania for February 2003 at 19.2 percent per annum (Monitorul Oficial
al Romniei No. 83/11 February 2003).
Order No. 2/12 February 2003 approves the Periodic Financial Statement Models
and the Methodological Norms on their preparation and use by credit institutions
subject to the Accounting Regulations harmonised with Directive 86/635/EEC and
the International Accounting Standards applicable to credit institutions, as
approved by Order No. 1982/5/2001 issued by the Minister of Public Finance and
the NBR Governor (Monitorul Oficial al Romniei No. 228/4 April 2003).
Norms No. 1/12 February 2003 amend and supplement the provisions of NBR
Norms No. 10/2002 on derivatives (Monitorul Oficial al Romniei No. 96/17
February 2003).
Circular No. 5/13 February 2003 amends and supplements the provisions of NBR
Regulation No. 3/1997 on performing foreign currency operations, as amended and
added subsequently (Monitorul Oficial al Romniei No. 111/21 February 2003).
Circular No. 6/20 February 2003 amends and supplements the Chart of Accounts
for banks and the Methodological Norms on its use, the Financial Accounting
Models for banks and the Methodological Norms on their preparation and use, and
the Accounting Regulations harmonised with Directive 86/635/EEC and the
International Accounting Standards applicable to credit institutions. Moreover, it

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sets the measures relative to credit institutions closing the accounting period
(Monitorul Oficial al Romniei No. 237/8 April 2003).
Norms No. 2/21 February 2003 govern the methodology to determine and report
the average lending and deposit rates applicable to banks, Romanian legal entities,
to the branches of foreign banks foreign legal entities operating in Romania,
and to the central houses of credit co-operatives (Monitorul Oficial al Romniei
No. 160/13 March 2003).
Circular No. 7/3 March 2003 sets the reference rate of the National Bank of
Romania for March 2003 at 18.4 percent per annum (Monitorul Oficial al
Romniei No. 139/4 March 2003).
Norms No. 3/5 March 2003 supplement the provisions of Norms No. 2/1999 on
bank licensing issued by the National Bank of Romania (Monitorul Oficial al
Romniei No. 181/24 March 2003).
Circular No. 8/26 March 2003 sets the National Bank of Romanias interest rate
on the lending facility at 30 percent per annum, effective 31 March 2003
(Monitorul Oficial al Romniei No. 222/3 April 2003).
Circular No. 9/26 March 2003 sets at 45 percent per annum the penalty rate on
ROL-denominated required reserve deficits starting with 24 April - 23 May 2003
maintenance period (Monitorul Oficial al Romniei No. 222/3 April 2003).
Circular No. 10/1 April 2003 sets the reference rate of the National Bank of
Romania for April 2003 at 17.4 percent per annum (Monitorul Oficial al Romniei
No. 226/3 April 2003).
Circular No. 11/4 April 2003 stipulates that the reports prepared by credit
institutions in USD equivalent, consistent with the regulations in force issued by
National Bank of Romania, shall be drafted in EUR equivalent from 1 May 2003
onwards (Monitorul Oficial al Romniei No. 252/11 April 2003).
Circular No. 12/7 April 2003 on putting into circulation, for numismatic purposes,
of a gold coin with face value of ROL 100, in the issue History of Gold The
Apahida Eagle (Monitorul Oficial al Romniei No. 327/14 May 2003).

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Circular No. 13/9 April 2003 repeals the provisions of Circular No. 11/2002 on
making investments in securities that are not listed on regulated markets, including
the guarantees for some dealings in such securities (Monitorul Oficial al Romniei
No. 269/17 April 2003).
Circular No. 15/17 April 2003 amends the deadline related to prudential
supervision reports prepared by banks, Romanian legal entities, subject to Order
No. 2/2003, issued by the NBR Governor, regarding approval of Periodic Financial
Statement Models and the Methodological Norms on their preparation and use by
the credit institutions implementing the Accounting Regulations harmonised with
Directive 86/635/EEC and the International Accounting Standards applicable to
credit institutions (Monitorul Oficial al Romniei No. 277/19 April 2003).
Circular No. 16/17 April 2003 regulates the withdrawal from circulation, starting 1
June 2003, of the metal coins with face value of ROL 5, ROL 10, ROL 20 and ROL
50 issued subsequent to 1990. After 30 June 2003, the above-mentioned coins
cease to be legal tender (Monitorul Oficial al Romniei No. 330/15 May 2003).
Circular No. 17/2 May 2003 sets at 17.9 percent per annum the National Bank of
Romanias reference rate for May 2003 (Monitorul Oficial al Romniei No. 298/6
May 2003).
Circular No. 18/2 June 2003 sets the reference rate of the National Bank of
Romania for June 2003 at 18.2 percent per annum (Monitorul Oficial al Romniei
No. 390/5 June 2003).
Norms No. 4/13 June 2003 stipulate the licensing conditions by the National Bank
of Romania for savings banks for housing which are established and operate
consistent with Law No. 541/2002 on saving and lending for housing and with
banking laws, performing their activities based on the licence released by the
National Bank of Romania (Monitorul Oficial al Romniei No. 445/23 June 2003).
Norms No. 5/13 June 2003 regulate the specific operating conditions for savings
banks for housing and set prudential regulations, specific to these entities
(Monitorul Oficial al Romniei No. 445/23 June 2003).
Norms No. 6/13 June 2003 set forth the conditions and the procedure for granting
preliminary approvals by the central house and the National Bank of Romania for

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mergers/split-ups of credit co-operatives within the same credit co-operative


network, as well as the licensing conditions by the National Bank of Romania for
newly-established credit co-operatives resulting from mergers/split-ups (Monitorul
Oficial al Romniei No. 447/24 June 2003).
Norms No. 7/13 June 2003 amend and supplement NBR Norms No. 1/2001 on
bank liquidity (Monitorul Oficial al Romniei No. 450/25 June 2003).
Circular No. 19/17 June 2003 on putting into circulation, for numismatic
purposes, of a silver coin with face value of ROL 500 occasioned by the 150th
anniversary of the birth of the composer Ciprian Porumbescu (Monitorul Oficial
al Romniei No. 519/18 July 2003).
Circular No. 20/1 July 2003 sets at 18.2 percent per annum the reference rate of
the National Bank of Romania for July 2003 (Monitorul Oficial al Romniei No.
476/3 July 2003).
Circular No. 21/3 July 2003 amends and supplements Circular No. 9/2001 issued
by the National Bank of Romania on the operation of the National Company for
Funds Transfer and Settlement TransFonD joint-stock company, as the National
Bank of Romanias agent (Monitorul Oficial al Romniei No. 527/22 July 2003).
Circular No. 22/3 July 2003 alters the provisions of Regulation No. 1/2002 issued
by the National Bank of Romania regarding the large-value funds transfer system
(Monitorul Oficial al Romniei No. 546/30 July 2003).
Regulation No. 1/3 July 2003 sets the principles and the manner of bilateral
netting for small-value payments to the State Treasury, inter-treasury payments,
regardless of value, and net settlement via the National Company for Funds
Transfer and Settlement TransFonD joint-stock company, as the National Bank of
Romanias agent (Monitorul Oficial al Romniei No. 506/14 July 2003).
Circular No. 23/11 July 2003 sets at 6 percent per annum the interest rate on
required reserves in ROL starting with 24 July 2003-23 August 2003 maintenance
period (Monitorul Oficial al Romniei No. 532/24 July 2003).
Circular No. 24/1 August 2003 sets at 18.2 percent per annum the reference rate of
the National Bank of Romania for August 2003 (Monitorul Oficial al Romniei No.
566/6 August 2003).

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Norms No. 8/1 August 2003 alter the provisions of Art. 11 and Appendix 4 of
Norms No. 8/1999 issued by the NBR on the mitigation of credit risk of credit
institutions, as amended and supplemented subsequently (Monitorul Oficial al
Romniei No. 568/7 August 2003).
Order No. 5/8 August 2003 issued by the NBR Governor extends, starting with 24
May 2003 - 23 June 2003 until the end of the 24 November 2003 - 23 December
2003 maintenance period, the validity of Order No. 3/2000, as amended by Orders
Nos. 2/2001, 8/2001 and 6/2002, abiding by the provisions of NBR Regulation No.
6/2002 on required reserves (Monitorul Oficial al Romniei No. 580/14 August
2003).
Circular No. 25/1 September 2003 sets at 19.11 percent per annum the reference
rate of the National Bank of Romania for September 2003 (Monitorul Oficial al
Romniei No. 628/2 September 2003).
Circular No. 27/9 September 2003 governs the putting into circulation of a
numismatic silver coin with face value of ROL 500 celebrating 500 years of
Rmnic Bishopric (Monitorul Oficial al Romniei No. 649/12 September 2003).
Circular No. 28/17 September 2003 supplements Regulation No. 6/2002 regarding
required reserves. Accordingly, as far as credit co-operatives are concerned, the
fund comprising deposits of their members, in keeping with Government
Emergency Ordinance No. 97/2000 on credit co-operatives, falls out of the required
reserve calculation base (Monitorul Oficial al Romniei No. 682/26 September
2003).
Circular No. 29/1 October 2003 sets at 19.25 percent per annum the reference rate
of the National Bank of Romania for October 2003 (Monitorul Oficial al Romniei
No. 698/6 October 2003).
Circular No. 30/14 October 2003 on the putting into circulation of a numismatic
gold coin with face value of ROL 5,000 celebrating 625 years since the start of
building works at Bran Castle (Monitorul Oficial al Romniei No. 727/17
October 2003).
Circular No. 31/31 October 2003 amends and supplements the provisions of NBR
Regulation No. 3/1997 Currency Regulation, as amended and supplemented
subsequently (Monitorul Oficial al Romniei No. 781/6 November 2003).

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Circular No. 32/3 November 2003 sets at 20.19 percent per annum the reference
rate of the National Bank of Romania for November 2003 (Monitorul Oficial al
Romniei No. 781/6 November 2003).
Circular No. 33/17 November 2003 on the putting into circulation of a set of three
numismatic silver coins with face value of ROL 50 each representing the coin issue
International Year of Pure Water Danube Delta Biosphere Reserve (Monitorul
Oficial al Romniei No. 850/28 November 2003).
Circular No. 35/24 November 2003 concerns the withdrawal from circulation and
the cessation to be legal tender of paper banknotes with face value of ROL 50,000
year of issue 2000 and of ROL 100,000 year of issue 1998 and the putting
into circulation of the polymer banknote with face value of ROL 1,000,000
(Monitorul Oficial al Romniei No. 867/5 December 2003).
Circular No. 36/2 December 2003 sets at 20.41 percent per annum the reference
rate of the National Bank of Romania for December 2003 (Monitorul Oficial al
Romniei No. 867/5 December 2003).
Norms No. 9/9 December 2003 govern the transmission by mortgage credit
undertakings of documents attesting establishment and registration with the Trade
Register for notification to the National Bank of Romania, as well as the reporting
to the central bank of the composition of their mortgage claim portfolios
(Monitorul Oficial al Romniei No. 896/15 December 2003).
Norms No. 10/9 December 2003 set the maximum period for cessation in
operation of the settlement and payments system, and of the foreign exchange and
money markets, at four successive calendar days (Monitorul Oficial al Romniei
No. 896/15 December 2003).
Circular No. 37/10 December 2003 on the putting into circulation, for numismatic
purposes, of a silver coin with face value of ROL 500 in the series "Centennial of
the Romanian Numismatic Society" (Monitorul Oficial al Romniei No. 901/16
December 2003).
Norms No. 11/15 December 2003 regulate the minimum level of initial capital and
own funds, on a consolidated basis and on an unconsolidated basis, as well as the
methodology for calculation and, where appropriate, for reporting of initial capital

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and own funds by banks, Romanian legal entities, savings banks for housing, and
electronic money institutions (Monitorul Oficial al Romniei No. 17/9 January
2004).
Norms No. 12/15 December 2003 regulate the oversight of solvency and large
exposures on a consolidated basis and on an unconsolidated basis of credit
institutions (Monitorul Oficial al Romniei No. 51/21 January 2004).
Norms No. 13/15 December 2003 amend and supplement the provisions of Norms
No. 3/2002, issued by the National Bank of Romania, regarding know your
customer standards (Monitorul Oficial al Romniei No. 921/2 2 December 2003).
Norms No. 14/15 December 2003 set the types and amount of investment
permitted to electronic money institutions (Monitorul Oficial al Romniei No.
921/22 December 2003).
Circular No. 38/18 December 2003 lays down the settlement procedure for
transfers of funds through the current accounts of credit institutions and of the State
Treasury during the period of closing the 2003 financial year (Monitorul Oficial al
Romniei No. 939/24 December 2003).
Circular No. 39/18 December 2003 amends and supplements the provisions of
Circular No. 26/2001, issued by the National Bank of Romania, amending and
supplementing Regulation No. 3/1997Currency Regulation, as subsequently
amended and supplemented (Monitorul Oficial al Romniei No. 928/23 December
2003).
Norms No. 15/18 December 2003 set measures to mitigate credit risk attached to
consumer credit and set forth the conditions for granting, collateralising and
monitoring of such loans starting 1 February 2004 (Monitorul Oficial al Romniei
No. 920/22 December 2003).
Norms No. 16/18 December 2003, issued by the National Bank of Romania and
the National Securities and Exchange Commission, amend and supplement the
provisions of Methodological Norms No. 3/2000 on the application of Law No.
190/1999 on mortgage credit for real estate investments (Monitorul Oficial al
Romniei No. 940/29 December 2003).

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Norms No. 17/18 December 2003 regulate the general framework for the
organisation and the internal audit of credit institutions and the management of
material risks, as well as the organisation and performance of internal audit in
credit institutions (Monitorul Oficial al Romniei No. 47/20 January 2004).

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Charts

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List of
charts

Main Macroeconomic Indicators..............................................................................................


Real GDP .................................................................................................................................
Current Account Deficit / GDP.................................................................................................
Consolidated Government Budget Deficit / GDP.....................................................................
Share of Consumption and Investment / GDP..........................................................................
Share of Exports and Imports / GDP.........................................................................................
Share of the Private Sector / GDP.............................................................................................
Balance of Payments.................................................................................................................
Current Account Balance..........................................................................................................
Trade Balance...........................................................................................................................
Foreign Trade by Group of Countries.......................................................................................
Commodity Composition of Foreign Trade..............................................................................
Gross International Reserves.....................................................................................................
Net International Reserves........................................................................................................
MLT External Debt and External Debt Service........................................................................
MLT External Debt/ GDP.........................................................................................................
MLT External Debt Service/ Exports of Goods and Services...................................................
Prices in Economy....................................................................................................................
Consumer Prices.......................................................................................................................
Broad Money (Annual Data).....................................................................................................
Broad Money and GDP Deflator...............................................................................................
Money Velocity........................................................................................................................
Broad Money (Monthly Data)...................................................................................................
Foreign Exchange Deposits......................................................................................................
Broad Money, Consumer Prices and Interest Rate....................................................................
Non-government Credit, Consumer Prices and Interest Rate....................................................
Reserve Money Counterpart.....................................................................................................
Average Reserve Money Multipliers........................................................................................
Interbank Money Market (Monthly Data).................................................................................
Interbank Money Market (Daily Data)......................................................................................
Deposit-taking Operations........................................................................................................
Interbank Forex Market (Daily Data)........................................................................................
Foreign Exchange Market Operations...............................................................................
Non-bank Client Operations.............................................................................................
Average Exchange Rate....................................................................................................
Bucharest Stock Exchange (Daily Data)...................................................................................
RASDAQ Electronic Stock Exchange (Daily Data).................................................................
Prudential Indicators.................................................................................................................
Profitability Indicators..............................................................................................................
Banks by the Five Composite Ratings......................................................................................
Doubtful and Past-due Claims of Banks...................................................................................
Composition of Banks by Ownership.......................................................................................
Banks with Majority Domestic Capital by Ownership..............................................................
Payment Incident Bureau (PIB)................................................................................................
Rejected Debit Payment Instruments ...............................................................................
Accountholders Registered with PIB ...............................................................................
Credit Risk Bureau....................................................................................................................
Overdue Loans..................................................................................................................
Bank Loans Structure........................................................................................................

185
192
192
192
193
193
193
194
195
195
196
196
197
197
198
198
198
199
199
200
200
200
201
201
202
202
203
203
204
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206
207
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207
207
208
209
210
210
211
211
212
212
213
213
213
214
214
214

This page is left blank intentionally.

Annual
Report
2003

Charts

Main Macroeconomic Indicators

percent
2002
2003

5.0
Real GDP (annual change)
4.9

17.8
Inflation rate (Dec./Dec.)
14.1

8.4
Unemployment rate
7.2

-2.6
Fiscal deficit / GDP
-2.3

-3.4
Current account balance / GDP
-5.7

Direct and portfolio


investment / GDP

3.3
4.2

33.8

External debt (medium- and


long-term) / GDP

Net real average


salary earnings

33.4

2.4
8.8

Source: National Institute of Statistics, Ministry of Public Finance and National Bank of Romania

National Bank of Romania

185

Annual
Report
2003

Charts

Real GDP
annual percentage change
7.1
3.9

5.7

5.0

4.9

2001

2002

2003

3.9
2.1

-1.2

-6.1

1994

1995

1996

1997

-4.8

1998

1999

2000

Source: National Institute of Statistics

Current Account Deficit / GDP


percent

-1.4

-4.0

-3.4

-3.7

-5.0

-5.5

-6.0

-5.7

-6.9

-7.3

1994
1995
1996
1997
1998
Source: National Institute of Statistics, National Bank of Romania

1999

2000

2001

2002

2003

Consolidated Government Budget Deficit / GDP


percent

-1.8

-1.9
-2.6

-2.6
-3.5

-3.3

-3.6

-3.9
1994

1995

1996

-2.3

-4.0
1997

1998

1999

2000

2001

2002

2003

Source: Ministry of Public Finance, National Institute of Statistics

186

National Bank of Romania

Annual
Report
2003

Charts

Share of Consumption and Investment / GDP


percent
100
90
final
consumption

80
70
60

gross investment

50
40
30
20
10
0
1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Source: National Institute of Statistics

Share of Exports and Imports / GDP


percent
50
40
net exports

30
20

exports

10
imports

0
10
20
1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Source: National Institute of Statistics

Share of the Private Sector / GDP

percent

60.6

62.0

63.7

65.6

68.0

68.9

69.1

2001

2002

2003

54.9
45.3
38.9

1994

1995

1996

1997

1998

1999

2000

Source: National Institute of Statistics

National Bank of Romania

187

Annual
Report
2003

Charts

Balance of Payments

20,000
18,000

millions of EUR

exports fob
imports fob

16,000
14,000

trade balance
current account balance

12,000
10,000
8,000
6,000
4,000
2,000
0
-2,000
-4,000
4,000
net capital inflow
2,000
0
-2,000

3,000

2,000

net direct and portfolio


investment

1,000

2,000

0
reserve assets (NBR)

1,000

1,000
1994
1995
1996
Source: National Bank of Romania

188

1997

1998

1999

2000

2001

2002

2003

National Bank of Romania

Annual
Report
2003

Charts

Current Account Balance


millions of EUR; cumulative data
500

-500

-1,000

-1,500

-2,000

-2,500

-3,000
1999

2000

2001

2002

2003

Source: National Bank of Romania

Trade Balance
millions of EUR; monthly data
2,500

2,000

1,500

1,000

500

trade balance

imports fob

exports fob

500

1,000
1999

2000

2001

2002

2003

Source: National Institute of Statistics

National Bank of Romania

189

Annual
Report
2003

Charts

Foreign Trade by Group of Countries


exports fob

100%

imports cif

100%

European Union

90%

90%

80%

80%

70%

USA and other


developed countries

70%

60%

CEFTA

60%

50%

50%
Russian Federation

40%
30%

40%
30%

developing
countries

20%

20%

other

10%

10%

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

2003

2002

2001

2000

1999

1998

1997

1996

1995

0%
1994

0%

Source: National Institute of Statistics

Commodity Composition of Foreign Trade


imports cif

exports fob

100%

100%
machinery,
apparatus,
equipment and
transport means
mineral products

90%
80%

90%
80%

70%

70%

60%

60%

textiles, apparel,
footwear

50%

50%
chemical and plastic
materials

40%
30%

40%
30%

base metals

20%

20%
other

10%

10%

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

2003

2002

2001

2000

1999

1998

1997

1996

1995

0%
1994

0%

Source: National Institute of Statistics

190

National Bank of Romania

Annual
Report
2003

Charts

Gross International Reserves


(millions of EUR; end of period)

monthly

annual

9,000

9,000
8,000

8,000

NBR's reserves
banks' reserves

7,000

7,000

gold

6,000

6,000

2003

2002

2001

2000

0
1999

0
2003

1,000

2002

1,000

2001

2,000

2000

2,000

1999

3,000

1998

3,000

1997

4,000

1996

4,000

1995

5,000

1994

5,000

Source: National Bank of Romania

Net International Reserves


(millions of EUR; end of period)

monthly

annual
8,000

8,000

NIR
net convertible currencies

7,000

7,000

gold

2003

2002

0
2001

0
2000

1,000

1999

1,000

2003

2,000

2002

2,000

2001

3,000

2000

3,000

1999

4,000

1998

4,000

1997

5,000

1996

5,000

1995

6,000

1994

6,000

Source: National Bank of Romania


National Bank of Romania

191

Annual
Report
2003

Charts

MLT External Debt and External Debt Service


16,000

millions of EUR; end of period

14,000

MLT external debt

12,000
10,000
MLT debt service

8,000
6,000
4,000
2,000
0
1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Source: National Bank of Romania

MLT External Debt/ GDP


33.3

percent
26.7

27.2

27.6

29.4

32.3

33.8

33.4

19.6
16.3

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Source: National Institute of Statistics, National Bank of Romania

MLT External Debt Service/ Exports of Goods and Services


30.9
percent
22.7
19.4

18.9

21.1
17.6

15.9
12.5
10.1
8.0

1994
1995
1996
Source: National Bank of Romania

192

1997

1998

1999

2000

2001

2002

2003

National Bank of Romania

Annual
Report
2003

Charts

Prices in Economy
annual indices
280
CPI (average)

260
240
220
200

PPI (average)

180
160
140

GDP deflator

120
100
1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Source: National Institute of Statistics

200

Consumer Prices

indices; previous Dec.=100

200

190

total

190

180

food items

180

170

non-food items

170

160

services

160

150

150

140

140

130

130

120

120

110

110

100

100
1999

2000

2001

2002

2003

Source: National Institute of Statistics

indices; previous Dec.=100


200

200

190

190

total

180

180

administered

170

170

seasonal product

160

160

150

150

140

140

130

130

120

120

110

110

100

100

90

90
1999

2000

2001

2002

2003

Source: National Institute of Statistics

National Bank of Romania

193

Annual
Report
2003

Charts

Broad Money (Annual Data)


ROL billions; end of period
500,000

100%
foreign
exchange
deposits

450,000

90%

400,000

80%
time and
restricted
deposits

350,000
300,000

70%
60%

household
savings

250,000
200,000

50%
40%

demand
deposits

150,000

30%
currency
outside banks

100,000

20%

50,000

10%

0%
1999

2000

2001

2002

2003

1999

2000

2001

2002

2003

Source: National Bank of Romania

Broad Money and GDP Deflator

Money Velocity

annual indices

times

300

8
7

250
6
200
5
150

4
3

100

velocity of M2
(average)

GDP deflator

2
velocity of M2
(end of period)

M2 (average)

50

M2 (end of period)

Source: National Institute of Statistics,


National Bank of Romania

194

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

2003

2002

2001

2000

1999

1998

1997

1996

1995

0
1994

Source: National Institute of Statistics,


National Bank of Romania
National Bank of Romania

Annual
Report
2003

Charts

Broad Money (Monthly Data)


ROL billions; end of period
500,000

100%
foreign exchange deposits

450,000

90%
time and restricted
deposits

400,000

80%

household savings
350,000

70%

demand deposits

300,000

60%

currency outside banks

250,000

50%

200,000

40%

150,000

30%

100,000

20%

50,000

10%
0%

0
1999

2000

2001

2002

2003

1999

2000

2001

2002

2003

Source: National Bank of Romania

Foreign Exchange Deposits


millions of EUR; end of period
5,000

time deposits

4,000
3,000

demand deposits

2,000
1,000
0
millions of EUR; end of period

5,000
4,000

household
deposits

3,000
2,000

corporate
deposits

1,000
0
1999

2000

2001

2002

2003

Source: National Bank of Romania

National Bank of Romania

195

Annual
Report
2003

Charts

Broad Money, Consumer Prices and Interest Rate

80

percent; compared to the same period of previous year

percent per annum

80

consumer prices
M2
ROL deposits
60

60

average interest rate on time deposits (right-side scale)

40

40

20

20

0
2000

2001

2002

2003

Source: National Institute of Statistics, National Bank of Romania

Non-government Credit, Consumer Prices and Interest Rate

120

percent per annum

percent; compared to the same period of previous year

80

consumer prices
non-government credit (total)
non-government credit (ROL)

90

60

average lending rate for non-government non-bank clients (right-side scale)

60

40

30

20

-30
2000

2001

2002

2003

Source: National Institute of Statistics, National Bank of Romania

196

National Bank of Romania

Annual
Report
2003

Charts

Reserve Money Counterpart


ROL billions; end of period

300,000

250,000
reserve money
200,000

net foreign assets


(excluding gold)
net credit to government

150,000

net refinancing
100,000

50,000

50,000

100,000

150,000
1999

2000

2001

2002

2003

Source: National Bank of Romania

Average Reserve Money Multipliers


6

multiplier
for M2

multiplier
for M1

0
1999

2000

2001

2002

2003

Source: National Bank of Romania


National Bank of Romania

197

Annual
Report
2003

Charts

Interbank Money Market (Monthly Data)

8,000

percent per annum


160

ROL billions

7,000

140
daily average transactions volume

6,000

120
average interest rate (right-side scale)

5,000

100

4,000

80

3,000

60

2,000

40

1,000

20

0
1999

80,000

2000

2001

2002

ROL billions

2003

percent per annum

daily average interbank deposits

70,000

140

average interest rate (right-side scale)

60,000

160

120

50,000

100

40,000

80

30,000

60

20,000

40

10,000

20

0
1999

2000

2001

2002

2003

Source: National Bank of Romania

198

National Bank of Romania

Annual
Report
2003

Charts

Interbank Money Market (Daily Data)


30,000

ROL billions

percent per annum

30

daily average transactions volume


average interest rate (right-side scale)

25,000

25

20,000

20

15,000

15

10,000

10

5,000

0
Jan.03

120,000

0
Feb.03

Mar.03

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Sep.03

Oct.03

ROL billions

Nov.03

Dec.03

percent per annum

30

daily average interbank deposits


average interest rate (right-side scale)

100,000

25

80,000

20

60,000

15

40,000

10

20,000

0
Jan.03
40

0
Feb.03

Mar.03

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Sep.03

Oct.03

Nov.03

Dec.03

percent per annum

BUBOR (overnight)
30

BUBID (overnight)

20

10

0
Jan.03

Feb.03

Mar.03

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Sep.03

Oct.03

Nov.03

Dec.03

Source: National Bank of Romania


National Bank of Romania

199

Annual
Report
2003

Charts

Deposit-taking Operations
ROL billions

percent per annum

80,000

160

70,000

140

daily average outstanding

60,000

120

average interest rate (right-side scale)

50,000

100

40,000

80

30,000

60

20,000

40

10,000

20

0
1999

2000

2001

2002

2003

Source: National Bank of Romania

4,000

ROL billions

percent per annum

160

daily average transactions


3,500

140
average interest rate (right-side scale)

3,000

120

2,500

100

2,000

80

1,500

60

1,000

40

500

20

0
1999

2000

2001

2002

2003

Source: National Bank of Romania

200

National Bank of Romania

Annual
Report
2003

Charts

Interbank Forex Market (Daily Data)


Foreign Exchange Market Operations
600

millions of EUR
daily volume (total)

500

interbank operations
NBR's purchases, net

400
300
200
100
0
100
Jan.03

Feb.03

Mar.03

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Sep.03

Oct.03

Nov.03

Dec.03

Sep.03

Oct.03

Nov.03

Dec.03

Non-bank Client Operations


150

millions of EUR
purchases from clients
sales to clients
net balance

100
50
0
50
100
150
Jan.03

Feb.03

Mar.03

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Average Exchange Rate


30,000
32,000
34,000
36,000

ROL/USD

38,000

ROL/EUR

40,000
42,000
Jan.03

Feb.03

Mar.03

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Sep.03

Oct.03

Nov.03

Dec.03

Source: National Bank of Romania


National Bank of Romania

201

Annual
Report
2003

Charts

Bucharest Stock Exchange (Daily Data)


5,000

number

ROL billions

1,314.8

615.9

500

turnover
400

4,000
number of
trades

3,000

300

2,000

200

1,000

100

0
Jan.03

300

0
Feb.03

Mar.03

number (millions)

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Sep.03

Oct.03

Nov.03

Dec.03

ROL billions

375.6

150,000

shares traded
market capitalisation

240

120,000

180

90,000

120

60,000

60

30,000

0
Jan.03

2,500

0
Feb.03

Mar.03

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Sep.03

Oct.03

points

Nov.03

Dec.03

points

10,000

2,000

8,000

1,500

6,000

4,000

1,000
BET index
BET-C index

500

2,000

BET-FI index (right-side scale)


0
Jan.03

0
Feb.03

Mar.03

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Sep.03

Oct.03

Nov.03

Dec.03

Source: Bucharest Stock Exchange

202

National Bank of Romania

Annual
Report
2003

Charts

RASDAQ Electronic Stock Exchange (Daily Data)


1,500

number

845.9

ROL billions

300

turnover
250

1,250
number of
trades

1,000

200

750

150

500

100

250

50
0

0
Jan.03
60

Feb.03

Mar.03

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Sep.03

Oct.03

number (millions)

Nov.03

Dec.03

ROL billions

120,000

shares traded
50

100,000

market capitalisation

40

80,000

30

60,000

20

40,000

10

20,000

0
Jan.03
1,600

0
Feb.03

Mar.03

Apr.03

May.03

Jun.03

Jul.03

Aug.03

Jul.03

Aug.03

Sep.03

Oct.03

Nov.03

Dec.03

points
RASDAQ-C index
RAQ-I index

1,400

RAQ-II index
1,200

1,000

800

600
Jan.03

Feb.03

Mar.03

Apr.03

May.03

Jun.03

Sep.03

Oct.03

Nov.03

Dec.03

Source: RASDAQ

National Bank of Romania

203

Annual
Report
2003

Charts

Prudential Indicators
percent
60

50

overall risk ratio (risk-weighted net assets* / total assets*)

40
1st solvency ratio >12% (total own funds / risk-weighted net assets*)
30

20

2nd solvency ratio >8% (tier I capital / risk-weighted net assets*)

10
leverage ratio (tier I capital / net assets)
0
1999

2000

2001

2002

2003

*) including off-balance-sheet items


Source: National Bank of Romania

Profitability Indicators
percent

percent

40

30

20

10
ROA (net income/total assets)

0
ROE (net income/own capital)
(right-side scale)

-1

-10

-2

-20
1999

2000

2001

2002

2003

Source: National Bank of Romania

204

National Bank of Romania

Annual
Report
2003

Charts

Banks by the Five Composite Ratings

100%

weight in total assets


RATING 1

80%
RATING 2

60%
RATING 3

40%
RATING 4
20%
RATING 5
0%
1999

2000

2001

2002

2003

Source: National Bank of Romania

Doubtful and Past-due Claims of Banks


percent

percent

40
total past-due and doubtful claims (net
value)/bank liabilities

30

total past-due and doubtful claims (net


value)/total assets (net value)
total past-due and doubtful claims (net
value)/own capital (according to prudential
reports on own funds) (right-side scale)

20

10

0
1999

2000

2001

2002

2003

Source: National Bank of Romania


National Bank of Romania

205

Annual
Report
2003

Charts

Composition of Banks by Ownership


weight in total net assets
100%

80%

60%

40%

20%

0%
1999

2000

2001

2002

2003

foreign banks' branches


majority foreign capital
majority domestic capital
Source: National Bank of Romania

Banks with Majority Domestic Capital by Ownership


100%

weight in total net assets

80%

60%

40%

20%

0%
1999

2000

2001

2002

2003

majority state-owned capital


majority private capital
Source: National Bank of Romania

206

National Bank of Romania

Annual
Report
2003

Charts

Payment Incident Bureau (PIB)


Rejected Debit Payment Instruments
ROL billions
1,600
bills of exchange

1,400

promissory notes
cheques

1,200
1,000
800
600
400
200

Nov.03

Sep.03

Jul.03

May.03

Mar.03

Jan.03

Nov.02

Sep.02

Jul.02

May.02

Mar.02

Jan.02

Nov.01

Sep.01

Jul.01

May.01

Mar.01

Jan.01

Nov.00

Sep.00

Jul.00

May.00

Mar.00

Jan.00

Accountholders Registered with PIB


4,000
3,500
3,000
2,500
2,000

entities that generated payment incidents


risky entities

1,500

entities under a ban


1,000
500

Nov.03

Sep.03

Jul.03

May.03

Mar.03

Jan.03

Nov.02

Sep.02

Jul.02

May.02

Mar.02

Jan.02

Nov.01

Sep.01

Jul.01

May.01

Mar.01

Jan.01

Nov.00

Sep.00

Jul.00

May.00

Mar.00

Jan.00

Source: National Bank of Romania


National Bank of Romania

207

Annual
Report
2003

Charts

Credit Risk Bureau


Overdue Loans
400,000

ROL billions

350,000

total loans - overall risk


overdue loans

300,000
250,000
200,000
150,000
100,000
50,000
0
Jan.
2003

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Bank Loans Structure


(31 December 2003)

USD
32%
EUR
38%
Other
1%

ROL
29%
Services
39%
Other
8%

Construction
6%

Agriculture, forestry,
fishery
3%
Industry
44%

Source: National Bank of Romania

208

National Bank of Romania

Statistical Section

This page is left blank intentionally.

Table of Contents
1.
2.
3.
4.
5.
6.
7.

8a.
8b.
8c.
9a.
9b.
10a.
10b.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22a.
22b.
23a.
23b.

Main Macroeconomic Indicators.............................................................................................


Gross Domestic Product..........................................................................................................
Consumer Prices And Industrial Producer Prices....................................................................
Balance of Payments...............................................................................................................
Romania's International Investment Position..........................................................................
Romania's International Investment Position Key Indicators..................................................
Money Market Indicators........................................................................................................
Interbank Operations..........................................................................................................
Government Securities (New and Roll-over Issues)...........................................................
Open-Market Operations Performed by the National Bank of Romania.................................
Standing Facilities Granted to Banks by the National Bank of Romania................................
Required Reserves...................................................................................................................
Interbank Foreign Exchange Market.......................................................................................
Activity of Foreign Exchange Bureaux...................................................................................
Capital Market - Bucharest Stock Exchange...........................................................................
Capital Market - RASDAQ ....................................................................................................
Reserve Money........................................................................................................................
Broad Money...........................................................................................................................
Domestic Credit......................................................................................................................
Consolidated Monetary Survey...............................................................................................
Monetary Balance Sheet of the National Bank of Romania....................................................
Aggregate Monetary Balance Sheet of Credit Institutions......................................................
Average Interest Rates Applied by Credit Institutions
(ROL Transactions).................................................................................................................
Average Interest Rates Applied by Credit Institutions............................................................
Loan Classification..................................................................................................................
Key Prudential Indicators........................................................................................................
Credit Risk Information...........................................................................................................
Loans Granted and Commitments Assumed by Credit Institutions.........................................
Loans Granted by Credit Institutions.......................................................................................
Rejected Debit Payment Instruments......................................................................................
Accountholders that Generated Payment Incidents.................................................................

212
214
215
216
217
218
219
219
219
220
221
221
222
223
224
225
226
227
228
232
235
242

Methodological Notes.............................................................................................................

274

... = missing data


= nil
0 = less than 0.5 but more than nil
x = it is not the case
p.a.= per annum

255
256
262
264
266
267
270
272
273

Annual
Report
2003

Statistical Section

1. MAIN MACROECONOMIC INDICATORS


Period

Gross domestic product


Annual rate GDP deflator GDP per capita

Total

Total

Final consumption
Annual rate
Share in
GDP

3.9
7.1
3.9

(annual %)
239.1
135.3
145.3

(ROL thou.)
2,189.7
3,180.4
4,817.8

(ROL bill.)
38,452.4
58,662.4
89,939.4

252,925.7
373,798.2
545,730.2
803,773.1

6.1
4.8
1.2
2.1

247.3
155.2
147.8
144.3

11,218.2
16,611.2
24,300.0
35,826.4

2001 1,167,687.0
2002 1,512,616.8
2003 1,890,778.3

5.7
5.0
4.9

137.4
123.4
119.2

1994
1995
1996

(ROL bill.)
49,773.2
72,135.5
108,919.6

1997
1998
1999
2000

Period

Industrial
output 1)

(%)

Industrial
producer
prices 1)

(%)

Labour
productivity
per employee
in industry 1)

3.8
10.8
7.0

(%)
77.3
81.3
82.6

(ROL bill.)
10,095.7
15,424.9
24,998.5

(%)
20.7
6.9
5.7

(%)
20.3
21.4
23.0

218,619.8
337,468.6
484,361.4
692,532.9

4.3
1.1
2.5
1.4

86.4
90.3
88.8
86.2

53,540.1
67,919.9
96,630.4
151,947.2

1.7
5.7
4.8
5.5

21.2
18.2
17.7
18.9

52,109.4
994,737.1
69,402.7 1,243,106.9
86,996.3 1,574,536.3

6.3
2.4
6.9

85.2
82.2
83.3

241,153.6
322,382.9
425,916.7

10.1
8.2
9.2

20.7
21.3
22.5

Agriculture
output 1)

Domestic trade
Commercial
Retail sales
share of
services
1) 2)
private sector
delivered to
population 1)
(%)
(%)
(%)
8.5
71.1
22.1
29.0
74.3
21.0
15.3
79.6
5.0

share of
private
sector

Average wage 1)
net nominal
net real

1994
1995
1996

3.3
9.4
6.3

(%)
140.5
35.1
49.9

(%)
14.7
13.7
7.5

1997
1998
1999
2000

7.2
13.8
2.4
7.1

152.7
33.2
44.5
53.4

1.8
7.4
11.3
13.8

3.1
7.6
4.0
14.8

12.1
20.6
6.4
7.0

86.9
95.4
96.8
97.7

2001
2002
2003

8.4
6.0
3.1

40.3
24.5
19.6

6.9
6.5
11.2

22.7

1.9
7.9
5.7

97.5
98.7

Balance of
current
account

Foreign debt

93.8
83.4
76.6

(EUR mill.)
360.1
1,371.8
2,051.7

(EUR mill.) (EUR mill.) (EUR mill.) (EUR mill.)


3,806.2
2,560.2
1,322.9
489.7
4,284.0
2,051.4
1,078.5
261.1
5,811.8
2,534.9
1,279.7
440.0

Period

1994
1995
1996

4)

4)

Foreign trade
Balance
Exports fob Imports fob

(EUR mill.) (EUR mill.) (EUR mill.)


5,166
5,509
343
6,112
7,327
1,215
6,453
8,426
1,973

(%)

(%)

Gross fixed capital formation


Total
Annual rate Share in GDP

0.2
4.5
1.3

Coverage of
imports through
exports
(%)

(%)
54.0
58.9
60.3

(%)
137.7
48.9
51.9

20.5
11.7
1.0
12.4

62.1
74.5
83.4
85.7

3)

96.8
64.9
46.1
62.8

22.8
3.6
0.2
11.7

5.6
7.7
4.9

87.4
89.3

4)

41.2
25.5
25.4

4.9
2.4
8.8

Total

Gross international reserves


NBR
Total
of which:
convertible
currencies

(%)
0.4
12.6
9.5

4)

Banks

(EUR mill.)
1,237.3
972.9
1,255.2

1997
1998
1999
2000

7,469
7,400
7,977
11,273

9,222
9,718
9,164
13,140

1,753
2,318
1,187
1,867

81.0
76.1
87.0
85.8

1,864.0
2,591.8
1,355.0
1,494.0

7,767.2
8,054.3
8,756.4
11,113.4

4,226.3
3,247.0
3,638.3
5,205.1

2,769.6
1,968.8
2,482.4
3,643.7

1,984.7
1,177.3
1,519.8
2,654.8

1,456.7
1,278.2
1,155.9
1,561.4

2001
2002
2003

12,722
14,675
15,614

16,045
17,427
19,569

3,323
2,752
3,955

79.3
84.2
79.8

2,488.0
1,623.0
2,877.0

13,507.1
14,648.3
15,379.0

7,230.9
8,051.3
8,251.6

5,509.0
7,009.0
7,491.6

4,445.2
5,876.8
6,373.6

1,721.9
1,042.3
760.0

Source: National Institute of Statistics, Ministry of Public Finance, and National Bank of Romania.
1) Annual change; 2) Starting 1998, except for motorcars and motorcycles, included under sale, maintenance and repair of cars and motorcycles, retail trade
of car fuels; 3) According to the National Institute of Statistics' specifications, the average net wage adjusted was used in order to ensure compatibility with
the previous years levels; 4) Annual averages calculated based on monthly data published by NIS.

212

National Bank of Romania

Annual
Report
2003

Statistical Section

1. MAIN MACROECONOMIC INDICATORS


(continued)
Period

Inflation rate
average 5) end of period
6)
(%)

Revenues

Government budget
ExpendiDeficit()/
tures
Surplus(+)

61.7
27.8
56.9

(ROL bill.)
8,860.2
12,888.3
18,372.8

(ROL bill.)
10,930.4
15,858.0
23,732.0

(ROL bill.)
2,070.2
2,969.7
5,359.2

Percentage of
gov't budget
balance in GDP

Reference rate
7)

Average interest rates


of credit institutions
(non-bank clients)

4.2
4.1
4.9

(% p.a.)
65.30
39.60
35.00

lending rate
(% p.a.)
91.40
48.60
55.80

deposit rate
(% p.a.)
58.90
36.50
38.10

1994
1995
1996

(%)
136.7
32.3
38.8

1997
1998
1999
2000

154.8
59.1
45.8
45.7

151.4
40.6
54.8
40.7

43,834.5
67,215.5
93,239.8
120,342.3

52,896.6
77,616.6
106,886.7
149,167.8

9,062.1
10,401.0
13,646.9
28,825.5

3.6
2.8
2.5
3.6

47.22
38.00
35.00
35.00

63.70
56.90
65.90
53.48

51.60
38.30
45.40
32.74

2001
2002
2003

34.5
22.5
15.3

30.3
17.8
14.1

148,203.1
179,205.5
252,447.3

184,012.2
226,823.6
281,450.7

35,809.1
47,618.1
29,003.4

3.1
3.1
1.5

35.00
8) 20.40
18.85

45.13
35.16
25.43

26.40
18.69
10.83

Money velocity
Broad money
end of period average (for
money
end of period
average
velocity)

Period

(%)

Foreign assets in convertible


currencies (including gold) 8)
gross

net

Domestic credit 8)
of which:
Total, net
to nongovernment

1994
1995
1996

(ROL bill.)
10,648.7
18,278.1
30,334.6

(ROL bill.)
6,652.2
13,085.0
22,184.8

(times)
4.7
3.9
3.6

(times)
7.5
5.5
4.9

(ROL bill.)
5,490.4
6,263.8
12,175.8

(ROL bill.)
2,482.4
2,469.9
683.1

(ROL bill.)
9,183.4
17,399.0
31,450.0

(ROL bill.)
9,484.5
16,435.4
26,841.4

1997
1998
1999
2000

62,150.4
92,529.9
134,114.3
185,060.0

44,934.3
69,925.4
106,279.5
149,229.1

4.1
4.0
4.1
4.3

5.6
5.3
5.1
5.4

40,143.4
42,499.7
68,333.7
127,977.7

15,935.3
16,162.1
41,380.8
92,911.7

47,432.0
79,919.4
101,340.4
112,885.5

35,900.7
59,086.5
57,719.5
75,007.1

2001
2002
2003

270,512.0
373,712.5
460,741.3

212,700.3
299,770.1
393,179.3

4.3
4.0
4.1

5.5
5.0
4.8

204,530.8
284,628.2
343,458.6

168,511.7
236,923.5
252,094.3

143,244.7
200,221.2
300,942.9

118,254.5
178,728.0
302,879.4

Period
annual
average 9)

Exchange rate on forex market


end of period
annual
end of period
9)
average

Total
population

Total

Employment 8)
of which:
of which:
Employees private sector

Unemployment 8)

Unemployment rate 8)

1994
1995
1996

(ROL/EUR)
1,967.14
2,629.51
3,862.90

(ROL/EUR)
2,134
3,299
5,005

(ROL/USD)
1,655.09
2,033.28
3,082.60

(ROL/USD)
1,767
2,578
4,035

(thou.pers.)
22,730.6
22,681.0
22,607.6

(thou.pers.)
10,011.0
9,493.0
9,379.0

(thou.pers.)
6,201.0
6,048.0
5,894.0

(thou.pers.)
1,111.4
1,364.0
1,332.0

(thou.pers.)
1,223.9
998.4
657.6

(%)
10.9
9.5
6.6

1997
1998
1999
2000

8,090.92
9,989.25
16,295.57
19,955.75

8,867
12,788
18,331
24,118

7,167.94
8,875.55
15,332.93
21,692.74

8,023
10,951
18,255
25,926

22,545.9
22,502.8
22,458.0
22,435.2

9,023.0
8,813.0
8,420.0
8,629.0

5,399.0
5,182.0
4,659.0
4,646.0

1,531.0
1,760.0
2,299.0
2,492.0

881.4
1,025.1
1,130.3
1,007.1

8.9
10.4
11.8
10.5

2001
2002
2003

26,026.89
31,255.25
37,555.87

27,881
34,919
41,117

29,060.86
33,055.46
33,200.07

31,597
33,500
32,595

22,408.4
21,794.8
21,734.0

8,563.0
8,329.0

4,613.0
4,615.0
4,333.8

2,606.0
2,744.0

826.9
760.6
658.9

8.8
8.4
7.2

5) Average year on year; 6) December current year/December previous year; 7) Until January 31, 2002, discount rate; 8) End of period; 9) ECU until December 1998.

National Bank of Romania

213

Annual
Report
2003

Statistical Section

2. GROSS DOMESTIC PRODUCT


GDP Formation
Period

TOTAL
of which:

Industry

Construction Agriculture, Transport


Telecomforestry,
and
munications
fishery
warehousing and postal
services

1996
1997
1998
1999

108,919.6
252,925.7
373,798.2
545,730.2

36,181.5
78,093.8
98,212.8
135,343.8

7,067.4
13,230.0
19,029.2
27,376.7

2000
803,773.1
2001
1,167,687.0
2002 a) 1,512,616.8
2003 b) 1,890,778.3

219,479.7
323,046.8
428,858.7
537,173.5

39,287.1
62,333.7
84,265.3
108,464.8

89,014.5
156,179.2
171,130.6
221,110.5

ROL billion (current prices)


20,949.2
7,658.9
2,145.8
45,532.8
17,270.7
5,394.6
53,772.9
23,862.3
11,664.7
72,805.2
33,982.6
20,306.6

1996
1997
1998
1999

100.0
100.0
100.0
100.0

33.2
30.9
26.3
24.8

6.5
5.2
5.1
5.0

19.2
18.0
14.4
13.3

2000
2001
2002 a)
2003 b)

100.0
100.0
100.0
100.0

27.3
27.7
28.4
28.4

4.9
5.3
5.6
5.7

11.1
13.4
11.3
11.7

3.9
6.1
4.8
1.2

6.9
8.0
5.3
1.5

0.8
19.3
4.5
2.3

4.2
1.3
10.4
3.3

6.3
11.1
7.6
7.0

18.1
28.1
7.0
3.0

1996
1997
1998
1999

2000
2.1
5.9
2001
5.7
4.4
2002 a)
5.0
6.0
2003 b)
4.9
4.6
1) Included in "Transport and warehousing".

Trade,
Immovable
Financial,
tourism,
dealings and banking and
hotels and other services insurance
restaurants
services
12,722.3
28,767.5
50,403.2
74,598.8

5,871.1
25,860.1
42,454.2
69,557.0

Government
sector

3,243.1
4,298.7
6,622.6
9,499.9

3,355.2
6,763.3
12,833.7
18,275.3

30,305.5
101,406.7
104,378.9
12,363.5
1)
x
131,230.7
156,554.4
23,006.5
682,929.4
843,483.8
composition (%)
7.0
2.0
11.7
5.4
3.0
6.8
2.1
11.4
10.2
1.7
6.4
3.1
13.5
11.4
1.8
6.2
3.7
13.7
12.7
1.7

34,599.7
42,486.9

50,047.9
116,813.2

6.2
10.0

3.8
12.6
13.0
1.5
1)
x
11.2
13.4
2.0
45.1
44.6
annual change (%)
0.8
31.8
12.5
14.9
14.2
11.7
1.6
10.8
6.8
22.6
13.7
1.8
4.1
0.1
1.9
4.9
0.1
0.4
3.8
0.6
4.9
1.1

4.3
1.1
7.0
2.1
3.4
1.5
0.8
32.0
6.4
5.2

3.1
2.7
3.4
3.3
4.3
3.6

7.1
3.2
3.4
4.1
19.8
9.2

GDP Utilization
Period

Final consumption
General
Private non- Households,
government
profit
effective *)
institutions
ROL billion (current prices)
89,939.4
75,288.8
14,273.9
376.7
x
218,619.8
186,238.2
30,999.8
1,381.8
x
337,468.6
x
x
x
310,922.7
484,361.4
x
x
x
453,308.0

Gross fixed
capital
formation

Change in
stocks

108,919.6
252,925.7
373,798.2
545,730.2

24,998.5
53,540.1
67,919.9
96,630.4

3,161.4
1,368.7
1,586.4
8,889.9

2000
803,773.1
2001
1,167,687.0
2002 a) 1,512,616.8
2003 b) 1,890,778.3

151,947.2
241,153.6
322,382.9
425,916.7

4,543.9
22,294.8
33,432.4
40,062.7

692,532.9
994,737.1
1,243,106.9
1,574,536.3

1996
1997
1998
1999

Total

1996
1997
1998
1999

100.0
100.0
100.0
100.0

23.0
21.2
18.2
17.7

2.9
0.5
0.4
1.6

82.6
86.4
90.3
88.8

2000
2001
2002 a)
2003 b)

100.0
100.0
100.0
100.0

18.9
20.7
21.3
22.5

0.6
1.9
2.2
2.1

86.2
85.2
82.2
83.3

3.9
6.1
4.8
1.2

5.7
1.7
5.7
4.8

x
x
x
x

7.0
4.3
1.1
2.5

2000
2.1
5.5
2001
5.7
10.1
2002 a)
5.0
8.2
2003 b)
4.9
9.2
Source: National Institute of Statistics

x
x
x
x

1996
1997
1998
1999

214

Total

Households

x
x
x
x
composition (%)
69.1
73.6
x
x
x
x
x
x
annual change (%)
8.0
3.7
0.3
x

Exports, net
General
government,
effective *)
x
x
26,545.9
31,053.5

9,179.7
17,865.5
30,003.9
26,371.8

x
x
x
x

x
x
x
x

634,590.4
917,185.7
1,151,355.9
1,451,166.3

57,942.5
77,551.4
91,751.0
123,370.0

45,250.9
90,498.5
86,305.4
149,737.4

13.1
12.3
x
x

0.3
0.5
x
x

x
x
83.2
83.1

x
x
7.1
5.7

8.4
7.1
8.0
4.8

x
x
x
x

x
x
x
x

79.0
78.5
76.1
76.7

7.2
6.6
6.1
6.5

5.6
7.8
5.7
7.9

1.5
8.5
1.8
x

20.3
30.2
65.1
x

x
x
x
1.1

x
x
x
19.1

x
x
x
x

0.2
6.8
3.1
7.1

20.4
0.2
5.8
4.6

x
x
x
x

1.4
x
x
x
6.3
x
x
x
2.4
x
x
x
6.9
x
x
x
a) Semi-final data; b) Provisional data. *) Based on ESA 1995

National Bank of Romania

Annual
Report
2003

Statistical Section

3. CONSUMER PRICES AND INDUSTRIAL PRODUCER PRICES


Period

Monthly change
Industrial
Consumer prices
food non-food servproducer Total
items
items
ices
prices

Index as compared to the end


of previous year
Industrial
Consumer prices
food non-food servproducer Total
items
items
ices
prices *)

- percent Index as compared to the same period


of previous year
Industrial
Consumer prices
food non-food servproducer Total
items
items
ices
prices *)

1999
2000
2001
2002
2003

*)
*)
*)
*)
*)

4.1
3.5
2.4
1.5
1.5

3.7
2.9
2.2
1.4
1.1

2.6
3.2
2.0
1.2
1.1

4.0
2.7
2.3
1.4
1.1

5.7
2.7
2.6
1.6
1.2

162.8
150.3
132.6
120.1
120.0

154.8
140.7
130.3
117.8
114.1

136.7
145.8
127.0
115.8
113.7

160.2
137.5
131.4
118.8
114.3

194.7
137.1
136.2
121.0
115.0

144.5
153.4
140.3
124.5
119.6

145.8
145.7
134.5
122.5
115.3

127.9
143.7
135.7
118.3
114.7

152.3
144.0
133.1
125.5
116.1

184.0
153.9
135.4
126.8
114.8

2000 Jan.
Feb.
Mar.

1) 2.3
2.8
2.7

4.3
2.2
1.8

6.8
3.1
2.4

2.4
1.3
1.2

3.3
2.0
1.7

1) 103.5
106.6
109.3

104.3
106.6
108.5

106.8
110.0
112.7

102.4
103.7
105.0

103.3
105.4
107.2

1) 162.6
163.4
161.0

156.8
155.7
149.0

142.4
143.2
140.1

160.0
156.8
145.8

189.8
188.6
182.6

Apr.
May
Jun.

3.0
2.0
5.2

4.8
1.8
2.8

2.3
1.9
3.7

5.3
1.9
3.0

8.9
1.5
0.8

112.5
115.1
120.6

113.7
115.7
119.0

115.2
117.4
121.8

110.6
112.7
116.1

116.8
118.5
119.4

155.3
150.7
152.6

148.9
144.0
140.9

136.2
134.6
138.9

148.1
146.0
140.2

186.4
162.8
146.7

Jul.
Aug.
Sep.

6.0
3.4
4.0

4.3
1.8
2.8

5.2
1.2
3.0

3.9
2.1
3.1

3.1
2.7
2.1

127.5
131.2
136.5

124.1
126.4
129.9

128.1
129.6
133.5

120.6
123.1
126.9

123.1
126.4
129.0

150.5
150.5
150.9

144.5
145.4
144.9

147.9
149.6
148.6

142.0
141.8
142.0

142.7
144.3
143.1

Oct.
Nov.
Dec.

3.8
2.5
2.2

2.8
2.8
2.5

3.1
2.9
3.0

2.3
3.5
2.4

3.0
1.5
1.6

142.3
146.9
150.3

133.5
137.3
140.7

137.6
141.5
145.8

129.9
134.4
137.5

132.9
134.9
137.1

152.2
150.9
150.3

142.9
141.3
140.7

148.1
147.4
145.8

140.2
137.8
137.5

137.9
136.6
137.1

2001 Jan.
Feb.
Mar.

2) 3.6
3.6
2.1

3.7
2.3
2.0

3.8
3.1
2.5

2.2
1.3
1.8

7.0
2.4
1.4

2) 103.6
107.3
109.6

103.7
106.0
108.2

103.8
107.0
109.7

102.2
103.5
105.4

107.0
109.6
111.1

2) 144.8
146.6
145.8

139.9
140.0
140.3

141.7
141.8
141.9

137.4
137.3
138.1

142.0
142.5
142.1

Apr.
May
Jun.

2.4
2.6
1.8

2.7
1.7
1.6

3.3
1.9
2.0

2.4
1.8
1.2

1.5
1.4
1.4

112.2
115.1
117.2

111.1
113.0
114.8

113.2
115.3
117.6

108.0
109.9
111.2

112.8
114.3
116.0

145.5
147.0
143.1

137.5
137.4
135.7

143.2
143.1
140.8

134.3
134.1
131.7

132.5
132.3
133.1

Jul.
Aug.
Sep.

2.7
2.7
2.1

1.3
2.2
1.9

0.1
0.7
1.4

2.0
3.9
2.3

2.8
2.5
2.5

120.4
123.7
126.3

116.3
118.9
121.2

117.8
118.6
120.2

113.4
117.8
120.6

119.3
122.3
125.3

139.1
139.0
137.1

131.8
132.4
131.2

134.0
133.3
131.3

129.3
131.6
130.7

132.8
132.6
133.1

Oct.
Nov.
Dec.

1.9
1.7
1.2

2.4
2.7
2.2

1.8
1.2
2.6

2.6
4.8
1.4

3.7
1.9
2.9

128.8
131.0
132.6

124.2
127.5
130.3

122.4
123.8
127.0

123.7
129.6
131.4

130.0
132.4
136.2

135.1
134.1
132.6

130.8
130.7
130.3

129.7
127.5
127.0

131.0
132.6
131.4

134.1
134.6
136.2

2002 Jan.
Feb.
Mar.

2.0
1.4
1.6

2.3
1.2
0.4

2.5
0.7
0.5

2.4
1.6
0.0

1.7
1.4
1.1

102.0
103.5
105.2

102.3
103.5
103.9

102.5
103.2
103.7

102.4
104.0
104.0

101.7
103.1
104.2

130.6
127.9
127.2

128.6
127.2
125.1

125.4
122.5
120.1

131.6
132.0
129.6

129.5
128.2
127.8

Apr.
May
Jun.

2.2
1.9
1.1

2.0
1.9
1.2

2.3
2.3
1.5

1.6
1.4
0.8

2.5
1.8
1.3

107.5
109.5
110.7

106.0
108.0
109.3

106.1
108.5
110.1

105.6
107.1
108.0

106.9
108.8
110.2

127.0
126.2
125.2

124.4
124.5
124.0

119.0
119.5
118.9

128.5
128.1
127.7

129.0
129.7
129.4

Jul.
Aug.
Sep.

2.6
1.1
1.4

0.5
0.8
0.6

1.0
0.3
0.1

1.5
1.0
1.1

2.0
2.0
0.9

113.6
114.8
116.4

109.8
110.7
111.4

109.0
109.3
109.4

109.6
110.7
111.9

112.4
114.6
115.6

125.0
123.0
122.2

123.0
121.3
119.8

117.6
117.1
115.5

127.0
123.5
122.0

128.3
127.7
125.7

Oct.
Nov.
Dec.

1.4
1.0
0.7

1.6
2.6
1.5

0.9
2.2
2.7

2.4
3.0
0.7

1.6
2.5
0.5

118.1
119.3
120.1

113.2
116.1
117.8

110.4
112.8
115.8

114.6
118.0
118.8

117.5
120.4
121.0

121.6
120.7
120.1

118.8
118.6
117.8

114.5
115.7
115.8

121.8
119.7
118.8

123.2
123.9
121.0

2003 Jan.
Feb.
Mar.

2.8
2.4
1.3

1.3
0.8
1.1

1.5
1.7
1.3

1.1
0.8
1.0

1.1
1.3
0.8

102.8
105.3
106.7

101.3
102.1
103.2

101.5
103.2
104.5

101.1
101.9
102.9

101.1
99.8
100.6

120.9
122.1
121.8

116.6
116.3
117.1

114.6
115.8
116.7

117.4
116.4
117.6

120.3
117.1
116.8

Apr.
May
Jun.

1.5
1.0
0.1

1.1
0.5
0.9

1.3
0.3
1.2

0.6
0.7
0.6

1.6
0.7
0.5

108.3
109.4
109.5

104.3
104.8
105.7

105.9
106.2
107.5

103.5
104.2
104.8

102.2
102.9
103.4

121.0
119.9
118.8

116.0
114.4
114.0

115.6
113.4
113.0

116.5
115.6
115.3

115.7
114.4
113.6

Jul.
Aug.
Sep.

1.1
0.9
3.3

1.2
0.3
2.1

1.1
0.7
0.2

1.5
0.6
4.5

0.6
2.1
1.4

110.7
111.7
115.3

107.0
107.3
109.6

108.7
107.9
108.1

106.4
107.0
111.8

104.0
106.2
107.7

117.0
116.8
119.0

114.8
114.2
115.9

115.4
114.3
114.4

115.3
114.9
118.7

112.1
112.1
112.7

Oct.
1.3
1.2
1.0
3.9
116.9 111.2
109.4
112.9 111.9
118.9 115.8
1.5
Nov.
1.7
2.1
0.7
1.6
118.9 112.8
111.7
113.7 113.7
119.7 114.5
1.4
Dec.
0.9
1.8
0.5
1.1
120.0 114.1
113.7
114.3 115.0
120.0 114.1
1.2
Source: National Institute of Statistics
*) Calculated on the basis of data published by National Institute of Statistics. 1) Reporting base: 1998. 2) Reporting base: 2000.

114.7
114.7
113.7

117.1
114.4
114.3

115.2
114.2
115.0

National Bank of Romania

215

Annual
Report
2003

Statistical Section

4. BALANCE OF PAYMENTS
Item

2001
Debit Balance Credit
19,576 2,488 19,474

2002
Debit Balance Credit
21,097 1,623 20,551

- EUR millions 2003*


Debit Balance
23,428 2,877

1. CURRENT ACCOUNT

Credit
14,716

2000
Debit Balance Credit
16,210 1,494 17,088

A. Goods and Services


a. Goods fob
b. Services
Transportation
Tourism
Other services

13,183
11,273
1,910
689
393
828

15,310
13,140
2,170
682
466
1,022

2,127
1,867
260
7
73
194

14,995
12,722
2,273
925
405
943

18,447
16,045
2,402
819
503
1,080

3,452
3,323
129
106
98
137

17,143
14,675
2,468
1,013
352
1,103

19,890
17,427
2,463
881
416
1,166

2,747
2,752
5
132
64
63

18,285
15,614
2,671
1,063
396
1,212

22,178
19,569
2,609
997
423
1,189

3,893
3,955
62
66
27
23

358
102
8
112
136

662
5
77
81
499

304
97
69
31
363

510
126
17
200
167

825
4
131
118
572

315
122
114
82
405

435
146
12
193
84

923
6
212
188
517

488
140
200
5
433

327
98
10
153
66

950
6
224
228
492

623
92
214
75
426

1,175
108
1,067

238
32
206

937
76
861

1,583
282
1,301

304
34
270

1,279
248
1,031

1,896
308
1,588

284
18
266

1,612
290
1,322

1,939
235
1,704

300
36
264

1,639
199
1,440

5,929

4,527

1,402

7,534

5,862

1,672

8,676

6,183

2,493

8,541

5,370

3,171

39
39
37
2

1
1

38
38
37
1

120
120
106
14

14
14
12
2

106
106
94
12

102
102
82
20

7
7

95
95
82
13

197
197
102
95

9
9

188
188
102
86

B. Incomes
Compensation of employees
Direct investment income
Portfolio investment income
Other capital investment
C. Current transfers
Public administration
Other sectors
2. CAPITAL AND FINANCIAL ACCOUNTS
A. Capital account
a. Capital transfers
Public administration
Other sectors
b. Purchases/Sales of non-produced
non-financial assets
B. Financial account
a. Direct investment
Abroad
In Romania
b. Portfolio investment
Assets
Liabilities
c. Other capital investment
1. Assets
Medium- and longterm loans and credits
Shortterm loans and credits
Longterm outstanding exports bills
Shortterm outstanding exports bills
Currency and cheques
Residents' deposits abroad
Other assets
longterm
shortterm
2. Liabilities
Credits and loans from the IMF
Medium and longterm loans
and credits
Shortterm loans and credits
Longterm outstanding imports bills
Shortterm outstanding imports bills
Currency and cheques
Nonresidents' deposits in Romania
Other liabilities
longterm
shortterm
d. In transit accounts
e. Barter and clearing accounts
f. Reserve assets (NBR)
Monetary gold
SDRs
Reserve position with the IMF
Foreign exchange
Other assets
3. NET ERRORS AND OMISSIONS
*) Provisional data.

216

5,890
1,224
51
1,173
527
41
486
4,043
739

4,526
63
37
26
390
11
379
2,952
1,182

1,364
1,161
14
1,147
137
30
107
1,091
443

7,414
1,457
53
1,404
1,303
22
1,281
4,629
887

5,848
145
35
110
646
30
616
3,381
947

1,566
1,312
18
1,294
657
8
665
1,248
60

8,574
1,448
43
1,405
968
8
960
6,102
1,185

6,176
254
61
193
562
8
554
3,430
469

2,398
1,194
18
1,212
406

406
2,672
716

8,344
1,838
7
1,831
893
15
878
5,222
694

5,361
247
43
204
370
7
363
3,333
629

2,983
1,591
36
1,627
523
8
515
1,889
65

48
70
53
227
5
332
4

4
3,304
123

156
55
61
204
8
661
37

37
1,770
106

108
15
8
23
3
329
33

33
1,534
17

74
25
88
274
1
380
45

45
3,742
75

126
29
87
169
127
404
5

5
2,434
132

52
4
1
105
126
24
40

40
1,308
57

86
20
22
303
56
682
16

16
4,917
112

67
9
20
127
31
184
31

31
2,961
104

19
11
2
176
25
498
15

15
1,956
8

25
21
14
231
23
353
27

27
4,528
205

77
19
13
243
30
222
25
1
24
2,704
98

52
2
1
12
7
131
2
1
3
1,824
107

2,616
249
68
212

1,077
279
67
215

1,539
30
1
3

2,729
322
98
261

1,620
255
94
224

1,109
67
4
37

3,772
456
34
218

2,171
348
40
149

1,601
108
6
69

2,964
717
32
198

2,016
302
38
225

948
415
6
27

36

54
27
15

15

26

49
35
1,037
2
5

1,030

10

5
8
1,022
2
10

1,030

191
66
65
1
17
8

28
81
80
1
9
1
1,666
5
7

1,654

163
15
15

8
7
1,666
5
7

1,654

189
136
136

38
8
10

10

51
98
98

24
1
1,905
2
5

1,898

138
38
38

14
7
1,895
2
5

1,898

402
10
10

44
10
337

332

25
25

53
1
1,357

1,354

402
15
15

9
9
1,020

1,022

92

92

816

816

870

870

294

294

National Bank of Romania

Annual
Report
2003

Statistical Section

5. ROMANIA'S INTERNATIONAL INVESTMENT POSITION


Item

- EUR millions; end of period 2002


2003*

1999

2000

2001

7,093.9
8,182.5
15,276.4

9,166.8
10,206.2
19,373.0

10,725.1
12,939.7
23,664.8

11,730.0
12,752.3
24,482.3

14,879.1
12,320.0
27,199.1

132.5
132.5

152.2
152.2

143.8
143.8

148.3
148.3

167.5
167.5

3.7
3.7

0.4
0.4

0.3
0.3

0.9
0.9

6.9
6.9

C. Other investment
- loans and credits
- long-term
- short-term
- currency and deposits
- other assets
- medium- and long-term
- short-term

5,563.9
3,991.5
3,498.7
492.9
1,181.4
391.0
140.0
251.0

6,409.9
4,395.3
3,898.8
496.5
1,593.7
420.8
148.4
272.4

7,286.5
4,608.1
4,185.7
422.4
2,244.2
434.2
154.6
279.6

5,594.1
3,717.3
3,527.9
189.4
1,506.9
369.9
140.1
229.8

4,654.0
3,129.4
2,929.8
199.7
1,216.2
308.4
126.7
181.7

D. Reserve assets (NBR)


- monetary gold
- foreign reserve
- currency and deposits
- with other monetary authorities
- with other foreign banks
- debt securities

2,482.4
962.6
1,519.8
256.1
87.0
169.1
1,263.7

3,643.7
989.0
2,654.8
532.1
228.4
303.7
2,122.7

5,509.0
1,063.8
4,445.2
779.0
450.9
328.1
3,666.2

7,009.0
1,132.2
5,876.8
683.7
0.3
683.4
5,193.1

7,491.6
1,118.0
6,373.6
595.3
0.6
594.7
5,778.3

A. Direct investment of non-residents in Romania


- participating interests
- other capital

5,446.5
5,275.2
171.4

6,965.7
6,696.1
269.6

8,656.0
8,218.7
437.3

8,516.6
7,840.9
675.7

10,072.3
9,016.0
1,056.3

B. Portfolio investment
- equity securities
- debt securities
- money market instruments

1,579.0
427.2
1,133.7
18.1

1,757.5
523.5
1,220.1
13.9

2,478.2
561.0
1,909.7
7.6

3,102.6
495.0
2,598.6
9.0

3,562.0
555.0
2,994.9
12.1

C. Other investment
- loans and credits
- long-term
- short-term
- currency and deposits
- other liabilities
- medium- and long-term
- short-term
*) Provisional data.

8,250.9
7,883.1
7,464.6
418.5
298.0
69.7
36.7
33.0

10,649.9
10,069.4
9,639.7
429.7
379.4
201.0
168.2
32.8

12,530.5
11,766.6
11,216.7
549.9
577.5
186.4
143.0
43.4

12,863.0
12,142.2
11,421.4
720.8
637.4
83.4
35.3
48.1

13,564.8
12,470.7
11,361.8
1,108.9
1,025.4
68.7
30.0
38.7

Net position
Assets
Liabilities
FOREIGN ASSETS
of which:
A. Direct investment of residents abroad
- participating interests
B. Portfolio investment
- debt securities

FOREIGN LIABILITIES
of which:

National Bank of Romania

217

Annual
Report
2003

Statistical Section

6. ROMANIA'S INTERNATIONAL INVESTMENT POSITION KEY INDICATORS


1999
3,715.5

2000
4,096.9

- EUR millions; end of period 2001


2002
2003*
4,390.7
3,711.7
3,085.7

8,756.4

11,113.4

13,507.1

14,648.3

3,924.9

5,001.1

5,651.0

6,040.6

6,469.9

2,844.4
454.4
1,625.2
389.7
157.9
205.0
12.2

3,553.7
486.8
2,043.2
553.6
215.9
225.0
22.9

3,989.5
437.9
2,171.4
829.3
269.0
225.0
50.0

4,050.3
408.3
2,033.5
1,074.0
228.0
170.0
109.6

4,006.4
474.5
1,688.0
1,273.1
170.2
220.0
103.1

Bilateral institutions
of which: Japan
USA
KFW
Eximbank Korea
Germany (convertible clearing account)

408.6
119.9
33.2
1.4
19.5
179.5

344.0
107.4
33.8
4.3
21.3
143.6

268.6
89.3
33.4
7.9
21.5
107.7

215.7
74.1
26.8
8.9
31.2
71.8

152.4
60.6
21.1
8.9
25.9
35.9

Bond issues
of which: Credit Deutsche Bank AG
ING Bank Schroeder Salomon Smith Barney
CS First Boston Switzerland
CS First Boston Germany
Merrill Lynch
Nomura Securities

622.3

306.8
24.8
290.8

914.4
150.0
150.0

306.8
26.9
280.8

1,356.8
150.0
300.0
600.0
306.8

1,750.0
850.0
300.0
600.0

2,300.0
1,400.0
300.0
600.0

49.6

148.3
40.7

3.0
33.1

1.6
23.0

0.5
10.5

2,233.1

2,472.5

3,119.4

3,141.9

3,199.1

287.9
65.8
201.7
7.8

339.5
102.8
217.8
10.5

367.8
122.8
223.8
16.8

337.4
129.4
193.3
14.6

336.3
140.7
183.4
12.2

393.0
1,552.2

225.4
1,907.7

394.5
2,357.2

567.8
2,236.8

434.2
2,428.7

Total MLT claims


Medium- and long-term external debt
I. Public debt
Multilateral institutions
of which: IMF
IBRD
EIB
EBRD
EU
CE - SDF

Private banks
Other private creditors
II. Publicly guaranteed debt
Multilateral institutions
of which: IBRD
EBRD
Nordic Investment Bank
Portfolio investment
Other private creditors
III. Private debt (non-guaranteed)

2,598.5

3,639.7

4,736.7

5,465.7

5,710.0

Multilateral institutions
of which: EBRD
EIB
Black Sea Bank
Nordic Investment Bank
IFC

703.8

27.4

764.6

29.0

789.6
406.3
82.9

28.4
272.1

760.2
414.2
123.9
11.5
28.5
182.1

821.1
460.4
138.1
12.0
28.0
182.6

Portfolio investment
of which: Petrom-BNP Paribas Luxembourg
BCR-Merrill Lynch
SNCFR-Marfa joint stock company-Deutsche Bank

118.3

30.0

80.3

158.4
125.0

280.8
125.0

120.0

260.0
125.0

120.0

48.2
1,728.3

46.6
2,748.2

62.1
3,726.6

66.2
4,358.5

54.6
4,574.2

Credit lines
Other private creditors
*) Provisional data.

218

15,379.0

National Bank of Romania

Annual
Report
2003

Statistical Section

7. MONEY MARKET INDICATORS


Period

Interbank operations
Transactions

Deposits

2000 Jan.
Feb.
Mar.

1-week
BUBID

1-week
BUBOR

Government securities (new and roll-over issues), of which:


Discount T-bills
Interest-bearing Treasury Interest-bearing bonds
bonds

daily
average
daily
average
average interest rate
nominal
average interest rate average interest rate
(% p.a.)
value
(ROL bill.) (% p.a.) (ROL bill.) (% p.a.)
(ROL bill.)
5,913.5
62.0
1,688.0
64.2
58.8
69.1
6,690.0
4,875.9
61.5
1,776.8
57.9
58.3
68.5
9,098.3
4,445.6
47.2
1,629.2
41.2
41.1
49.8
5,511.3

nominal
average
average
nominal
average
value
interest rate
yield
value
interest rate
(% p.a.) (USD mill.) (% p.a.) (ROL bill.) (% p.a.)
74.4

x
72.0

x
58.0

Apr.
May
Jun.

3,921.7
3,686.5
4,017.8

36.1
38.7
39.4

1,517.3
1,596.4
1,314.7

33.5
37.6
37.7

31.5
36.0
37.0

39.9
43.4
42.8

7,624.0
10,259.2
7,693.4

48.5
46.4
45.6

39.6

12.0

8.5
x
5.0

x
x
x

Jul.
Aug.
Sep.

5,049.3
3,674.3
4,354.3

36.6
35.5
44.3

1,574.8
1,410.6
1,832.5

34.5
33.9
44.1

33.0
34.4
40.8

39.3
40.3
47.6

7,552.7
4,598.2
5,286.7

41.8
43.6
46.6

16.7

x
x
5.0

x
x
x

Oct.
Nov.
Dec.

4,659.3
3,475.3
6,623.9

46.7
43.8
45.5

1,360.3
1,378.1
1,865.8

44.3
41.3
40.7

44.6
42.1
38.8

49.6
50.1
47.3

1,824.1
614.1
3,871.3

50.2
51.0
49.7

1.3
3.3
3.6

5.0
5.0
5.0

4,340.0

49.59
x
x

2001 Jan.
Feb.
Mar.

7,233.4
4,622.7
10,532.9

47.0
47.3
48.7

1,436.7
1,564.1
2,159.6

42.7
44.9
46.6

42.7
45.0
44.2

49.2
50.7
49.7

7,629.0
7,248.4
10,109.1

50.1
51.3
49.9

2.1
6.8
3.9

5.0
5.0
5.0

730.0

x
x
x

Apr.
May
Jun.

11,346.6
8,030.9
12,015.8

48.4
46.4
42.3

1,605.0
1,852.9
2,383.4

45.1
44.4
40.3

43.4
42.8
38.6

49.0
47.3
42.7

7,194.5
6,962.0
3,926.1

48.5
47.2
41.9

1.4
178.8
3.9

5.0
6.7
5.0

x
x
x

Jul.
Aug.
Sep.

20,227.9
20,795.2
23,626.6

37.2
35.1
35.4

2,527.0
1,813.0
2,521.9

33.8
29.4
34.3

31.1
29.7
31.0

37.0
35.0
38.2

4,693.0
3,292.8
6,189.5

35.9
36.4
37.8

1.0
8.1
2.5

5.0
5.0
5.0

x
x
x

Oct.
Nov.
Dec.

22,687.6
23,024.1
28,841.8

34.3
34.7
34.7

2,533.0
2,131.8
2,801.6

31.6
33.5
32.9

29.8
30.7
31.2

35.8
35.6
39.3

6,500.0
4,679.1
5,617.1

36.4
35.1
35.7

119.7
2.0
2.8

5.4
5.0
5.0

4.5

x
x
34.69

2002 Jan.
Feb.
Mar.

30,477.8
29,400.5
38,119.1

34.8
34.2
34.5

2,971.3
2,883.3
2,981.7

34.7
29.9
31.0

30.6
28.5
29.5

38.5
35.2
35.2

6,823.7
2,100.0
5,313.5

35.4
34.4
33.4

1.1
3.2
1.5

5.0
5.0
5.0

x
x
x

Apr.
May
Jun.

42,048.8
40,330.2
47,828.3

33.6
32.6
30.6

3,746.5
3,843.4
3,939.4

28.2
27.3
24.5

28.0
25.9
23.1

33.2
32.4
29.9

7,450.1
3,000.0
4,900.0

32.5
30.8
27.5

0.8
1.8
0.3

5.0
5.0
5.0

600.0
205.1

x
25.97
25.95

Jul.
Aug.
Sep.

49,429.5
52,902.5
56,820.9

28.7
27.1
25.8

3,928.7
3,805.3
3,501.6

22.7
20.7
22.4

20.0
18.0
19.0

27.8
26.9
25.0

3,600.0
4,000.3
4,500.0

25.4
24.8
24.0

0.8
2.9
1.4

5.0
5.0
5.0

763.5
409.8
1,005.2

25.53
24.80
23.92

Oct.
Nov.
Dec.

60,292.5
59,127.9
70,133.9

23.9
22.4
20.5

4,263.3
4,516.7
5,752.1

19.6
20.0
16.5

17.4
17.5
14.9

22.8
21.8
20.0

4,500.0
5,000.0
2,900.0

21.5
19.1
17.3

0.3
2.3
0.002

5.0
5.0
5.0

1,000.0
1,000.0
505.6

21.95
15.70
14.20

2003 Jan.
Feb.
Mar.

71,006.7
64,812.1
66,560.1

19.8
19.0
17.6

6,177.1
7,077.1
6,768.1

17.9
18.0
18.3

14.8
15.4
14.7

20.2
19.4
19.6

6,643.2
3,977.7
4,710.4

16.1
16.2
14.4

0.8
2.9
0.8

5.0
5.0
5.0

1,746.9
1,923.1
2,302.7

14.20
14.02
13.87

Apr.
May
Jun.

67,250.0
61,766.5
53,621.4

17.8
18.2
18.2

5,605.7
4,930.9
3,699.6

17.8
18.1
18.0

15.9
15.9
16.7

19.7
19.3
19.3

3,749.2
2,644.2
10,081.5

15.3
15.2
17.9

55.7
184.2
100.0

4.5
5.0
5.0

1,333.5
1,518.3
380.7

14.11
14.65
14.44

Jul.
Aug.
Sep.

61,332.0
59,024.7
69,229.4

18.2
18.7
19.2

4,612.6
4,835.0
5,462.4

18.0
18.4
19.0

16.5
17.0
17.0

19.0
19.8
20.0

1,245.0
634.7
233.5

15.2
15.5
15.7

x
x
x

351.5
97.0
20.5

14.45
13.90
13.90

Oct.
74,502.5
19.7
6,297.8
19.1
17.2
Nov.
64,850.8
20.3
5,202.0
20.2
18.3
Dec.
71,974.4
20.8
6,378.8
20.3
18.5
*) Bid margin (included in the calculation of CPI-indexed interest rate).

20.7
21.3
21.4

2,599.5
1,046.0
3,063.2

17.4
17.8
18.0

x
x
x

159.0
360.0

National Bank of Romania

x
5.00*
4.98*

219

Annual
Report
2003

Statistical Section

8a. OPEN-MARKET OPERATIONS PERFORMED BY THE NATIONAL BANK OF ROMANIA


Period

Reference
rate*
(% p.a.)

Reverse repo
Flow
Stock
daily
interest
daily
interest
average
rate
average
rate
(ROL bn.) (% p.a.) (ROL bn.) (% p.a.)

Repo
Flow
Stock
daily
interest
daily
interest
average
rate
average
rate
(ROL bn.) (% p.a.) (ROL bn.) (% p.a.)

Deposit taking
Flow
Stock
daily
interest
daily
interest
average
rate
average
rate
(ROL bn.) (% p.a.) (ROL bn.) (% p.a.)

2000 Jan.
Feb.
Mar.

35.0
35.0
35.0

x
x
x

x
x
x

x
x
x

x
x
x

274.5
467.4
309.6

59.2
53.3
35.0

2,878.1
1,971.3
986.9

60.1
59.9
43.2

Apr.
May
Jun.

35.0
35.0
35.0

x
x
x

x
x
x

x
x
x

x
x
x

222.3
304.5
159.4

28.0
35.1
35.3

566.2
889.5
1,398.7

31.4
37.7
39.3

Jul.
Aug.
Sep.

35.0
35.0
35.0

323.1
5.4

x
42.0
45.6

3,795.3
3,199.1

x
41.4
43.3

51.1

x
x
42.4

277.3

x
x
42.2

368.0
204.3
229.3

34.6
37.4
47.9

2,143.6
1,338.0
1,676.3

37.8
37.8
47.3

Oct.
Nov.
Dec.

35.0
35.0
35.0

262.8
287.2
145.7

49.8
46.6
42.3

3,076.7
5,122.2
2,673.8

49.9
49.1
47.8

36.1
38.6

x
42.4
45.2

42.0
52.3

x
43.3
46.7

11.6
15.0
550.8

49.0
45.5
47.8

2,116.9
268.3
3,817.2

49.0
48.1
49.2

2001 Jan.
Feb.
Mar.

35.0
35.0
35.0

474.1
424.1
79.6

49.1
49.6
49.0

4,232.0
6,696.8
4,015.0

49.5
49.8
49.8

4.1

x
x
50.0

1.5

20.4

50.0
x
50.0

17.6
255.8
719.1

48.5
49.6
49.2

4,558.7
1,852.0
7,927.0

49.3
49.6
49.6

Apr.
May
Jun.

35.0
35.0
35.0

459.4
400.6
79.6

47.8
46.4
42.4

4,783.6
8,207.2
3,909.3

47.9
47.3
46.0

57.2

55.0
x
x

152.6

55.0
x
x

160.2
256.1
700.0

47.5
46.0
41.0

8,706.8
5,448.1
9,221.1

49.0
47.2
42.9

Jul.
Aug.
Sep.

35.0
35.0
35.0

144.3
374.9
63.9

35.0
33.6
33.6

1,805.7
4,138.0
2,351.9

35.1
34.3
34.0

x
x
x

x
x
x

686.6
178.2
434.7

35.8
34.6
34.1

16,923.5
18,144.7
20,844.1

37.8
35.7
35.5

Oct.
Nov.
Dec.

35.0
35.0
35.0

323.1
283.9
138.4

33.9
33.8
33.6

4,925.3
4,842.5
1,735.4

33.9
34.0
33.8

139.0

x
x
38.0

960.9

x
x
38.0

657.0
419.3
664.4

34.7
34.7
34.4

19,897.7
20,060.7
24,835.1

34.7
34.9
34.9

2002 Jan.
Feb.
Mar.

35.0
34.6
34.2

229.0
349.5
145.6

33.9
33.8
33.4

2,531.8
4,280.2
1,972.2

33.9
33.9
33.7

135.0

40.2
x
x

668.0
191.3

39.8
40.3
x

482.8
836.2
763.9

35.0
34.4
34.2

26,619.1
26,007.6
33,946.1

34.9
34.9
34.8

Apr.
May
Jun.

34.1
32.2
30.6

435.3
152.6
40.7

31.7
30.5
26.2

3,031.5
4,194.3
824.8

32.0
31.0
29.3

x
x
x

x
x
x

1,251.3
896.9
923.7

32.4
30.7
28.4

37,654.5
35,826.8
42,847.0

34.2
33.3
31.2

Jul.
Aug.
Sep.

28.3
27.2
25.6

290.5
241.6
5.8

27.0
26.0
23.3

4,778.4
5,048.0
959.9

27.1
26.4
25.4

18.6

x
31.0
x

92.5

x
31.0
x

1,292.8
958.3
1,618.3

27.2
25.5
23.8

45,475.1
48,557.7
54,072.4

29.3
27.7
26.0

Oct.
Nov.
Dec.

23.8
22.2
20.4

183.0
73.3

21.9
21.0
x

1,729.5
1,644.2
49.7

22.0
21.2
21.0

x
x
x

x
x
x

1,674.4
1,662.9
2,147.0

22.2
20.4
19.6

56,539.6
54,703.9
63,602.2

24.2
22.6
20.8

2003 Jan.
Feb.
Mar.

19.6
19.2
18.4

x
x
x

x
x
x

x
x
x

x
x
x

2,754.7
3,139.7
2,952.7

19.2
18.4
17.4

65,525.0
58,734.3
60,808.1

20.0
19.1
17.6

Apr.
May
Jun.

17.4
17.9
18.2

x
x
x

x
x
x

x
x
x

x
x
x

2,747.5
2,659.8
1,751.3

17.9
18.2
18.3

62,079.0
57,926.7
49,781.3

17.8
18.2
18.2

Jul.
Aug.
Sep.

18.2
18.2
19.11

x
x
x

x
x
x

x
x
x

x
x
x

2,798.3
2,704.7
3,106.7

18.3
19.1
19.3

57,592.5
54,414.2
64,607.5

18.3
18.8
19.2

x
x
x

x
x
x

x
x
x

x
x
x

3,115.1
2,775.7
3,590.7

20.2
20.4
21.3

67,318.9
58,716.0
65,219.6

19.8
20.3
21.0

Oct.
19.25

Nov.
20.19

Dec.
20.41

*) Until January 31, 2002, discount rate

220

National Bank of Romania

Annual
Report
2003

Statistical Section

8b. STANDING FACILITIES


GRANTED TO BANKS BY THE
NATIONAL BANK OF ROMANIA
Period

Lending
volume
interest
(ROL bn.) rate (%
p.a.)

8c. REQUIRED RESERVES

Deposit
volume
interest
(ROL bn.) rate (%
p.a.)

Interest rate on banks' reserves (%


p.a.)

2000 Jan.
Feb.
Mar.

95.0
95.0
95.0

x
x
x

31.00
31.00
30.50

3.40
3.40
3.40

2.10
2.20
2.20

30.0
30.0
30.0

foreign
currency
20.0
20.0
20.0

Apr.
May
Jun.

95.0
75.0
75.0

x
5.0
5.0

28.00
26.50
26.00

3.40
3.10
3.10

2.20
2.10
2.10

30.0
30.0
30.0

20.0
20.0
20.0

Jul.
Aug.
Sep.

75.0
75.0
75.0

41.0
107.0

5.0
5.0
5.0

25.00
25.00
25.00

3.10
3.10
3.10

2.10
2.10
2.10

30.0
30.0
30.0

20.0
20.0
20.0

Oct.
Nov.
Dec.

75.0
75.0
75.0

315.0
127.0
552.6

5.0
5.0
5.0

25.50
25.50
25.50

3.10
3.10
3.10

2.10
2.10
2.10

30.0
30.0
30.0

20.0
20.0
20.0

2001 Jan.
Feb.
Mar.

75.0
75.0
75.0

150.0

5.0
5.0
5.0

25.50
25.50
25.00

3.10
3.00
2.90

2.10
2.10
2.00

30.0
30.0
30.0

20.0
20.0
20.0

Apr.
May
Jun.

68.0
82.0

75.0
75.0
75.0

33.0
320.0

5.0
5.0
5.0

25.00
25.00
24.00

2.90
2.80
2.70

2.00
2.00
2.00

30.0
30.0
30.0

20.0
20.0
20.0

Jul.
Aug.
Sep.

75.0
75.0
75.0

871.5
607.0
221.0

5.0
5.0
5.0

23.00
23.00
23.00

2.50
2.50
2.50

2.00
2.00
2.00

27.0
27.0
27.0

20.0
20.0
20.0

Oct.
Nov.
Dec.

65.0
65.0
65.0

75.0
8.5
717.0

6.0
6.0
6.0

20.00
19.00
17.00

2.20
1.00
1.00

1.70
1.00
1.00

25.0
25.0
25.0

20.0
20.0
20.0

2002 Jan.
Feb.
Mar.

440.0
1.0

65.0
65.0
65.0

493.0
20.0
300.0

6.0
6.0
6.0

15.00
15.00
15.00

1.00
1.00
1.00

1.00
1.00
1.00

25.0
25.0
25.0

20.0
20.0
20.0

Apr.
May
Jun.

65.0
65.0
65.0

1,117.0
851.5
958.1

6.0
6.0
6.0

12.50
11.50
11.50

1.00
1.00
1.00

1.00
1.00
1.00

22.0
22.0
22.0

22.0
22.0
22.0

Jul.
Aug.
Sep.

65.0
1) 45.0
45.0

1,329.0
1,555.5
825.5

6.0
2) 5.3
5.0

11.00
10.00
*) 8.00

1.00
1.00
1.00

1.00
1.00
1.00

22.0
22.0
22.0

22.0
22.0
22.0

Oct.
Nov.
Dec.

120.0

45.0
45.0
45.0

980.5

1,534.0

5.0
5.0
5.0

8.00
8.00
*) 7.00

1.00
1.00
1.00

1.00
1.00
1.00

22.0
*) 18.0
18.0

22.0
*) 25.0
25.0

2003 Jan.
Feb.
Mar.

45.0
3) 45.0
30.0

2,296.0
30.0

5.0
5.0
5.0

6.25
6.25
6.25

0.75
0.75
0.75

1.00
1.00
1.00

18.0
18.0
18.0

25.0
25.0
25.0

Apr.
May
Jun.

30.0
30.0
30.0

40.5

122.0

5.0
5.0
5.0

6.25
6.25
6.25

0.75
0.75
0.75

1.00
1.00
1.00

18.0
18.0
18.0

25.0
25.0
25.0

Jul.
Aug.
Sep.

30.0
30.0
30.0

98.0
73.0
1,070.0

5.0
5.0
5.0

*) 6.00
6.00
6.00

0.75
0.75
0.75

1.00
1.00
1.00

18.0
18.0
18.0

25.0
25.0
25.0

Oct.

30.0
2,139.5
5.0
Nov.

30.0
382.0
5.0
Dec.

30.0 10,549.0
5.0
1) 65.0 percent until August 19, 2002, 2) 6.0 percent until
August 19, 2002; 5.0 percent since August 20, 2002; 3)
30.0 percent since March 31, 2003.

National Bank of Romania

ROL

USD

EUR

Reserve ratio
(%)
ROL

6.00
0.75
1.00
18.0
25.0
6.00
0.75
1.00
18.0
25.0
6.00
0.75
1.00
18.0
25.0
*) Starting period the 24th of current month - the 23rd of
following month.

221

Annual
Report
2003

Statistical Section

9a. INTERBANK FOREIGN EXCHANGE MARKET


Period

222

Turnover*
(EUR mill.)

end of period

Exchange rate (ROL/EUR)


Exchange rate (ROL/USD)
average
average
end of period
ROL/EUR
percentage change
ROL/USD
percentage change
as compared to:
as compared to:
end of
same period of
end of
same period
previous year previous year
previous year of previous
year
16,295.57
47.0
63.1
18,255
15,332.93
70.9
72.8
19,955.75
26.4
22.5
25,926
21,692.74
42.3
41.5
26,026.89
22.6
30.4
31,597
29,060.86
23.2
34.0
31,255.25
21.4
20.1
33,500
33,055.46
6.6
13.7
37,555.87
18.5
20.2
32,595
33,200.07
-1.9
0.4

1999
2000
2001
2002
2003

1,700.9
2,066.2
2,309.6
3,110.3
3,004.3

18,331
24,118
27,881
34,919
41,117

2000 Jan.
Feb.
Mar.

1,729.6
1,693.5
2,164.8

18,115
18,409
18,621

18,635.74
18,420.75
18,538.16

2.3
1.2
1.8

41.3
33.9
21.2

18,465
18,892
19,480

18,352.55
18,701.71
19,207.09

2.0
3.9
6.7

61.6
52.4
36.7

Apr.
May
Jun.

2,000.2
2,097.2
1,727.1

18,224
19,301
20,434

18,713.34
18,507.40
19,970.22

2.8
1.6
9.7

18.2
14.2
22.1

20,076
20,697
21,358

19,758.50
20,393.18
21,030.64

9.8
13.3
16.9

33.6
33.8
33.5

Jul.
Aug.
Sep.

1,838.6
2,183.1
2,833.4

20,245
20,564
21,277

20,317.68
20,295.04
20,565.08

11.6
11.4
12.9

23.2
18.8
19.7

21,890
22,973
24,169

21,601.38
22,421.61
23,601.71

20.0
24.6
31.1

35.7
39.3
44.3

Oct.
Nov.
Dec.

2,395.9
2,199.0
1,932.4

20,896
21,986
24,118

21,001.26
21,492.62
23,011.77

15.3
18.0
26.4

17.4
19.0
26.4

24,850
25,364
25,926

24,537.86
25,102.77
25,603.83

36.3
39.5
42.3

46.9
43.9
42.3

2001 Jan.
Feb.
Mar.

1,710.6
1,591.1
2,107.7

24,657
24,939
24,270

24,645.91
24,729.00
24,848.53

7.1
7.5
8.0

32.3
34.2
34.0

26,513
27,059
27,566

26,243.05
26,815.30
27,299.05

2.5
4.7
6.6

43.0
43.4
42.1

Apr.
May
Jun.

2,121.9
2,307.6
2,127.5

25,078
24,408
24,696

24,879.94
24,909.79
24,732.10

8.1
8.2
7.5

33.0
34.6
23.8

28,214
28,754
29,160

27,878.25
28,493.36
28,952.48

8.9
11.3
13.1

41.1
39.7
37.7

Jul.
Aug.
Sep.

2,910.9
2,533.2
2,052.8

25,960
27,537
27,923

25,266.09
26,852.97
27,548.52

9.8
16.7
19.7

24.4
32.3
34.0

29,623
30,044
30,465

29,364.32
29,808.96
30,235.90

14.7
16.4
18.1

35.9
32.9
28.1

Oct.
Nov.
Dec.

3,093.4
2,316.7
2,841.2

28,073
27,970
27,881

27,899.05
27,806.28
28,204.55

21.2
20.8
22.6

32.8
29.4
22.6

31,015
31,532
31,597

30,785.57
31,298.50
31,555.65

20.2
22.2
23.2

25.5
24.7
23.2

2002 Jan.
Feb.
Mar.

2,752.7
2,794.5
2,769.8

27,773
28,214
28,684

28,280.82
28,053.87
28,698.30

0.3
-0.5
1.8

14.7
13.4
15.5

32,184
32,599
32,887

32,052.04
32,233.30
32,765.71

1.6
2.1
3.8

22.1
20.2
20.0

Apr.
May
Jun.

3,460.4
2,673.0
3,018.6

30,152
31,446
33,296

29,315.84
30,774.34
31,912.02

3.9
9.1
13.1

17.8
23.5
29.0

33,445
33,533
33,477

33,101.59
33,490.95
33,392.25

4.9
6.1
5.8

18.7
17.5
15.3

Jul.
Aug.
Sep.

3,480.3
3,569.0
2,865.4

32,209
32,722
32,508

32,721.31
32,365.13
32,481.22

16.0
14.8
15.2

29.5
20.5
17.9

32,888
33,215
33,055

32,979.04
33,093.77
33,116.14

4.5
4.9
4.9

12.3
11.0
9.5

Oct.
Nov.
Dec.

3,894.0
3,065.0
2,981.5

33,085
33,346
34,919

32,629.40
33,592.07
34,238.67

15.7
19.1
21.4

17.0
20.8
21.4

33,524
33,569
33,500

33,242.22
33,544.67
33,653.84

5.3
6.3
6.6

8.0
7.2
6.6

2003 Jan.
Feb.
Mar.

2,835.7
2,972.8
2,986.8

35,860
35,718
36,168

35,594.18
35,442.62
35,823.05

4.0
3.5
4.6

25.9
26.3
24.8

33,130
33,121
33,189

33,448.00
32,883.95
33,134.50

-0.6
-2.3
-1.5

4.4
2.0
1.1

Apr.
May
Jun.

2,619.5
2,778.7
2,154.2

36,952
38,084
37,671

36,559.95
37,617.24
38,062.76

6.8
9.9
11.2

24.7
22.2
19.3

33,214
32,156
33,014

33,702.67
32,501.71
32,616.43

0.1
-3.4
-3.1

1.8
-3.0
-2.3

Jul.
Aug.
Sep.

3,398.7
3,549.1
3,320.7

37,161
37,240
38,466

37,165.70
37,183.48
37,924.27

8.5
8.6
10.8

13.6
14.9
16.8

32,793
34,140
32,952

32,676.61
33,359.14
33,799.32

-2.9
-0.9
0.4

-0.9
0.8
2.1

Oct.
3,393.9
39,456
Nov.
2,917.3
40,193
Dec.
3,124.8
41,117
*) Annual data are monthly averages.

38,807.48
39,912.65
40,577.05

13.3
16.6
18.5

18.9
18.8
18.5

33,901
33,523
32,595

33,157.17
34,108.80
33,012.55

-1.5
1.4
-1.9

-0.3
1.7
-1.9

National Bank of Romania

Annual
Report
2003

Statistical Section

9b. ACTIVITY OF FOREIGN EXCHANGE BUREAUX


- USD thousands Period
Total
2,148,552.7
2,605,977.1
3,618,779.1
4,894,478.2
6,826,898.2

Purchases
Banks
710,797.0
735,039.1
1,202,827.6
2,183,090.3
3,015,738.4

Total
1,802,699.2
2,304,126.0
2,963,994.7
3,473,175.1
4,931,274.3

Sales
Banks
372,085.6
488,844.3
553,383.9
771,878.9
1,138,217.1

Other
1,437,755.7
1,870,938.0
2,415,951.5
2,711,387.9
3,811,159.7

Other
1,430,613.6
1,815,281.7
2,410,610.8
2,701,296.2
3,793,057.1

2000 Jan.
Feb.
Mar.

178,089.2
200,591.7
222,455.3

71,228.9
82,858.2
83,604.0

106,860.2
117,733.4
138,851.2

129,767.3
141,868.9
165,061.4

22,761.7
24,111.2
27,078.2

107,005.6
117,757.7
137,983.2

Apr.
May
Jun.

202,434.6
234,453.1
220,847.4

70,723.5
52,593.8
44,924.6

131,711.1
181,859.3
175,922.8

168,727.9
200,580.4
196,533.5

35,104.0
51,148.9
46,671.6

133,623.9
149,431.5
149,861.9

Jul.
Aug.
Sep.

207,671.4
247,241.4
223,628.4

58,440.8
75,813.6
58,615.4

149,230.6
171,427.9
165,013.0

184,092.9
218,440.1
210,223.8

34,968.9
46,535.2
44,880.7

149,123.9
171,904.8
165,343.1

Oct.
Nov.
Dec.

230,740.5
219,147.9
218,676.3

54,566.1
43,525.2
38,145.1

176,174.5
175,622.7
180,531.2

227,531.7
227,700.1
233,598.0

51,189.8
51,340.1
53,053.9

176,341.9
176,360.0
180,544.1

2001 Jan.
Feb.
Mar.

205,315.1
214,380.0
256,311.5

55,485.3
72,104.9
86,888.3

149,829.8
142,275.1
169,423.2

186,802.2
173,565.9
204,782.4

36,456.6
31,088.6
35,124.3

150,345.6
142,477.3
169,658.1

Apr.
May
Jun.

256,428.5
286,517.2
298,248.3

81,500.8
99,504.4
104,284.4

174,927.7
187,012.8
193,963.9

220,751.4
220,930.1
236,648.7

45,582.0
35,706.1
42,818.7

175,169.4
185,224.0
193,830.0

Jul.
Aug.
Sep.

327,998.7
379,835.6
343,436.8

101,690.9
124,479.3
130,800.1

226,307.8
255,356.3
212,636.7

282,902.1
312,483.8
254,911.1

56,151.6
58,326.2
44,209.4

226,750.5
254,157.6
210,701.7

Oct.
Nov.
Dec.

381,442.4
343,247.3
325,617.7

134,236.6
111,353.0
100,499.6

247,205.8
231,894.3
225,118.1

294,619.4
288,118.5
287,479.1

48,283.7
57,173.5
62,463.2

246,335.7
230,945.0
225,015.9

2002 Jan.
Feb.
Mar.

264,128.4
322,617.1
349,268.3

97,590.0
155,119.6
158,828.3

166,538.4
167,497.5
190,440.1

230,644.7
205,050.9
235,703.0

65,595.4
38,744.2
46,069.1

165,049.3
166,306.7
189,634.0

Apr.
May
Jun.

380,347.9
357,730.0
401,020.7

166,331.1
149,710.2
188,983.4

214,016.8
208,019.8
212,037.3

272,112.6
264,248.8
281,691.2

56,714.9
57,626.2
69,497.7

215,397.7
206,622.6
212,193.5

Jul.
Aug.
Sep.

482,879.1
525,984.6
463,786.3

227,396.8
251,053.6
216,796.3

255,482.2
274,931.0
246,990.0

340,257.6
336,142.9
307,796.3

85,295.0
62,930.4
62,233.3

254,962.6
273,212.5
245,563.0

Oct.
Nov.
Dec.
2003 Jan.
Feb.
Mar.

481,468.5
410,940.9
454,306.4
385,968.4
441,776.0
450,220.3

221,688.2
168,338.5
181,254.2
160,371.4
205,641.2
191,816.6

259,780.3
242,602.4
273,052.2
225,596.9
236,134.8
258,403.6

321,843.3
317,237.5
360,446.3
314,071.7
318,152.5
340,823.5

62,051.9
75,582.8
89,538.1
89,404.4
81,469.5
84,655.2

259,791.4
241,654.7
270,908.2
224,667.3
236,682.9
256,168.3

Apr.
May
Jun.

483,394.9
553,996.2
559,111.8

205,422.2
233,368.0
243,454.9

277,972.6
320,628.2
315,656.8

369,826.3
417,493.5
401,385.0

91,490.6
99,159.5
86,843.2

278,335.7
318,334.0
314,541.8

Jul.
Aug.
Sep.

651,335.6
735,467.2
670,378.2

300,190.4
347,292.0
303,567.3

351,145.2
388,175.2
366,810.9

440,930.2
463,072.4
455,572.8

90,758.1
78,971.6
92,802.7

350,172.1
384,100.7
362,770.1

Oct.
Nov.
Dec.

683,824.2
544,021.6
667,403.8

318,374.6
223,639.9
282,599.8

365,449.7
320,381.7
384,804.0

463,583.5
428,220.2
518,142.7

99,625.2
109,829.9
133,207.1

363,958.3
318,390.4
384,935.6

1999
2000
2001
2002
2003

National Bank of Romania

223

Annual
Report
2003

Statistical Section

10a. CAPITAL MARKET - BUCHAREST STOCK EXCHANGE


Period

Number of
shares traded
(thousand)

Number of
trades

2000 Jan.
Feb.
Mar.

142,429
142,124
126,827

65,785
69,210
53,241

182
131
106

8,318
8,113
6,735

605.2
616.3
535.2

564.3
572.9
493.9

x
x
x

Apr.
May
Jun.

114,478
136,712
560,725

42,015
52,759
41,294

87
175
529

8,008
8,057
8,092

505.5
527.1
539.4

475.5
488.3
490.8

x
x
x

Jul.
Aug.
Sep.

65,427
98,087
106,701

30,480
33,978
34,582

91
100
97

8,825
8,423
10,564

573.8
472.3
505.9

501.7
464.8
504.8

x
x
x

Oct.
Nov.
Dec.

121,042
86,966
124,921

29,088
25,379
19,078

159
72
121

10,797
10,208
11,019

528.9
506.2
544.7

517.8
486.7
510.8

1,000.0
967.0
1,236.8

2001 Jan.
Feb.
Mar.

137,572
136,680
75,466

29,389
25,338
25,405

128
725
103

23,127
23,056
16,810

603.7
598.1
554.2

561.2
570.8
476.4

1,357.5
1,083.6
1,056.1

Apr.
May
Jun.

41,185
94,996
169,188

12,929
21,414
29,507

45
660
420

17,911
17,285
22,233

562.5
583.0
648.6

464.0
476.8
516.0

1,044.3
1,069.0
1,356.4

Jul.
Aug.
Sep.

118,560
129,533
271,835

27,961
38,471
40,437

511
214
238

23,365
21,745
37,531

668.7
776.1
713.8

502.2
558.9
471.3

1,644.3
2,295.7
2,200.0

Oct.
Nov.
Dec.

328,836
244,973
528,960

39,264
43,223
24,243

214
265
289

37,994
39,394
38,573

712.3
757.6
754.9

466.8
494.5
486.1

2,405.8
2,823.7
2,700.7

2002 Jan.
Feb.
Mar.

188,365
211,714
191,410

35,584
37,947
32,086

240
236
263

41,539
43,896
42,569

766.7
797.8
879.8

522.6
545.1
608.9

2,288.3
2,304.9
2,357.3

Apr.
May
Jun.

432,890
378,111
238,065

52,441
59,169
60,747

537
465
470

64,513
64,957
61,970

1,184.8
1,260.6
1,241.2

794.5
844.2
832.4

4,493.7
4,447.8
4,292.8

Jul.
Aug.
Sep.

200,388
236,773
594,655

55,366
61,787
77,345

390
435
1,147

68,207
77,644
98,532

1,254.0
1,393.3
1,638.6

828.5
927.9
1,092.7

4,377.3
5,424.3
7,337.3

Oct.
Nov.
Dec.

589,636
665,750
157,473

91,503
81,580
43,630

1,162
1,398
356

98,868
86,069
91,580

1,655.3
1,560.6
1,659.1

1,105.2
1,036.9
1,103.1

6,875.9
5,877.4
6,015.2

2003 Jan.
Feb.
Mar.

234,766
281,970
769,949

51,123
44,278
37,333

581
630
989

95,532
97,812
93,542

1,774.6
1,744.4
1,677.3

1,171.5
1,142.5
1,093.4

6,281.0
5,466.9
5,226.3

Apr.
May
Jun.

238,042
200,573
346,793

34,550
36,016
41,571

1,179
450
767

98,686
99,895
105,135

1,758.4
1,784.3
1,812.4

1,139.6
1,141.3
1,205.4

5,905.9
5,964.9
6,124.9

Jul.
Aug.
Sep.

286,058
477,212
316,100

39,335
33,918
32,823

702
1,787
731

107,591
110,181
109,385

1,821.7
1,870.8
1,876.0

1,211.6
1,249.2
1,232.3

6,184.0
6,385.2
6,162.5

Turnover
(ROL bill.)

Market
capitalisation
(ROL bill.)

BET index
(points)

BET-C index
(points)

BET-FI index
(points)

Oct.
385,065
33,908
758
110,446
1,909.9
1,245.2
Nov.
325,134
31,808
766
119,046
2,043.8
1,332.2
Dec.
244,717
23,417
723
121,866
2,171.9
1,390.4
Source: Bucharest Stock Exchange (BSE)
Note: Data concerning market capitalisation, BET, BET-C and BET-FI index refer to the last trading session of the month.

224

6,842.9
7,602.8
8,014.2

National Bank of Romania

Annual
Report
2003

Statistical Section

10b. CAPITAL MARKET - RASDAQ


Period

Number of
shares traded
(thousand)

Number of
trades

Turnover
(ROL bill.)

Market
capitalisation
(ROL bill.)

RASDAQ-C
(points)

RAQ I
(points)

RAQ II
(points)

2000 Jan.
Feb.
Mar.

69,731
90,642
171,708

10,858
15,469
17,408

287
304
468

18,765
18,905
18,736

700.2
699.8
677.4

x
x
x

x
x
x

Apr.
May
Jun.

126,873
62,588
75,825

13,117
13,226
12,355

254
166
156

19,118
20,546
19,945

682.3
698.4
688.8

x
x
x

x
x
x

Jul.
Aug.
Sep.

66,195
127,696
57,553

10,909
11,415
9,749

162
269
176

21,588
21,694
22,579

690.3
701.8
718.1

x
x
x

x
x
x

Oct.
Nov.
Dec.

118,047
152,963
89,315

10,208
9,493
6,299

165
445
217

21,860
29,340
20,783

704.5
687.3
689.0

x
x
x

x
x
x

2001 Jan.
Feb.
Mar.

23,657
45,952
127,452

6,802
8,864
10,225

109
129
239

22,204
23,934
23,885

717.8
727.3
714.4

x
x
x

x
x
x

Apr.
May
Jun.

65,253
41,041
47,142

6,300
8,189
7,220

284
622
136

23,895
24,170
26,962

734.5
744.0
785.3

x
x
x

x
x
x

Jul.
Aug.
Sep.

51,380
145,636
67,428

8,299
7,372
6,294

167
224
297

29,107
30,520
30,756

823.1
827.6
831.0

x
x
x

x
x
x

Oct.
Nov.
Dec.

62,510
43,057
49,804

6,735
6,705
4,114

161
104
245

30,495
32,802
33,683

814.9
838.3
829.1

x
x
x

x
x
x

2002 Jan.
Feb.
Mar.

85,456
59,479
66,670

4,795
5,722
5,593

291
147
150

33,343
35,509
37,051

814.1
814.8
776.1

x
x
x

x
x
x

Apr.
May
Jun.

64,041
78,728
297,530

5,476
4,314
4,871

174
139
366

38,910
38,327
42,040

828.4
850.4
804.1

x
x
x

x
x
x

Jul.
Aug.
Sep.

54,519
47,417
119,444

5,843
4,494
6,650

195
143
455

46,094
50,643
61,899

809.6
887.1
1,127.1

x
x
x

x
x
x

Oct.
Nov.
Dec.

1,164,426
37,135
68,470

7,405
6,902
4,572

1,662
263
230

59,690
61,025
61,074

1,074.4
1,068.5
1,051.9

1,102.2
1,020.1
974.8

1,062.4
1,056.6
1,104.2

2003 Jan.
Feb.
Mar.

34,124
35,249
26,248

6,004
6,172
5,911

237
195
399

65,253
66,160
64,063

1,110.9
1,126.9
1,094.3

1,056.9
1,003.5
996.3

1,289.1
1,143.1
1,053.5

Apr.
May
Jun.

51,277
94,412
56,934

4,657
5,106
6,063

247
314
128

66,038
68,327
73,078

1,096.2
1,055.5
1,128.0

1,003.4
771.2
850.3

1,022.0
1,028.9
1,045.4

Jul.
Aug.
Sep.

112,680
58,997
122,993

6,219
5,718
5,565

434
380
1,078

75,085
69,771
79,519

1,155.0
1,125.7
1,188.3

824.9
855.3
886.7

1,101.1
1,129.9
1,234.4

Oct.
119,252
6,072
301
74,992
1,205.3
961.7
Nov.
98,060
6,740
232
78,850
1,271.0
1,188.8
Dec.
67,734
4,523
165
79,195
1,280.4
1,247.3
Source: RASDAQ
Note: Data concerning market capitalisation and all RASDAQ indexes refer to the last trading session of the month.

1,273.7
1,335.1
1,454.2

National Bank of Romania

225

Annual
Report
2003

Statistical Section

11. RESERVE MONEY


Period

1999
2000
2001
2002
2003
2000 Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2001 Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2002 Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2003 Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.

226

Vault cash
(ROL bn.)
daily
average
810.9
1,284.6
1,902.6
2,754.3
4,370.1
1,063.5
1,004.1
1,025.8
1,226.0
1,326.3
1,314.6
1,221.8
1,263.7
1,223.9
1,438.2
1,505.1
1,802.1
1,757.8
1,512.4
1,555.3
1,856.8
1,795.2
1,773.8
1,868.4
1,878.7
1,951.0
2,093.5
2,090.6
2,697.5
2,707.8
2,139.0
2,318.0
2,399.0
2,718.3
2,543.4
2,604.6
2,627.7
2,638.4
2,931.7
3,140.2
4,283.6
4,317.4
3,416.0
3,810.4
4,011.0
4,257.5
3,913.1
3,959.4
4,565.7
4,909.9
4,779.4
4,779.5
5,721.7

end of
period
1,274.0
2,322.9
4,320.0
7,194.1
7,197.1
1,446.0
1,134.7
1,152.2
1,674.4
2,169.0
1,326.0
1,793.6
1,435.7
1,398.5
1,920.3
1,485.6
2,322.9
1,804.2
1,631.7
1,787.7
2,451.8
1,949.3
2,060.2
2,365.9
2,028.0
2,227.5
2,556.8
2,258.8
4,320.0
2,752.5
2,613.0
2,749.8
3,041.8
2,876.3
3,080.1
3,483.5
3,099.0
4,076.3
3,627.1
3,660.1
7,194.1
3,498.6
3,587.4
4,899.3
5,061.6
3,986.8
5,483.6
4,783.9
5,170.7
5,635.5
4,661.6
4,706.0
7,197.1

Currency outside
banks
(ROL bn.)
daily average
end of
period
13,693.9
17,371.6
20,074.3
25,741.7
28,288.1
35,635.3
38,243.2
45,577.3
52,946.3
57,978.4
15,835.1
15,711.5
15,686.4
16,151.3
16,212.0
16,069.7
17,468.4
19,357.4
18,839.1
20,180.4
20,743.2
21,461.4
21,682.8
21,860.4
21,835.5
21,363.5
21,780.4
22,765.0
22,720.0
22,508.8
22,498.1
22,808.1
25,590.2
25,741.7
23,589.4
22,978.7
23,039.5
23,752.3
23,777.4
23,774.0
26,815.4
25,810.7
25,945.6
25,457.2
27,316.6
29,645.4
29,618.0
29,327.7
30,258.7
29,829.7
30,943.5
32,645.2
31,964.7
30,835.2
31,139.0
31,080.3
35,049.3
35,635.3
32,212.2
30,021.3
31,227.6
32,411.1
33,088.5
33,415.8
34,454.2
37,682.7
36,824.8
34,996.6
36,955.9
39,614.6
39,910.4
39,105.6
41,146.8
41,256.7
42,088.2
42,334.2
42,872.0
41,324.4
41,828.7
41,688.0
46,308.8
45,577.3
43,770.9
41,542.7
43,480.7
45,772.3
46,405.4
45,867.2
50,273.4
51,574.6
50,827.0
50,213.5
51,867.0
52,534.8
55,061.1
54,460.4
57,461.1
58,502.5
58,433.0
58,142.6
59,329.8
58,009.1
57,414.9
57,261.8
61,031.5
57,978.4

Banks' deposits with


NBR (ROL bn.)
daily
average
9,646.7
21,650.8
27,004.1
32,027.7
35,933.9
18,144.1
18,967.1
20,023.6
21,141.2
21,565.0
21,993.4
22,203.8
22,752.0
22,892.2
23,164.1
23,074.8
23,888.5
25,486.3
25,612.1
26,297.8
27,496.5
28,150.8
28,439.3
26,353.1
27,032.8
27,547.6
26,375.9
27,043.9
28,213.4
30,483.5
30,614.9
32,031.4
29,602.0
31,047.8
31,411.0
32,561.0
33,795.8
32,498.2
35,716.3
35,468.9
29,101.3
34,833.6
34,198.1
35,140.0
35,303.2
33,454.6
34,363.2
33,953.4
38,566.0
35,989.2
36,140.0
43,475.6
35,790.3

end of
period
17,336.4
23,420.4
27,835.7
27,418.3
33,239.6
19,398.6
16,625.6
19,131.4
19,722.9
19,699.1
21,389.3
22,473.8
20,851.6
22,158.7
20,820.8
21,561.1
23,420.4
24,661.7
22,359.9
25,317.5
28,256.0
26,589.8
27,480.7
26,615.1
24,891.1
26,465.5
27,045.2
24,037.1
27,835.7
33,021.0
29,448.7
30,231.3
28,639.2
31,096.1
33,099.7
31,511.8
33,202.3
28,606.5
31,100.5
30,276.6
27,418.3
32,516.0
32,233.4
33,373.8
39,049.8
30,488.8
33,686.4
23,504.1
37,265.4
30,320.4
28,263.9
42,659.5
33,239.6

Reserve money
(ROL bn.)
daily
average
24,151.4
43,009.7
57,194.8
73,025.2
93,250.3
35,042.7
35,657.6
37,261.4
39,835.6
41,730.4
44,051.2
45,108.4
45,851.2
45,896.5
47,322.3
47,078.0
51,280.8
50,833.5
50,164.0
51,630.5
56,168.7
55,891.6
57,529.7
57,839.5
59,170.3
60,442.1
60,434.2
60,273.5
65,960.2
65,403.5
63,981.5
67,437.9
66,455.2
70,590.9
70,910.2
75,076.1
77,570.3
77,224.8
81,520.0
80,437.9
79,693.6
82,921.9
81,094.8
85,355.8
89,587.6
88,539.0
90,143.4
92,973.9
100,592.8
99,332.0
100,249.2
105,670.0
102,543.5

end of
period
35,982.0
51,485.0
67,791.1
80,189.7
98,415.1
36,556.1
33,911.6
36,353.3
40,754.8
42,048.5
44,176.7
46,127.8
43,650.8
46,322.3
45,249.9
45,854.8
51,485.0
49,444.6
47,743.9
50,879.2
56,518.6
53,996.3
59,186.2
58,308.6
56,748.7
61,338.2
60,437.2
57,376.2
67,791.1
65,794.8
64,472.9
66,396.8
69,363.8
68,968.9
75,794.4
74,100.9
77,558.0
75,017.0
76,052.0
75,624.7
80,189.7
77,557.3
81,593.1
84,140.3
95,686.0
84,689.1
91,704.8
82,748.4
100,938.6
94,098.6
90,934.6
104,627.2
98,415.1

Reserve money
multiplier (m1)
average
0.91
0.74
0.80
0.89
0.86
0.76
0.70
0.69
0.69
0.70
0.71
0.73
0.75
0.75
0.76
0.77
0.84
0.81
0.77
0.76
0.76
0.76
0.76
0.81
0.82
0.82
0.84
0.84
0.89
0.87
0.82
0.82
0.86
0.86
0.87
0.87
0.88
0.92
0.89
0.91
1.04
0.98
0.94
0.93
0.95
0.98
0.99
1.02
0.97
1.02
1.02
0.94
1.07

end of
period
0.82
0.90
0.95
1.10
1.15
0.68
0.75
0.71
0.73
0.73
0.73
0.73
0.78
0.77
0.79
0.81
0.90
0.77
0.83
0.77
0.74
0.77
0.78
0.81
0.85
0.83
0.83
0.88
0.95
0.77
0.85
0.84
0.87
0.87
0.85
0.89
0.89
0.95
0.95
0.96
1.10
0.95
0.96
0.95
0.92
1.00
1.00
1.13
0.99
1.08
1.10
0.95
1.15

Reserve money
multiplier (m2)
average
4.40
3.47
3.72
4.11
4.22
3.76
3.66
3.59
3.46
3.39
3.31
3.34
3.39
3.50
3.46
3.49
3.41
3.59
3.65
3.66
3.47
3.56
3.55
3.67
3.74
3.82
3.91
4.00
3.91
4.06
4.12
4.02
4.22
4.08
4.17
4.03
3.99
4.09
3.94
4.10
4.44
4.40
4.46
4.32
4.17
4.28
4.26
4.19
3.97
4.14
4.18
4.02
4.32

end of
period
3.73
3.59
3.99
4.66
4.68
3.54
3.88
3.74
3.42
3.40
3.36
3.31
3.62
3.52
3.63
3.59
3.59
3.64
3.90
3.76
3.51
3.70
3.52
3.71
3.99
3.83
3.92
4.27
3.99
3.95
4.14
4.15
4.12
4.21
3.97
4.10
4.06
4.23
4.27
4.42
4.66
4.59
4.50
4.39
3.96
4.48
4.24
4.72
4.04
4.40
4.66
4.07
4.68

National Bank of Romania

Annual
Report
2003

Statistical Section

12. BROAD MONEY


- end of period Period

Total M2 M1

QUASI-MONEY
Currency outside Demand deposits
Total
banks

Total

1999
2000
2001
2002
2003
2000 Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2001 Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2002 Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
2003 Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.

ROL bn.
134,114.3
185,060.0
270,512.0
373,712.5
460,741.3
129,445.7
131,620.0
136,104.6
139,518.3
143,046.0
148,510.0
152,889.8
158,134.8
163,269.6
164,063.2
164,560.2
185,060.0
180,108.1
186,209.9
191,550.8
198,613.1
199,828.8
208,497.6
216,377.0
226,557.1
235,145.1
236,889.9
244,840.5
270,512.0
259,932.2
267,089.5
275,326.0
286,065.6
290,628.6
300,911.8
303,476.6
314,850.2
317,332.5
324,933.0
334,583.5
373,712.5
355,721.4
367,401.7
369,451.0
378,594.5
379,097.8
388,499.3
390,875.5
407,395.6
414,468.3
423,765.5
425,653.6
460,741.3

ROL bn.
29,668.9
46,331.1
64,308.8
88,304.6
113,259.8
24,808.4
25,471.5
25,990.4
29,691.8
30,638.9
32,268.9
33,765.9
34,150.0
35,685.9
35,642.5
37,023.7
46,331.1
37,965.4
39,512.4
39,107.5
42,069.8
41,750.7
46,000.5
46,944.8
48,171.6
51,072.8
50,032.3
50,331.0
64,308.8
50,757.0
54,482.0
55,881.3
60,372.6
59,795.7
64,366.4
65,733.3
69,382.6
71,435.2
72,319.2
72,821.7
88,304.6
73,801.9
78,289.1
79,940.6
87,820.2
85,019.3
92,145.1
93,725.2
99,969.6
101,513.9
100,231.1
99,412.5
113,259.8

National Bank of Romania

%
22.1
25.0
23.8
23.6
24.6
19.2
19.4
19.1
21.3
21.4
21.7
22.1
21.6
21.9
21.7
22.5
25.0
21.1
21.2
20.4
21.2
20.9
22.1
21.7
21.3
21.7
21.1
20.6
23.8
19.5
20.4
20.3
21.1
20.6
21.4
21.7
22.0
22.5
22.3
21.8
23.6
20.7
21.3
21.6
23.2
22.4
23.7
24.0
24.5
24.5
23.7
23.4
24.6

ROL bn.
17,371.6
25,741.7
35,635.5
45,578.3
57,978.4
15,711.5
16,151.3
16,069.7
19,357.4
20,180.4
21,461.4
21,860.4
21,363.5
22,765.0
22,508.8
22,808.1
25,741.7
22,978.7
23,752.3
23,774.0
25,810.7
25,457.2
29,645.4
29,327.7
29,829.7
32,645.2
30,835.2
31,080.3
35,635.5
30,021.3
32,411.1
33,415.8
37,682.7
34,996.6
39,614.6
39,105.6
41,256.7
42,334.2
41,324.4
41,688.0
45,578.3
41,543.0
45,773.0
45,867.6
51,574.9
50,213.5
52,534.8
54,460.5
58,502.5
58,142.6
58,009.1
57,261.8
57,978.4

%
13.0
13.9
13.2
12.2
12.6
12.1
12.3
11.8
13.9
14.1
14.5
14.3
13.5
13.9
13.7
13.9
13.9
12.8
12.8
12.4
13.0
12.7
14.2
13.6
13.2
13.9
13.0
12.7
13.2
11.5
12.1
12.1
13.2
12.0
13.2
12.9
13.1
13.3
12.7
12.5
12.2
11.7
12.5
12.4
13.6
13.2
13.5
13.9
14.4
14.0
13.7
13.5
12.6

ROL bn.
12,297.3
20,589.4
28,673.3
42,726.3
55,281.4
9,096.9
9,320.2
9,920.6
10,334.4
10,458.5
10,807.6
11,905.5
12,786.5
12,920.9
13,133.7
14,215.6
20,589.4
14,986.8
15,760.1
15,333.6
16,259.1
16,293.4
16,355.1
17,617.2
18,341.9
18,427.6
19,197.1
19,250.7
28,673.3
20,735.7
22,070.9
22,465.5
22,689.9
24,799.1
24,751.7
26,627.7
28,125.9
29,101.0
30,994.8
31,133.8
42,726.3
32,258.9
32,516.2
34,073.0
36,245.3
34,805.8
39,610.3
39,264.7
41,467.1
43,371.3
42,221.9
42,150.7
55,281.4

%
9.2
11.1
10.6
11.4
12.0
7.0
7.1
7.3
7.4
7.3
7.3
7.8
8.1
7.9
8.0
8.6
11.1
8.3
8.5
8.0
8.2
8.2
7.8
8.1
8.1
7.8
8.1
7.9
10.6
8.0
8.3
8.2
7.9
8.5
8.2
8.8
8.9
9.2
9.5
9.3
11.4
9.1
8.9
9.2
9.6
9.2
10.2
10.0
10.2
10.5
10.0
9.9
12.0

ROL bn.
104,445.4
138,728.9
206,203.3
285,407.8
347,481.4
104,637.3
106,148.5
110,114.2
109,826.5
112,407.2
116,241.0
119,123.9
123,984.7
127,583.7
128,420.7
127,536.5
138,728.9
142,142.6
146,697.5
152,443.3
156,543.3
158,078.2
162,497.1
169,432.2
178,385.5
184,072.3
186,857.6
194,509.5
206,203.3
209,175.2
212,607.4
219,444.7
225,693.0
230,832.9
236,545.4
237,743.3
245,467.6
245,897.3
252,613.8
261,761.8
285,407.8
281,919.5
289,112.5
289,510.5
290,774.4
294,078.5
296,354.2
297,150.4
307,426.0
312,954.4
323,534.5
326,241.0
347,481.5

%
77.9
75.0
76.2
76.4
75.4
80.8
80.6
80.9
78.7
78.6
78.3
77.9
78.4
78.1
78.3
77.5
75.0
78.9
78.8
79.6
78.8
79.1
77.9
78.3
78.7
78.3
78.9
79.4
76.2
80.5
79.6
79.7
78.9
79.4
78.6
78.3
78.0
77.5
77.7
78.2
76.4
79.3
78.7
78.4
76.8
77.6
76.3
76.0
75.5
75.5
76.3
76.6
75.4

Household savings

ROL bn.
39,246.4
44,548.7
63,706.5
88,894.2
99,584.8
40,734.8
41,922.1
42,988.3
43,038.8
42,599.2
43,252.9
43,624.0
43,090.1
42,328.5
41,095.0
40,827.2
44,548.7
45,828.8
46,923.1
48,381.6
49,755.3
50,697.3
52,348.2
53,138.2
54,030.3
55,327.3
56,760.9
58,669.7
63,706.5
65,542.1
67,766.0
70,377.8
72,442.8
73,852.2
75,446.7
77,508.0
79,336.6
79,945.7
82,290.1
83,837.2
88,894.2
90,508.8
92,753.0
93,097.6
94,126.3
93,632.6
93,925.9
93,961.1
94,990.1
94,845.3
95,854.7
97,159.5
99,584.8

%
29.3
24.1
23.6
23.8
21.6
31.5
31.9
31.6
30.8
29.8
29.1
28.5
27.2
25.9
25.0
24.8
24.1
25.4
25.2
25.3
25.1
25.4
25.1
24.6
23.8
23.5
24.0
24.0
23.6
25.2
25.4
25.6
25.3
25.4
25.1
25.5
25.2
25.2
25.3
25.1
23.8
25.4
25.2
25.2
24.9
24.7
24.2
24.0
23.3
22.9
22.6
22.8
21.6

Time and
Residents' deposits
restricted
in convertible
deposits (ROL)
currencies
ROL bn.
14,733.9
19,323.9
26,712.6
49,701.9
76,738.0
14,100.8
15,133.6
15,905.8
15,220.4
14,792.6
15,318.1
15,233.1
16,110.1
17,039.5
16,095.1
16,345.3
19,323.9
17,778.6
19,372.2
20,802.9
19,582.3
19,475.7
20,218.1
20,355.8
21,694.7
21,947.6
22,590.8
23,942.9
26,712.6
26,919.1
29,089.4
31,487.0
34,318.6
33,939.0
36,534.7
37,336.3
39,742.4
38,077.3
40,363.3
42,749.7
49,701.9
46,235.7
48,326.1
50,096.4
50,395.0
50,158.5
49,737.5
50,619.5
55,271.6
58,489.3
60,298.7
60,909.5
76,738.0

%
11.0
10.4
9.9
13.3
16.7
10.9
11.5
11.7
10.9
10.3
10.3
10.0
10.2
10.4
9.8
9.9
10.4
9.9
10.4
10.9
9.9
9.7
9.7
9.4
9.6
9.3
9.5
9.8
9.9
10.4
10.9
11.4
12.0
11.7
12.1
12.3
12.6
12.0
12.4
12.8
13.3
13.0
13.2
13.6
13.3
13.2
12.8
13.0
13.6
14.1
14.2
14.3
16.7

ROL bn.
50,481.5
74,856.3
115,784.1
146,811.7
171,158.6
49,801.7
49,092.9
51,220.2
51,567.3
55,015.4
57,670.0
60,266.8
64,784.6
68,215.7
71,230.7
70,364.0
74,856.3
78,535.3
80,402.2
83,258.8
87,205.7
87,905.2
89,930.8
95,938.2
102,660.5
106,797.4
107,506.0
111,896.8
115,784.1
116,714.0
115,752.0
117,579.9
118,931.6
123,041.7
124,564.1
122,899.0
126,388.6
127,874.2
129,960.5
135,174.9
146,811.7
145,175.0
148,033.4
146,316.5
146,253.0
150,287.5
152,690.8
152,569.7
157,164.3
159,619.9
167,381.1
168,172.0
171,158.6

%
37.6
40.4
42.8
39.3
37.1
38.5
37.3
37.6
37.0
38.5
38.8
39.4
41.0
41.8
43.4
42.8
40.4
43.6
43.2
43.5
43.9
44.0
43.1
44.3
45.3
45.4
45.4
45.7
42.8
44.9
43.3
42.7
41.6
42.3
41.4
40.5
40.1
40.3
40.0
40.4
39.3
40.8
40.3
39.6
38.6
39.6
39.3
39.0
38.6
38.5
39.5
39.5
37.1

227

Annual
Report
2003

Statistical Section

13. DOMESTIC CREDIT


- ROL millions; end of period Period

TOTAL

NON-GOVERNMENT CREDIT
ROL credits
Total
Total
Short-term credits
Total
Economic
agents with
majority
state-owned
capital
57,719,485 24,444,938 18,781,531 4,247,638
75,007,107 30,410,835 25,193,508 3,064,883
118,254,451 47,533,320 39,904,461 3,774,791
178,727,969 66,728,798 50,424,056 6,163,684
302,879,375 135,040,418 72,964,441 7,527,468

1999
2000
2001
2002
2003

101,340,362.3
112,885,527.8
143,244,730.8
200,221,167.1
300,942,906.0

2000 Jan.
Feb.
Mar.

102,863,199.8
104,357,962.5
105,710,336.6

59,818,261
61,804,036
62,556,405

25,640,754 20,066,262
26,201,674 20,663,210
25,966,224 20,426,386

4,139,522 15,047,678
4,141,035 15,609,480
3,960,195 15,608,188

547,205
541,098
563,090

331,857
371,597
294,913

Apr.
May
Jun.

108,544,095.4
110,389,985.7
107,528,623.7

64,490,445
66,678,284
67,205,782

26,613,119 21,136,453
26,707,047 21,216,478
26,558,539 21,117,501

3,670,600 16,558,336
3,655,259 16,629,579
3,378,703 16,846,662

570,449
569,696
599,923

337,068
361,944
292,213

Jul.
Aug.
Sep.

108,440,388.0
109,037,018.9
109,886,196.8

67,570,049
69,907,872
73,162,981

27,598,482 22,117,454
28,012,355 22,463,068
30,111,623 24,470,635

3,461,931 17,669,446
3,363,430 18,122,904
3,226,703 19,960,252

648,009
703,198
770,390

338,067
273,536
513,290

Oct.
Nov.
Dec.

106,673,641.5
102,546,968.6
112,885,527.8

74,275,178
70,783,117
75,007,107

31,271,544 26,344,536
30,445,392 25,447,959
30,410,835 25,193,508

3,235,641 21,701,882
3,087,806 20,915,513
3,064,883 20,582,407

895,970
989,080
1,079,568

511,043
455,561
466,650

2001 Jan.
Feb.
Mar.

111,134,740.2
115,133,473.1
116,885,229.8

78,794,010
82,010,760
84,427,654

32,169,717 26,908,927
32,974,856 27,685,840
33,398,632 27,944,472

3,297,176 22,038,909
2,956,964 23,115,579
2,817,282 23,695,187

1,111,098
1,206,570
1,311,042

461,745
406,726
120,961

Apr.
May
Jun.

122,867,123.1
123,443,451.9
115,203,790.1

88,397,980
90,381,033
92,884,785

35,116,241 29,574,271
36,197,001 30,466,382
37,236,219 31,465,365

3,250,790 24,757,874
3,537,408 25,191,901
3,852,031 25,810,081

1,426,268
1,631,650
1,622,987

139,338
105,423
180,266

Jul.
Aug.
Sep.

120,005,075.6
122,833,362.7
129,349,390.8

97,206,053
99,369,058
103,230,142

39,072,200 33,080,627
39,227,712 32,950,028
41,898,485 35,353,400

4,487,898 26,608,353
4,255,260 26,453,879
4,243,643 28,693,953

1,816,447
2,031,481
2,193,594

167,929
209,408
222,210

Oct.
Nov.
Dec.

129,198,142.0
131,513,768.2
143,244,730.8

107,390,509
111,190,299
118,254,451

43,581,828 36,948,498
45,007,849 37,997,552
47,533,320 39,904,461

4,510,432 29,675,278
4,210,464 30,846,666
3,774,791 32,939,917

2,549,398
2,716,375
2,848,567

213,390
224,047
341,186

2002 Jan.
Feb.
Mar.

145,241,565.5
148,750,580.6
155,233,989.3

121,591,281
124,163,563
130,236,652

48,758,821 40,998,682
49,897,663 42,033,640
51,609,789 43,586,141

3,744,874 34,150,079
3,777,532 35,067,687
3,729,719 36,544,074

2,838,530
2,898,039
3,072,673

265,198
290,381
239,676

Apr.
May
Jun.

166,446,432.4
143,045,443.8
164,420,869.7

140,430,653
143,072,372
147,266,724

53,976,146 45,541,224
51,203,515 42,555,121
52,780,790 43,653,236

4,455,014 37,643,551
4,160,207 34,597,991
4,130,968 34,989,789

3,254,400
3,562,618
4,155,866

188,259
234,305
376,612

Jul.
Aug.
Sep.

161,825,031.6
165,289,136.3
170,243,343.8

145,975,042
150,833,775
157,002,679

53,233,089 43,310,269
54,617,143 44,119,126
58,079,313 46,610,899

4,120,388 34,663,649
4,180,784 35,098,439
4,168,077 37,262,198

4,229,345
4,548,144
4,955,815

296,887
291,760
224,808

Oct.
Nov.
Dec.

170,551,219.9
181,090,145.3
200,221,167.1

164,935,211
171,493,585
178,727,969

62,206,653 49,205,870
66,055,394 51,664,841
66,728,798 50,424,056

4,802,160 38,726,569
5,369,489 40,619,907
6,163,684 38,212,702

5,345,856
5,419,350
5,602,580

331,285
256,095
445,089

2003 Jan.
Feb.
Mar.

200,572,020.5
207,926,988.7
215,323,894.2

183,747,526
188,484,686
196,819,146

70,980,035 53,808,223
73,213,618 54,485,362
77,108,949 56,684,976

4,976,349 42,858,448
6,591,983 42,067,580
6,950,613 43,599,224

5,547,595
5,387,838
5,634,932

425,831
437,962
500,207

Apr.
May
Jun.

225,900,462.6
239,292,006.7
246,396,564.9

205,602,909
216,769,656
223,525,161

81,246,724 58,667,593
88,830,521 61,959,781
95,117,789 64,534,857

7,281,496 45,278,150
7,467,776 47,212,254
8,344,855 48,499,491

5,621,460
6,818,174
7,070,165

486,487
461,577
620,345

Jul.
Aug.
Sep.

220,307,681.3
232,323,223.1
242,183,819.3

230,683,986 99,715,943 64,131,063


246,429,771 106,127,500 64,774,959
260,309,839 114,040,884 69,050,074

8,116,041 47,360,543
7,706,468 48,194,113
7,554,763 50,692,627

8,028,508
8,237,805
9,913,907

625,970
636,572
888,778

Oct.
253,837,009.9
274,894,236 120,555,603 71,664,978
Nov.
268,630,653.2
287,226,148 127,796,559 73,585,736
Dec.
300,942,906.0
302,879,375 135,040,418 72,964,441
1) Insurance companies included.

228

Economic Households Other 1)


agents with
majority
private
capital
13,622,662
580,743
330,489
20,582,407 1,079,568
466,650
32,939,917 2,848,567
341,186
38,212,702 5,602,580
445,089
54,997,152 9,379,007 1,060,814

7,983,036 52,116,266 10,628,794


936,883
7,292,615 56,034,782 9,299,399
958,940
7,527,468 54,997,152 9,379,007 1,060,814

National Bank of Romania

Annual
Report
2003

Statistical Section

13. DOMESTIC CREDIT


(continued)
Period
NON-GOVERNMENT CREDIT (continued)
ROL credits (continued)
Medium-term credits
Total
Economic Economic Households
agents with agents with
majority
majority
state-owned private
capital
capital
1999
3,997,794
801,701 2,122,998
970,000
2000
4,110,294
721,540 1,902,193
1,414,091
2001
6,316,918
549,004 2,870,872
2,525,511
2002
14,039,823
1,590,831 4,571,474
7,538,702
2003
56,532,560
5,258,051 9,270,234
40,531,976

- ROL millions; end of period -

Other 1)

103,094
72,470
371,531
338,816
1,472,299

Long-term credits
Total
Economic
agents with
majority
state-owned
capital
1,665,613
7,757
1,107,033
401
1,311,941

2,264,920

5,543,417 1,152,741

Economic Households
agents with
majority
private
capital
158,556
1,048,530
80,844
1,022,192
68,745
1,241,647
86,068
2,043,172
959,014
3,148,406

Other 1)

450,771
3,597
1,549
135,680
283,256

2000 Jan.
Feb.
Mar.

3,947,820
3,925,969
3,943,292

816,213
820,399
846,309

2,077,814
2,077,599
2,084,019

947,331
920,713
902,750

106,463
107,257
110,213

1,626,672
1,612,495
1,596,546

7,602
6,425
6,341

135,855
136,250
129,700

1,032,461
1,019,105
1,009,817

450,755
450,715
450,688

Apr.
May
Jun.

3,890,545
3,924,226
3,845,405

810,669
796,207
740,414

2,055,895
2,089,295
2,047,141

917,245
935,605
958,670

106,736
103,119
99,180

1,586,121
1,566,343
1,595,633

6,320
6,298
3,770

128,296
122,047
127,071

1,000,899
987,409
980,279

450,606
450,589
484,513

Jul.
Aug.
Sep.

3,891,497
3,986,051
4,066,458

719,357
740,119
720,242

2,075,787
2,100,026
2,117,240

988,866
1,046,904
1,116,315

107,487
99,003
112,660

1,589,532
1,563,235
1,574,530

3,749
3,719
3,698

124,246
126,072
127,814

977,105
982,983
992,493

484,433
450,461
450,525

Oct.
Nov.
Dec.

3,841,016
3,904,874
4,110,294

711,706
739,523
721,540

1,863,431
1,814,771
1,902,193

1,190,751
1,273,660
1,414,091

75,128
76,920
72,470

1,085,992
1,092,559
1,107,033

460
427
401

76,654
76,666
80,844

1,006,688
1,012,576
1,022,192

2,189
2,890
3,597

2001 Jan.
Feb.
Mar.

4,162,830
4,187,389
4,338,175

692,457
682,639
666,492

1,940,778
1,946,366
1,823,920

1,461,173
1,482,827
1,534,544

68,422
75,557
313,219

1,097,959
1,101,627
1,115,986

380
358
339

83,204
83,843
91,653

1,011,620
1,014,857
1,021,999

2,755
2,570
1,995

Apr.
May
Jun.

4,419,607
4,590,894
4,604,449

650,146
660,965
644,679

1,847,437
1,952,344
1,925,635

1,573,345
1,627,403
1,675,553

348,679
350,182
358,582

1,122,364
1,139,725
1,166,405

339
339
324

93,612
98,323
105,736

1,026,509
1,039,274
1,058,565

1,904
1,790
1,780

Jul.
Aug.
Sep.

4,800,557
5,053,975
5,296,234

657,381
722,027
733,589

2,005,994
2,086,717
2,199,997

1,770,169
1,885,553
2,000,702

367,012
359,678
361,946

1,191,016
1,223,710
1,248,851

324

108,589
112,564
110,868

1,080,333
1,109,177
1,136,314

1,770
1,969
1,669

Oct.
Nov.
Dec.

5,372,155
5,717,170
6,316,918

463,019
498,680
549,004

2,396,576
2,533,233
2,870,872

2,146,532
2,318,118
2,525,511

366,027
367,140
371,531

1,261,174
1,293,127
1,311,941

83,697
81,202
68,745

1,175,824
1,210,142
1,241,647

1,653
1,782
1,549

2002 Jan.
Feb.
Mar.

6,438,484
6,506,176
6,609,902

506,419
481,249
752,392

2,946,130
2,977,886
3,045,825

2,617,009
2,686,794
2,747,042

368,927
360,247
64,643

1,321,655
1,357,847
1,413,745

64,977
65,402
71,623

1,255,256
1,291,032
1,340,170

1,422
1,414
1,952

Apr.
May
Jun.

6,951,822
7,105,843
7,518,846

756,300
743,132
727,017

3,088,804
3,086,258
3,393,774

2,974,069
3,140,590
3,291,324

132,649
135,863
106,730

1,483,101
1,542,552
1,608,709

62,230
65,303
66,998

1,418,942
1,475,375
1,539,792

1,928
1,874
1,918

Jul.
Aug.
Sep.

8,240,182
8,741,303
9,533,517

711,976
766,618
1,006,106

3,827,436
3,869,964
3,916,540

3,578,237
3,937,015
4,479,371

122,533
167,707
131,500

1,682,638
1,756,715
1,934,898

67,567
68,449
70,743

1,613,202
1,686,270
1,786,333

1,869
1,995
77,822

Oct.
Nov.
Dec.

10,962,714
12,271,087
14,039,823

1,327,463
1,269,478
1,590,831

4,106,129
4,464,032
4,571,474

5,326,904
6,275,715
7,538,702

202,219
261,862
338,816

2,038,068
2,119,466
2,264,920

75,709
77,732
86,068

1,888,691
1,967,416
2,043,172

73,668
74,318
135,680

2003 Jan.
Feb.
Mar.

14,954,513
16,483,425
18,104,126

1,596,883
1,609,276
1,454,147

4,722,097
4,848,878
5,021,463

8,278,463
9,642,089
11,197,576

357,070
383,182
430,940

2,217,298
2,244,831
2,319,846

6,220

88,109
100,083
101,966

2,036,447
2,053,818
2,100,513

92,741
90,930
111,147

Apr.
May
Jun.

20,183,965
24,323,443
27,764,734

1,110,614
1,139,010
1,337,408

5,359,455
6,030,913
6,518,999

12,949,462
16,333,971
19,174,507

764,433
819,549
733,820

2,395,166
2,547,297
2,818,198

6,219
6,233
6,252

104,559
92,059
187,742

2,217,664
2,392,513
2,591,594

66,723
56,491
32,610

Jul.
Aug.
Sep.

32,582,850
37,862,656
41,186,588

1,921,398
3,311,477
3,697,535

6,938,123
7,266,280
7,801,763

22,944,007
26,492,978
28,575,000

779,322
791,921
1,112,290

3,002,030
3,489,885
3,804,222

6,849
351,296
512,949

226,492
240,798
279,500

2,735,730
2,812,689
2,923,902

32,959
85,102
87,870

Oct.
44,734,968
3,671,522
Nov. 49,680,138
4,593,003
Dec. 56,532,560
5,258,051
1) Insurance companies included.

8,216,757
8,188,717
9,270,234

31,778,160
35,746,243
40,531,976

1,068,529
1,152,175
1,472,299

4,155,656
4,530,685
5,543,417

512,949
673,349
1,152,741

514,392
646,939
959,014

3,021,167
3,092,061
3,148,406

107,148
118,335
283,256

National Bank of Romania

229

Annual
Report
2003

Statistical Section

13. DOMESTIC CREDIT


(continued)
Period
NON-GOVERNMENT CREDIT (continued)
Convertible currency (domestic credits)
Total
Short-term credits
Medium-term credits
Total
Economic Economic
Households Other 1) Total
Economic
agents with agents with
agents with
majority
majority
majority
state-owned private
state-owned
capital
capital
capital
1999
33,274,548
19,433,275
2,595,167 16,388,164
76,416
373,529
9,397,027 1,000,176
2000
44,596,272
28,620,776
4,945,785 22,215,980
69,987 1,389,024 10,682,997 1,493,805
2001
70,721,131
43,962,561
8,601,058 33,610,054
222,883 1,528,566 18,368,835 2,320,391
2002
111,999,171
68,267,161
8,851,054 55,682,181
676,709 3,057,217 32,547,307 5,844,738
2003
167,838,957
77,025,602
5,375,853 66,269,272
339,673 5,040,805 58,236,265 6,580,694

- ROL millions; end of period -

Economic
Households Other 1)
agents with
majority
private
capital
7,888,456
214,665
293,730
8,313,303
587,688
288,201
14,449,066
656,761
942,617
22,614,092 1,727,249 2,361,228
37,683,728 6,791,315 7,180,528

2000 Jan.
Feb.
Mar.

34,177,507
35,602,362
36,590,181

20,227,715
21,230,726
22,002,861

3,389,809
3,861,883
3,831,885

16,088,057
16,900,493
17,741,890

106,835
106,757
71,540

643,013
361,594
357,546

9,463,919
9,759,151
9,815,887

981,714
969,184
987,612

7,945,279
8,228,877
8,196,898

230,613
254,159
294,026

306,313
306,932
337,351

Apr.
May
Jun.

37,877,326
39,971,237
40,647,244

22,994,887
24,650,145
24,883,608

4,140,484
4,750,802
4,402,231

18,413,092
19,404,167
19,914,918

72,170
99,037
111,817

369,141
396,139
454,642

10,159,244
10,346,153
10,466,509

1,012,946
932,485
1,027,051

8,443,172
8,791,951
8,807,126

359,914
414,592
460,868

343,212
207,126
171,465

Jul.
Aug.
Sep.

39,971,567
41,895,517
43,051,357

23,523,678
24,584,766
25,275,838

3,341,656
3,431,839
4,010,493

19,564,311
20,558,864
20,674,754

67,902
77,796
79,828

549,809
516,268
510,764

11,181,544
11,891,756
11,950,768

1,261,354
1,284,620
1,292,006

9,299,397
9,921,530
9,912,740

485,607
522,060
574,000

135,186
163,546
172,022

Oct.
Nov.
Dec.

43,003,635
40,337,725
44,596,272

26,550,283
24,266,050
28,620,776

4,280,130
4,555,093
4,945,785

21,687,359
18,722,845
22,215,980

94,771
488,023
81,623
906,489
69,987 1,389,024

11,200,215
11,157,629
10,682,997

1,412,251
1,414,971
1,493,805

8,918,059
8,831,243
8,313,303

590,420
584,687
587,688

279,485
326,728
288,201

2001 Jan.
Feb.
Mar.

46,624,293
49,035,904
51,029,022

30,500,228
32,808,598
34,287,255

7,417,272
7,760,851
7,374,189

21,549,821
23,485,685
25,569,767

73,517 1,459,617
87,664 1,474,399
89,045 1,254,254

10,714,619
10,551,774
11,098,353

1,334,017
1,371,733
1,280,130

8,540,083
8,362,339
8,864,212

572,298
552,987
550,373

268,221
264,714
403,638

Apr.
May
Jun.

53,281,738
54,184,032
55,648,566

35,356,500
35,798,534
36,842,200

6,834,754
6,479,606
6,389,801

27,114,031
27,226,756
28,599,355

78,318 1,329,396
109,349 1,982,824
99,068 1,753,976

12,074,200
12,283,458
12,521,456

1,821,550
1,587,976
1,504,485

9,150,242
9,696,918
9,976,864

565,107
562,091
559,069

537,300
436,473
481,038

Jul.
Aug.
Sep.

58,133,854
60,141,346
61,331,656

38,180,623
39,461,181
39,771,932

6,714,699
6,580,798
6,647,712

29,583,257
30,962,751
31,331,646

116,617 1,766,049
138,578 1,779,054
157,532 1,635,042

13,459,874
14,069,109
13,997,717

1,498,701
1,463,189
1,514,436

10,839,476
11,410,812
11,071,284

555,097
566,412
588,666

566,600
628,695
823,330

Oct.
Nov.
Dec.

63,808,681
66,182,450
70,721,131

41,661,418
42,321,334
43,962,561

6,338,541
5,953,688
8,601,058

33,530,996
34,645,011
33,610,054

199,704 1,592,178
205,513 1,517,122
222,883 1,528,566

14,503,297
15,754,159
18,368,835

1,646,185
1,620,236
2,320,391

11,348,813
12,547,587
14,449,066

640,435
657,372
656,761

867,863
928,965
942,617

2002 Jan.
Feb.
Mar.

72,832,460
74,265,900
78,626,863

45,106,791
45,225,387
48,256,922

8,431,902
8,584,442
8,994,680

34,969,000
35,067,560
37,340,741

248,004 1,457,885
277,681 1,295,704
297,122 1,624,379

19,248,200
20,442,518
21,430,743

2,875,496
3,148,304
3,352,861

14,867,466
15,738,273
16,522,623

691,059
733,588
794,312

814,180
822,353
760,947

Apr.
May
Jun.

86,454,506
91,868,856
94,485,933

52,251,317
55,979,138
57,503,268

9,446,255
9,501,307
9,693,108

40,625,700
44,423,015
45,659,593

290,176 1,889,187
265,868 1,788,948
275,840 1,874,727

25,842,690
26,891,902
27,606,718

4,232,146
4,101,418
4,515,899

20,055,301
21,138,201
21,232,537

867,467
937,581
1,049,781

687,776
714,702
808,501

Jul.
Aug.
Sep.

92,741,953
96,216,632
98,923,366

54,960,167
56,559,759
63,185,281

9,055,812
8,716,195
9,703,867

43,559,910
45,565,403
51,399,942

351,997 1,992,448
292,124 1,986,037
344,435 1,737,037

28,445,422
30,102,473
26,136,328

4,547,152
4,877,507
3,973,817

21,700,696
23,135,205
20,074,044

1,474,298
1,216,298
1,370,408

723,276
873,464
718,059

Oct.
Nov.
Dec.

102,728,558
105,438,191
111,999,171

65,164,206
65,096,259
68,267,161

9,710,390
8,732,988
8,851,054

52,457,713
53,387,422
55,682,181

622,108 2,373,995
456,027 2,519,821
676,709 3,057,217

27,287,277
29,889,745
32,547,307

4,436,034
5,672,257
5,844,738

19,181,426
20,608,666
22,614,092

1,767,269 1,902,547
1,637,628 1,971,194
1,727,249 2,361,228

2003 Jan.
Feb.
Mar.

112,767,491
115,271,068
119,710,197

67,598,728
68,961,232
69,835,773

7,409,389
7,203,605
5,820,348

56,427,462
58,163,210
59,540,647

652,321 3,109,556
674,787 2,919,631
677,137 3,797,642

33,774,248
34,531,090
36,140,894

5,496,255
6,537,955
6,061,312

23,895,658
23,505,002
25,184,254

1,733,664 2,648,670
1,786,686 2,701,446
1,926,128 2,969,200

Apr.
May
Jun.

124,356,185
127,939,135
128,407,372

72,111,789
72,621,959
69,243,495

6,453,499
6,328,498
6,174,124

60,620,945
60,044,599
58,721,948

793,762 4,243,583
779,110 5,469,752
853,896 3,493,527

36,345,971
37,891,964
40,021,517

6,077,243
6,257,099
5,978,812

25,052,163
25,179,548
27,521,370

2,170,370 3,046,195
2,386,936 4,068,382
2,988,250 3,533,084

Jul.
Aug.
Sep.

130,968,043
140,302,271
146,268,955

68,746,316
71,963,683
74,666,206

5,112,022
5,556,311
4,967,044

58,063,435
61,247,126
64,197,711

2,073,548 3,497,311
1,190,988 3,969,258
1,169,678 4,331,773

39,805,067
43,432,906
47,107,536

5,937,914
6,291,841
6,462,917

26,439,253
29,127,829
31,419,567

3,423,291 4,004,608
3,698,711 4,314,525
3,866,135 5,358,917

Oct.
154,338,633
77,671,646
Nov.
159,429,589
75,726,157
Dec.
167,838,957
77,025,602
1) Insurance companies included.

5,745,580
5,923,037
5,375,853

66,172,066
64,796,365
66,269,272

1,284,013 4,469,986
751,144 4,255,611
339,673 5,040,805

50,000,480
54,837,595
58,236,265

7,133,457
5,948,759
6,580,694

32,616,447
36,535,571
37,683,728

4,815,938 5,434,639
6,196,923 6,156,341
6,791,315 7,180,528

230

National Bank of Romania

Annual
Report
2003

Statistical Section

13. DOMESTIC CREDIT


(continued)
- ROL millions; end of period Period
NON-GOVERNMENT CREDIT (continued)
GOVERNMENT CREDIT, NET
Convertible currency (domestic credits)
of which:
Total
Other
Long-term credits
Treasury
Other
Forex bonds General
governTotal
Economic Economic Households
certificates credits to
Account of
Other 1)
ment
agents with agents with
governState
securities
majority
ment
majority
Treasury
state-owned private
capital
capital
1999
4,444,245
516,466 3,859,829
43,686
24,265
2,846,741 21,087,847
43,620,877 15,928,235 1,060,000 14,021,955
2000
5,292,500
627,620 4,529,154
86,108
49,617
186,847
2,757,719
1,015,642 25,907,889
37,878,421 19,041,836
2001
8,389,735 1,387,753 6,303,062
494,629
204,291
317,927 11,757,921
4,313,854 12,970,102
24,990,279 21,363,034
2002
11,184,704 1,020,578 5,083,145
3,309,414 1,771,566
6,841,541 8,651,893
21,493,198 24,490,360 1,520,145 11,479,800
2003
32,577,090 3,464,904 10,247,530 14,821,643 4,043,013
8,395,769
6,410,354 8,223,936
1,936,469 7,429,271 4,637,412
2000 Jan.
Feb.
Mar.

4,485,873
4,612,484
4,771,432

536,917
564,178
550,700

3,881,322
3,976,101
4,152,523

44,594
48,285
44,151

23,040
23,920
24,059

43,044,938 18,701,703
42,553,926 19,480,996
43,153,932 21,762,434

11,370,249
11,633,111
9,995,553

1,915,475 21,087,847
2,486,102 19,622,916
2,353,247 19,623,306

Apr.
May
Jun.

4,723,195
4,974,939
5,297,126

565,886
600,896
618,323

4,074,470
4,278,092
4,573,882

59,129
71,052
73,884

23,711
24,898
31,037

44,053,651 23,721,646
43,711,702 26,730,866
40,322,841 26,537,955

9,073,638
7,614,127
8,266,067

2,174,565 19,623,306
4,152,495 19,623,306
2,496,807 19,623,306

Jul.
Aug.
Sep.

5,266,344
5,418,995
5,824,751

633,077
630,580
680,956

4,525,452
4,676,530
5,026,469

75,065
77,604
81,338

32,751
34,281
35,987

40,870,339 26,174,627
39,129,147 21,836,518
36,723,216 21,448,323

45,411
51,458
53,288

8,270,362
8,289,464
6,745,972

1,950,618 19,110,056
2,298,761 17,627,219
2,291,322 17,627,219

Oct.
Nov.
Dec.

5,253,137
4,914,045
5,292,500

594,683
620,743
627,620

4,559,066
4,180,454
4,529,154

68,095
79,887
86,108

31,293
32,961
49,617

32,398,463 17,373,058
31,763,851 19,273,343
37,878,421 19,041,836

1,624,574
52,160
186,847

2,539,805
2,565,802
2,757,719

3,719,887 21,963,889
5,306,212 25,907,889
1,015,642 25,907,889

2001 Jan.
Feb.
Mar.

5,409,446
5,675,532
5,643,414

669,011
722,422
765,291

4,599,085
4,734,903
4,636,624

110,077
111,483
120,161

31,274
106,724
121,339

32,340,731 17,150,594
33,122,713 18,228,842
32,457,576 17,459,339

403,093
383,801
347,119

2,852,605
2,912,287
4,555,366

3,107,020 26,637,889
3,436,939 25,172,959
2,053,873 25,157,817

Apr.
May
Jun.

5,851,039
6,102,040
6,284,910

849,182
1,032,822
1,094,058

4,731,055
4,784,615
4,857,785

135,157
151,298
166,043

135,646
133,305
167,025

34,469,144 18,905,307
33,062,419 18,423,764
22,319,005 17,200,340

327,496
302,927
414,724

4,076,212
7,850,361
8,052,924

4,739,807 25,157,817
4,208,593 25,157,817
2,336,144 25,157,817

Jul.
Aug.
Sep.

6,493,357
6,611,057
7,562,007

1,218,836
1,313,387
1,361,929

4,909,555
4,913,173
5,751,880

197,074
215,109
218,242

167,892
169,387
229,956

22,799,022 15,879,766
23,464,304 12,941,213
26,119,249 13,975,101

447,273
475,548
431,709

7,191,685
6,777,759
7,287,840

6,719,954 24,644,566
3,891,665 23,179,636
4,559,781 20,803,343

Oct.
Nov.
Dec.

7,643,966
8,106,956
8,389,735

1,412,767
1,501,938
1,387,753

5,716,389
6,017,075
6,303,062

284,802
378,362
494,629

230,008
209,582
204,291

21,807,633 15,829,151
20,323,469 16,552,526
24,990,279 21,363,034

892,939
157,264
317,927

11,396,471
10,816,226
11,757,921

7,045,151 19,503,359
7,425,487 19,503,359
4,313,854 12,970,102

2002 Jan.
Feb.
Mar.

8,477,469
8,597,995
8,939,199

1,380,489
1,411,230
1,430,288

6,332,378
6,281,339
6,371,656

564,444
703,326
898,263

200,158
202,100
238,991

23,650,285 22,226,168
24,587,018 19,621,684
24,997,338 19,683,967

204,512
220,446
207,186

11,843,323
11,858,702
11,910,503

8,089,412 12,901,700
5,379,375 12,787,000
5,943,693 12,969,100

Apr.
May
Jun.

8,360,499
8,997,816
9,375,946

1,632,375
1,658,467
1,691,991

5,273,686
5,707,053
5,817,650

1,184,820
1,352,864
1,556,321

269,618
279,432
309,985

26,015,780 21,281,766
26,928 21,063,798
17,154,146 20,367,309

333,583
733,519
749,976

10,709,300
12,011,793
12,578,722

5,891,615 12,727,354
6,244,569 12,727,354
2,352,192 13,485,787

Jul.
Aug.
Sep.

9,336,363
9,554,400
9,601,756

1,628,778
1,475,088
1,126,690

5,695,749
5,449,647
4,794,561

1,715,542
296,294
1,925,022
704,642
2,431,831 1,248,674

15,849,990 18,323,285
14,455,361 20,776,847
13,240,665 20,763,032

727,844
595,000
446,449

12,738,890
12,193,670
10,493,495

9,257,831 13,627,883
11,962,481 14,122,583
8,542,033 11,416,344

Oct.
Nov.
Dec.

10,277,076
10,452,186
11,184,704

1,293,246
1,015,318
1,020,578

4,653,536
4,857,285
5,083,145

2,751,967 1,578,327
3,025,906 1,553,676
3,309,414 1,771,566

5,616,009 19,779,325
9,596,561 23,809,403
21,493,198 24,490,360

564,137
371,138
1,520,145

11,513,747
10,913,118
11,479,800

13,008,453 12,120,525
7,392,187 8,452,040
6,841,541 8,651,893

2003 Jan.
Feb.
Mar.

11,394,515
11,778,746
13,733,529

888,438
874,176
1,726,060

5,245,911
5,253,885
5,674,702

3,371,091 1,889,076
3,702,981 1,947,704
4,294,518 2,038,249

16,824,495 23,680,441
19,442,303 24,162,041
18,504,748 20,950,860

5,432,484
5,138,904
5,215,819

9,350,880 13,737,911 8,635,235


8,827,187 12,693,102 10,158,849
8,618,774 10,017,733 12,500,900

Apr.
May
Jun.

15,898,425
17,425,211
19,142,360

1,701,570
1,718,457
1,687,774

6,781,869
7,312,957
7,784,952

5,051,696 2,363,290
5,806,562 2,587,235
6,912,711 2,756,923

20,297,554 19,053,233
22,522,351 18,188,912
22,871,404 22,944,261

4,952,006
4,785,009
4,793,423

8,676,838
6,922,606
9,758,227

Jul.
Aug.
Sep.

22,416,660
24,905,682
24,495,212

2,625,032 9,201,918
2,770,076 10,105,808
2,501,797 8,448,340

8,121,482 2,468,228
9,411,488 2,618,309
10,635,761 2,909,314

10,376,304 11,450,459
14,106,548 9,523,993
18,126,019 7,113,427

3,905,760
4,408,574
4,883,747

9,536,211 16,871,986 10,652,946


9,476,371 15,956,255 10,082,689
10,429,047 15,802,187 8,866,882

Oct.
26,666,508 2,570,283 8,512,178
Nov. 28,865,838 2,851,257 9,127,653
Dec.
32,577,090 3,464,904 10,247,530
1) Insurance companies included.

11,967,639 3,616,407
13,259,325 3,627,603
14,821,643 4,043,013

21,057,226
18,595,495
1,936,469

5,936,805
5,173,152
7,429,271

4,384,648
4,464,209
4,637,412

10,075,073 17,187,033
9,448,925 12,858,674
8,395,769
6,410,354

National Bank of Romania

6,662,681 11,754,048
654,179 10,600,111
4,790,401 10,522,938

8,569,954
8,288,183
8,223,936

231

Annual
Report
2003

Statistical Section

14. CONSOLIDATED MONETARY SURVEY


Period

1999
2000
2001
2002
2003

232

NET FOREIGN ASSETS


Total
Gold

Convertible
currencies,
net

- ROL millions; end of period NET DOMESTIC ASSETS


Total
Domestic credit
Total
Non-government credit
Total
ROL
Convertible
currencies

41,380,750
92,911,746
168,511,694
236,923,499
252,094,310

17,628,942
23,848,598
29,661,474
39,534,971
45,967,559

23,751,808
69,063,148
138,850,220
197,388,528
206,126,751

92,741,699
92,148,210
102,000,340
136,788,968
208,646,958

101,340,362
112,885,528
143,244,731
200,221,167
300,942,906

57,719,485
75,007,107
118,254,451
178,727,969
302,879,375

24,444,938
30,410,835
47,533,320
66,728,798
135,040,418

33,274,548
44,596,272
70,721,131
111,999,171
167,838,957

2000 Jan.
Feb.
Mar.

41,652,119
39,944,082
44,756,179

17,665,293
17,681,767
17,698,213

23,986,826
22,262,315
27,057,966

87,793,575
91,675,917
91,348,421

102,863,200
104,357,962
105,710,337

59,818,261
61,804,036
62,556,405

25,640,754
26,201,674
25,966,224

34,177,507
35,602,362
36,590,181

Apr.
May
Jun.

48,261,292
50,310,087
58,459,569

17,772,187
17,779,641
17,800,793

30,489,105
32,530,446
40,658,776

91,257,048
92,735,943
90,050,392

108,544,095
110,389,986
107,528,624

64,490,445
66,678,284
67,205,782

26,613,119
26,707,047
26,558,539

37,877,326
39,971,237
40,647,244

Jul.
Aug.
Sep.

65,915,462
70,780,986
78,202,713

17,811,574
17,829,229
17,848,399

48,103,888
52,951,757
60,354,314

86,974,321
87,353,770
85,066,882

108,440,388
109,037,019
109,886,197

67,570,049
69,907,872
73,162,981

27,598,482
28,012,355
30,111,623

39,971,567
41,895,517
43,051,357

Oct.
Nov.
Dec.

83,533,398
83,182,953
92,911,746

17,874,643
17,882,293
23,848,598

65,658,755
65,300,660
69,063,148

80,529,832
81,377,224
92,148,210

106,673,642
102,546,969
112,885,528

74,275,178
70,783,117
75,007,107

31,271,544
30,445,392
30,410,835

43,003,635
40,337,725
44,596,272

2001 Jan.
Feb.
Mar.

97,069,187
100,429,555
105,944,842

23,855,190
23,858,073
23,861,616

73,213,997
76,571,482
82,083,226

83,038,869
85,780,319
85,605,996

111,134,740
115,133,473
116,885,230

78,794,010
82,010,760
84,427,654

32,169,717
32,974,856
33,398,632

46,624,293
49,035,904
51,029,022

Apr.
May
Jun.

110,744,001
112,515,202
129,295,051

23,866,366
23,867,467
23,869,506

86,877,635
88,647,735
105,425,545

87,869,126
87,313,614
79,202,528

122,867,123
123,443,452
115,203,790

88,397,980
90,381,033
92,884,785

35,116,241
36,197,001
37,236,219

53,281,738
54,184,032
55,648,566

Jul.
Aug.
Sep.

136,921,914
145,887,745
150,392,854

23,873,446
23,874,117
23,875,226

113,048,468
122,013,628
126,517,628

79,455,071
80,669,377
84,752,216

120,005,076
122,833,363
129,349,391

97,206,053
99,369,058
103,230,142

39,072,200
39,227,712
41,898,485

58,133,854
60,141,346
61,331,656

Oct.
Nov.
Dec.

155,196,293
161,042,645
168,511,694

23,878,825
23,902,938
29,661,474

131,317,468
137,139,707
138,850,220

81,693,600
83,797,853
102,000,340

129,198,142
131,513,768
143,244,731

107,390,509
111,190,299
118,254,451

43,581,828
45,007,849
47,533,320

63,808,681
66,182,450
70,721,131

2002 Jan.
Feb.
Mar.

166,657,457
169,250,057
172,352,780

29,663,829
29,670,432
29,672,189

136,993,628
139,579,625
142,680,591

93,274,736
97,839,396
102,973,206

145,241,566
148,750,581
155,233,989

121,591,281
124,163,563
130,236,652

48,758,821
49,897,663
51,609,789

72,832,460
74,265,900
78,626,863

Apr.
May
Jun.

174,406,400
201,419,984
197,918,296

29,674,448
29,674,614
29,678,938

144,731,952
171,745,370
168,239,358

111,659,231
89,208,585
102,993,500

166,446,432
143,045,444
164,420,870

140,430,653
143,072,372
147,266,724

53,976,146
51,203,515
52,780,790

86,454,506
91,868,856
94,485,933

Jul.
Aug.
Sep.

203,312,915
210,154,280
209,264,500

29,682,734
29,684,063
29,690,539

173,630,181
180,470,217
179,573,961

100,163,681
104,695,939
108,067,953

161,825,032
165,289,136
170,243,344

145,975,042
150,833,775
157,002,679

53,233,089
54,617,143
58,079,313

92,741,953
96,216,632
98,923,366

Oct.
Nov.
Dec.

218,927,687
220,276,090
236,923,499

29,693,943
29,699,858
39,534,971

189,233,744
190,576,232
197,388,528

106,005,269
114,307,440
136,788,968

170,551,220
181,090,145
200,221,167

164,935,211
171,493,585
178,727,969

62,206,653
66,055,394
66,728,798

102,728,558
105,438,191
111,999,171

2003 Jan.
Feb.
Mar.

232,227,553
234,636,636
231,541,934

39,535,294
39,536,203
39,539,074

192,692,259
195,100,433
192,002,860

123,493,886
132,765,014
137,909,112

200,572,021
207,926,988
215,323,894

184,610,479
189,483,924
197,984,800

70,980,035
73,213,618
77,108,949

112,767,491
115,271,068
119,710,197

Apr.
May
Jun.

226,250,310
219,069,230
224,353,901

39,539,106
39,539,261
39,539,546

186,711,204
179,529,969
184,814,355

152,344,230
160,028,543
164,145,414

225,900,463
239,292,006
246,396,565

206,478,862
217,660,469
224,470,234

81,246,724
88,830,521
95,117,789

124,356,185
127,939,135
128,407,372

Jul.
Aug.
Sep.

251,291,142
257,757,497
262,485,293

39,538,263
39,536,934
39,538,991

211,752,879
218,220,563
222,946,302

139,584,406
149,638,100
151,983,052

220,307,682
232,323,223
242,183,819

231,600,309
247,485,256
261,777,818

99,715,943
106,179,155
114,190,497

130,968,043
140,302,271
146,268,955

Oct.
Nov.
Dec.

265,778,991
255,779,678
252,094,310

39,539,701
39,541,467
45,967,559

226,239,290
216,238,211
206,126,751

157,986,543
169,873,905
208,646,958

253,837,010
268,630,653
300,942,906

276,591,762
288,999,016
302,879,375

120,701,197
128,038,224
135,040,418

154,338,633
159,429,589
167,838,957

National Bank of Romania

Annual
Report
2003

Statistical Section

14. CONSOLIDATED MONETARY SURVEY


(continued)
Period
NET DOMESTIC ASSETS (continued)
Domestic credit (continued)
Government credit, net
Total
Treasury
Other
of which:
certificates credits to
government
1999
2000
2001
2002
2003

43,620,877
37,878,421
24,990,279
21,493,198
1,936,469

2000 Jan.
Feb.
Mar.

43,044,938 18,701,703
42,553,926 19,480,996
43,153,932 21,762,434

Apr.
May
Jun.

44,053,651 23,721,646
43,711,702 26,730,866
40,322,841 26,537,955

Jul.
Aug.
Sep.

40,870,339 26,174,627
39,129,147 21,836,518
36,723,216 21,448,323

Oct.
Nov.
Dec.

Deposits
from
MLT
external
financing
2,902,088
4,217,605
13,742,920
14,160,029
18,476,970

Unemployment
benefit
fund

Other
extrabudgetary
accounts

Forex
bonds

General
Account
of Treasury

Other
Deposits
governfrom Treasury
ment
investments
securities
21,087,847

25,907,889
504
12,970,102
555
8,651,893
616
8,223,936
15,168

152,735
77,482
27,186
192
0

2,575,596
4,704,636
3,334,188
3,646,622
5,720,364

14,021,955
2,757,719
11,757,921
11,479,800
8,395,769

2,846,741
1,015,642
4,313,854
6,841,541
6,410,354

2,888,372
2,916,721
2,987,097

147,810
135,986
132,368

2,473,174
2,495,640
2,709,313

11,370,249
11,633,111
9,995,553

1,915,475 21,087,847
2,486,102 19,622,916
2,353,247 19,623,306

690,029
148,649
45,336

3,061,353
3,098,761
3,328,045

127,340
121,865
114,140

2,968,398
2,845,354
8,131,060

9,073,638
7,614,127
8,266,067

2,174,565 19,623,306
4,152,495 19,623,306
2,496,807 19,623,306

33,283
38,123
34,434

45,411
51,458
53,288

3,401,581
3,528,401
3,739,033

108,701
102,128
95,464

7,035,528
2,708,069
2,997,328

8,270,362
8,289,464
6,745,972

1,950,618 19,110,056
2,298,761 17,627,219
2,291,322 17,627,219

233,688
38,152
28,440

32,398,463 17,373,058 1,624,574


31,763,851 19,273,343
52,160
37,878,421 19,041,836
186,847

3,892,839
4,189,202
4,217,605

88,940
82,641
77,482

3,352,458
6,418,196
4,704,636

2,539,805
2,565,802
2,757,719

3,719,887 21,963,889
5,306,212 25,907,889
1,015,642 25,907,889

48,739
39,091
504

2001 Jan.
Feb.
Mar.

32,340,731 17,150,594
33,122,713 18,228,842
32,457,576 17,459,339

403,093
383,801
347,119

4,227,737
4,219,212
4,482,293

73,551
68,653
64,858

7,246,295
5,818,088
8,423,459

2,852,605
2,912,287
4,555,366

3,107,020 26,637,889
3,436,939 25,172,959
2,053,873 25,157,817

48,849
32,284
37,583

Apr.
May
Jun.

34,469,144 18,905,307
33,062,419 18,423,764
22,319,005 17,200,340

327,496
302,927
414,724

4,519,139
4,626,786
4,702,353

60,544
57,791
53,132

4,635,847
9,744,639
21,388,431

4,076,212
7,850,361
8,052,924

4,739,807 25,157,817
4,208,593 25,157,817
2,336,144 25,157,817

42,351
34,640
26,740

Jul.
Aug.
Sep.

22,799,022 15,879,766
23,464,304 12,941,213
26,119,249 13,975,101

447,273
475,548
431,709

4,677,995
4,661,351
4,746,807

48,071
43,325
39,303

13,883,907
11,279,627
6,995,957

7,191,685
6,777,759
7,287,840

6,719,954 24,644,566
3,891,665 23,179,636
4,559,781 20,803,343

34,340
33,884
36,895

Oct.
Nov.
Dec.

21,807,633 15,829,151
20,323,469 16,552,526
24,990,279 21,363,034

892,939
157,264
317,927

10,132,026
9,979,824
13,742,920

35,217
30,879
27,186

8,554,401
9,220,118
3,334,188

11,396,471
10,816,226
11,757,921

7,045,151 19,503,359
7,425,487 19,503,359
4,313,854 12,970,102

47,492
49,597
555

2002 Jan.
Feb.
Mar.

23,650,285 22,226,168
24,587,018 19,621,684
24,997,338 19,683,967

204,512
220,446
207,186

12,022,535
11,246,039
10,633,072

24,392
22,134
19,225

3,332,898
3,204,873
3,134,386

11,843,323
11,858,702
11,910,503

8,089,412 12,901,700
5,379,375 12,787,000
5,943,693 12,969,100

56,181
48,392
43,041

Apr.
May
Jun.

26,015,780 21,281,766
26,928 21,063,798
17,154,146 20,367,309

333,583
733,519
749,976

10,056,971
36,708,182
24,246,112

16,594
14,370
11,576

3,047,971
3,565,946
3,390,503

10,709,300
12,011,793
12,578,722

5,891,615 12,727,354
6,244,569 12,727,354
2,352,192 13,485,787

23,072
30,326
27,266

Jul.
Aug.
Sep.

15,849,990 18,323,285
14,455,361 20,776,847
13,240,665 20,763,032

727,844
595,000
446,449

17,198,713
17,963,268
17,667,163

9,066
6,339
3,787

3,071,916
3,265,559
3,637,492

12,738,890
12,193,670
10,493,495

9,257,831 13,627,883
11,962,481 14,122,583
8,542,033 11,416,344

30,387
35,092
28,180

Oct.
Nov.
Dec.

5,616,009 19,779,325
564,137
9,596,561 23,809,403
371,138
21,493,198 24,490,360 1,520,145

21,485,113
21,322,746
14,160,029

2,048
925
192

3,830,369
5,200,473
3,646,622

11,513,747
10,913,118
11,479,800

13,008,453 12,120,525
7,392,187 8,452,040
6,841,541 8,651,893

35,743
32,807
616

2003 Jan.
Feb.
Mar.

16,824,495 23,680,441 5,432,484


19,442,303 24,162,041 5,138,904
18,504,748 20,950,860 5,215,819

12,853,558
12,482,085
14,982,227

220
124
52

3,641,066
3,630,091
3,738,204

9,350,880 13,737,911 8,635,235


8,827,187 12,693,102 10,158,849
8,618,774 10,017,733 12,500,900

41,788
39,276
43,388

Apr.
May
Jun.

20,297,554 19,053,233 4,952,006


22,522,351 18,188,912 4,785,009
22,871,404 22,944,261 4,793,423

13,483,658
13,317,499
16,145,799

148
160
37

3,950,777
3,977,698
4,187,397

8,676,838
6,922,606
9,758,227

6,662,681 11,754,048
654,179 10,600,111
4,790,401 10,522,938

41,306
24,749
23,812

Jul.
Aug.
Sep.

10,376,304 11,450,459 3,905,760


14,106,548 9,523,993 4,408,574
18,126,019 7,113,427 4,883,747

24,374,395
26,904,424
29,013,160

77
83
33

4,643,488
4,759,305
4,621,318

9,536,211 16,871,986 10,652,946


9,476,371 15,956,255 10,082,689
10,429,047 15,802,187 8,866,882

31,735
29,444
33,762

Oct.
Nov.
Dec.

21,057,226
18,595,495
1,936,469

28,092,490
27,567,724
18,476,970

198
134
0

4,760,362
5,563,155
5,720,364

10,075,073 17,187,033
9,448,925 12,858,674
8,395,769
6,410,354

34,960
31,615
15,168

National Bank of Romania

15,928,235 1,060,000
19,041,836
186,847
21,363,034
317,927
24,490,360 1,520,145
7,429,271 4,637,412

- ROL millions; end of period -

5,936,805 4,384,648
5,173,152 4,464,209
7,429,271 4,637,412

8,569,954
8,288,183
8,223,936

233

Annual
Report
2003

Statistical Section

14. CONSOLIDATED MONETARY SURVEY


(continued)
Period
NET DOMESTIC ASSETS (continued)
Other assets, net
Total
NonconFloat
vertible
foreign
assets,
net

234

Capital
accounts

Other

BROAD MONEY (M2)


Total
of which:
ROL

- ROL millions; end of period Memorandum


items
Convertible
Gold price 1)
currencies
(ROL/gram)

1999
2000
2001
2002
2003

8,598,663
20,737,318
41,244,391
63,432,200
92,295,948

113,702
103,348
209,666
1,262,105
1,314,883

365,166
599,433
337,075
662,880
1,065,297

18,348,599
25,650,208
50,900,002
64,852,312
81,225,699

10,228,804
5,615,671
10,202,351
820,888
11,319,836

134,122,453
185,059,961
270,512,032
373,712,465
460,741,266

83,640,941
110,203,646
154,727,893
226,900,750
289,582,659

50,481,511
74,856,314
115,784,139
146,811,715
171,158,607

170,703
227,264
282,004
375,351
437,404

2000 Jan.
Feb.
Mar.

15,069,625
12,682,046
14,361,916

108,638
110,175
118,539

1,687,784
395,161
1,680,433

17,994,471
18,212,346
19,517,147

4,721,267
5,245,314
6,954,202

129,445,695
131,619,998
136,104,600

79,644,012
82,527,081
84,884,441

49,801,683
49,092,918
51,220,159

170,703
170,703
170,703

Apr.
May
Jun.

17,287,047
17,654,043
17,478,232

139,902
144,629
150,297

1,412,631
1,433,192
1,727,781

20,706,488
22,923,557
23,398,841

4,971,973
6,847,336
7,798,688

139,518,340
143,046,028
148,509,958

87,951,035
88,030,643
90,839,956

51,567,304
55,015,385
57,670,001

170,703
170,703
170,703

Jul.
Aug.
Sep.

21,466,067
21,683,249
24,819,315

302,156
130,836
147,553

1,830,608
1,603,783
2,137,895

24,699,388
24,663,084
25,404,805

5,366,086
4,714,455
2,870,939

152,889,785
158,134,756
163,269,595

92,623,023
93,350,161
95,053,883

60,266,761
64,784,595
68,215,712

170,703
170,703
170,703

Oct.
Nov.
Dec.

26,143,809
21,169,745
20,737,318

115,555
114,606
103,348

3,299,250
2,086,395
599,433

25,049,518
26,093,049
25,650,208

2,320,513
7,124,305
5,615,671

164,063,229
164,560,178
185,059,961

92,832,562
94,196,186
110,203,646

71,230,667
70,363,992
74,856,314

170,703
170,703
227,264

2001 Jan.
Feb.
Mar.

28,095,872
29,353,154
31,279,234

104,332
95,928
102,340

1,342,183
1,368,112
1,385,630

28,562,239
29,499,358
31,250,926

1,912,882
1,610,243
1,459,663

180,108,055
186,209,872
191,550,838

101,572,799
105,807,693
108,292,072

78,535,256
80,402,179
83,258,766

227,264
227,264
227,264

Apr.
May
Jun.

34,997,997
36,129,838
36,001,263

118,471
120,479
141,949

217,544
2,313,665
2,432,638

33,241,044
37,985,484
38,968,095

1,420,938
4,289,790
5,541,419

198,613,126
199,828,816
208,497,580

111,407,433
111,923,607
118,566,774

87,205,693
87,905,210
89,930,806

227,264
227,264
227,264

Jul.
Aug.
Sep.

40,550,004
42,163,986
44,597,175

131,040
80,435
100,007

2,835,151
2,643,308
3,067,860

43,011,915
43,626,102
44,341,664

5,428,103
4,185,858
2,912,356

216,376,985
226,557,124
235,145,070

120,438,832
123,896,590
128,347,696

95,938,153
102,660,533
106,797,374

227,264
227,264
227,264

Oct.
Nov.
Dec.

47,504,542
47,715,915
41,244,391

108,961
125,209
209,666

2,759,585
2,861,837
337,075

44,774,773
46,015,663
50,900,002

138,778
1,286,794
10,202,351

236,889,893
244,840,498
270,512,032

129,383,941
132,943,659
154,727,893

107,505,951
111,896,839
115,784,139

227,264
227,264
282,004

2002 Jan.
Feb.
Mar.

51,966,829
50,911,184
52,260,784

285,287
350,111
279,606

3,412,228
4,673,424
3,164,724

45,637,144
46,486,860
45,034,998

2,632,171
599,210
3,781,456

259,932,192
267,089,453
275,325,985

143,218,168
151,337,429
157,746,093

116,714,025
115,752,024
117,579,892

282,004
282,004
282,004

Apr.
May
Jun.

54,787,201
53,836,859
61,427,369

180,500
174,997
167,303

3,593,193
2,887,209
4,198,675

45,697,572
46,640,628
51,936,293

5,315,937
4,134,025
5,125,099

286,065,633
290,628,567
300,911,796

167,134,077
167,586,885
176,347,744

118,931,556
123,041,682
124,564,052

282,004
282,004
282,004

Jul.
Aug.
Sep.

61,661,350
60,593,197
62,175,391

202,883
187,977
200,549

4,128,546
5,019,930
5,120,074

51,626,124
52,281,448
52,541,344

5,703,797
3,103,842
4,313,423

303,476,597
314,850,220
317,332,453

180,577,587
188,461,620
189,458,218

122,899,010
126,388,600
127,874,234

282,004
282,004
282,004

Oct.
Nov.
Dec.

64,545,951
66,782,706
63,432,200

247,185
162,939
1,262,105

4,657,082
5,804,115
662,880

53,631,958
54,362,708
64,852,312

6,009,725
6,452,944
820,888

324,932,958
334,583,530
373,712,465

194,972,478
199,408,663
226,900,750

129,960,480
135,174,867
146,811,715

282,004
282,004
375,351

2003 Jan.
Feb.
Mar.

77,078,134
75,161,975
77,414,783

1,250,378
1,284,777
1,217,258

4,467,429
4,885,752
5,093,788

68,242,034
67,127,585
65,084,740

5,619,050
4,433,414
8,453,513

355,721,441
367,401,650
369,451,045

210,546,431
219,368,221
223,134,499

145,175,010
148,033,429
146,316,546

375,351
375,351
375,351

Apr.
May
Jun.

73,556,232
79,263,465
82,251,149

1,234,424
1,217,177
1,183,255

3,705,997
4,922,674
8,455,542

63,010,247
64,397,172
65,750,023

8,074,412
11,160,796
9,228,838

378,594,540
379,097,773
388,499,313

232,341,507
228,810,296
235,808,560

146,253,033
150,287,477
152,690,754

375,351
375,351
375,351

Jul.
Aug.
Sep.

80,723,276
82,685,123
90,200,768

1,106,565
1,361,327
1,218,591

5,899,388
4,236,855
6,758,509

67,027,865
68,235,158
68,623,893

8,902,588
11,574,437
16,036,957

390,875,549
407,395,597
414,468,345

238,305,869
250,231,264
254,848,467

152,569,680
157,164,333
159,619,878

375,351
375,351
375,351

Oct. 95,850,468
1,277,978
6,909,520
Nov. 98,756,748
1,347,675
8,224,934
Dec. 92,295,948
1,314,883
1,065,297
1) The stock is revalued at the end of the year.

70,450,934
70,264,242
81,225,699

19,767,991
21,615,247
11,319,836

423,765,532
425,653,586
460,741,266

256,384,418
257,481,608
289,582,659

167,381,114
168,171,978
171,158,607

375,351
375,351
437,404

National Bank of Romania

Annual
Report
2003

Statistical Section

15. MONETARY BALANCE SHEET OF THE NATIONAL BANK OF ROMANIA


- ROL millions; end of period Period

ASSETS

FOREIGN ASSETS
Total
Gold

Convertible currencies
Total
Currency Demand
and
deposits
cheques with BIS

Securities *)
Demand
Demand
deposits
deposits
with FED*) and
deposits
with other
foreign
banks
470,149
3,363,430
2,727,129
7,644,411
12,572,738
4,924,497
10,441 19,016,837
23,861 19,691,963

1999
2000
2001
2002
2003

99,755,894 45,491,075
148,563,426 87,877,393
219,687,864 153,599,643
309,254,535 293,825,190
371,843,284 360,434,413

17,628,942
23,848,598
29,661,474
39,534,971
45,967,559

4,695,948
12,832,309
21,721,398
23,873,288
24,479,205

11,316
852
3,232
1,344
478

667,069
2,434,566
4,006,007
4,768,238
4,753,902

2000 Jan.
Feb.
Mar.

99,292,793
98,039,176
101,095,441

48,484,635
46,819,896
49,045,035

17,665,293
17,681,767
17,698,213

5,278,709
3,287,393
3,423,852

868
585
239

947,046
798,271
258,690

1,126,257
520,761
745,476

Apr.
May
Jun.

103,031,658
115,364,932
119,367,194

51,335,477
50,862,666
58,013,123

17,772,187
17,779,641
17,800,793

4,695,901
3,615,163
8,942,588

1,630
6
96

397,920
267,301
2,795,266

Jul.
Aug.
Sep.

124,447,608
118,650,619
126,991,442

64,879,270
66,456,675
68,837,889

17,811,574
17,829,229
17,848,399

11,149,017
8,207,278
8,017,529

38
60
13

Oct.
Nov.
Dec.

126,189,559
130,181,675
148,563,426

73,504,191
75,651,399
87,877,393

17,874,643
17,882,293
23,848,598

9,359,159
11,052,450
12,832,309

2001 Jan.
Feb.
Mar.

144,287,913 91,349,687
146,067,526 94,178,337
161,742,410 100,921,692

23,855,190
23,858,073
23,861,616

Apr.
May
Jun.

156,541,448 104,443,296
170,764,950 110,533,513
195,075,967 127,483,308

Jul.
Aug.
Sep.

SDR
holdings
with IMF

23,166,185
51,196,486
102,216,771
181,338,707
237,585,131

183,984
25,351
214,924
76,428
9,001

3,020,334
1,894,162
2,347,031

25,540,633
25,850,736
27,922,970

184,204
73,615
72,416

1,764,480
588,723
1,876,866

2,399,542
2,754,206
4,101,347

28,867,389
29,467,862
31,269,742

132,329
4,927
169,013

1,018,492
484,920
597,913

7,537,830
2,243,581
1,659,630

2,422,518
5,476,286
5,757,420

35,918,679
40,420,168
42,971,961

170,139
2,431
2,553

29
83
852

1,357,387
3,295,827
2,434,566

2,477,221
1,555,134
2,727,129

5,298,346
6,176,986
7,644,411

46,270,389
46,716,656
51,196,486

226,176
24,420
25,351

15,152,769
12,497,545
10,411,889

8
123
1

4,717,358
4,285,645
2,176,876

4,798,677
4,694,286
5,917,459

5,402,181
3,475,237
2,275,234

52,341,728
57,822,719
66,648,187

234,545
42,254
42,319

23,866,366
23,867,467
23,869,506

8,892,153
10,215,759
27,480,196

475 1,027,850
128 1,252,136
2 14,571,915

5,020,730
5,788,326
10,218,741

2,620,117
2,950,902
2,637,127

71,684,777
76,450,287
76,133,606

222,981
224,267
52,411

191,692,717 129,733,775
192,321,394 133,050,292
198,178,469 135,347,980

23,873,446
23,874,117
23,875,226

19,047,852
22,455,303
23,041,082

323 11,379,349
2 12,253,851
12,405,466

4,785,524
7,388,884
7,704,913

2,815,601
2,763,984
2,881,140

86,812,477
86,720,872
88,431,672

67,055
48,582
49,563

Oct.
Nov.
Dec.

188,447,844 132,670,317
191,945,455 136,847,332
219,687,864 153,599,643

23,878,825
23,902,938
29,661,474

15,393,443
15,293,781
21,721,398

335
1,099
3,232

7,779,150
4,883,633
4,006,007

4,034,267
6,834,499
12,572,738

3,229,824
3,357,908
4,924,497

93,398,049
97,650,613
102,216,771

349,867
216,642
214,924

2002 Jan.
Feb.
Mar.

211,303,359 150,932,904
216,316,498 156,561,209
227,014,428 163,657,955

29,663,829
29,670,432
29,672,189

7,985,310
4,576,768
3,912,732

626
73
53

3,251,700
1,302,972
1,200,462

5,114
5,790
3,622

4,510,788
3,154,400
2,593,507

113,283,765
122,314,009
130,073,034

217,082
113,533
115,088

Apr.
May
Jun.

233,628,045 173,551,649
266,994,438 202,192,633
266,263,854 197,688,393

29,674,448
29,674,614
29,678,938

9,063,866
24,005,242
17,284,328

20 1,428,608
96 13,726,185
997 3,536,972

6,501
33,440
4,091

7,509,515
10,227,877
13,719,727

134,813,335
148,512,777
150,725,127

119,222
17,644
22,541

Jul.
Aug.
Sep.

263,111,306 201,855,814
275,185,713 214,263,872
278,634,861 214,669,811

29,682,734
29,684,063
29,690,539

18,704,991
16,379,838
16,326,221

599
73
153

5,423,144
4,463,164
5,074,960

3,462
4,482
30,685

13,255,557
11,700,994
11,020,622

153,468,089
168,199,971
168,653,051

22,229
211,125
199,801

Oct.
Nov.
Dec.

293,192,889 231,396,016
289,647,364 229,986,415
309,254,535 293,825,190

29,693,943
29,699,858
39,534,971

18,324,937
20,266,110
23,873,288

2,418
722
1,344

4,183,725
2,620,836
4,768,238

9,745
11,615
10,441

13,935,200
17,557,860
19,016,837

183,377,136
180,020,447
181,338,707

193,849
75,077
76,428

2003 Jan.
Feb.
Mar.

309,725,645 295,613,372
310,651,898 296,356,915
312,776,385 298,469,530

39,535,294
39,536,203
39,539,074

23,121,987
22,467,331
22,407,403

354
626
566

4,227,730
3,195,883
3,322,615

8,705
10,214
35,688

18,581,041
19,067,466
18,853,477

183,884,181
185,282,739
187,447,044

304,157
193,142
195,057

Apr.
May
Jun.

315,018,836 300,696,921
301,542,080 289,773,284
308,789,327 294,429,377

39,539,106
39,539,261
39,539,546

24,261,936
27,462,945
28,875,293

340
355
455

3,223,114
5,814,382
5,909,333

18,238
16,499
1,641,000

20,837,188
21,547,130
21,226,156

187,763,839
173,051,035
176,156,521

183,056
84,579
98,349

Jul.
Aug.
Sep.

334,728,358 322,976,829
348,846,141 335,829,983
358,290,669 346,027,074

39,538,263
39,536,934
39,538,991

41,546,576
30,061,377
35,414,306

6,604
293
558

8,418,018
4,259,169
8,986,120

358,762
27,217
25,026

32,548,023
25,655,048
26,281,732

192,043,525
216,200,632
221,059,314

215,169
119,650
120,870

Oct.
39,539,701
36,508,530
423 5,868,513
372,865,809 361,076,086
Nov.
39,541,467
26,550,329
385 7,943,386
367,312,491 354,710,364
Dec.
45,967,559
24,479,205
478 4,753,902
371,843,284 360,434,413
*) Starting January 2002, demand deposits with FED have been subject to reclassification.

27,338
26,884
23,861

30,500,132
18,570,636
19,691,963

234,968,027
238,558,931
237,585,131

112,124
9,038
9,001

National Bank of Romania

235

Annual
Report
2003

Statistical Section

15. MONETARY BALANCE SHEET OF THE NATIONAL BANK OF ROMANIA


(continued)
Period
FOREIGN ASSETS (continued)
Romania's quota (subscriptions)
Total
IMF
IBRD

1999
2000
2001
2002
2003

BIS

IFC

- ROL millions; end of period DOMESTIC ASSETS


Total
Vault Romania's quota (subscriptions)
MIGA
cash
Total
IMF
Total
Gold
SDR

EBRD

x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
49,078,224 46,919,405 878,510 325,200 89,144 798,669 67,296
52,402,518 49,898,044 987,696 483,760 86,735 880,805 65,478

54,264,819
60,686,033
66,088,221
15,429,345
11,408,871

30,847 21,692,406 20,808,086


844,470 3,374,963
44,147 28,610,495 27,248,922 1,105,864 4,419,633
54,879 42,674,754 40,872,032 1,657,199 6,623,067
52,581
x
x
x
x
45,296
x
x
x
x

2000 Jan.
Feb.
Mar.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 50,808,158 32,011 21,699,384 20,808,086


x 51,219,280 32,298 21,713,574 20,808,086
x 52,050,406 32,051 21,733,112 20,808,086

Apr.
May
Jun.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 51,696,181 32,530 21,783,824 20,808,086


844,470 3,374,963
x 64,502,266 32,526 28,245,296 27,248,922 1,105,864 4,419,633
x 61,354,071 33,839 28,458,703 27,248,922 1,105,864 4,419,633

Jul.
Aug.
Sep.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 59,568,338 36,663 28,476,381 27,248,922 1,105,864 4,419,633


x 52,193,944 29,991 28,512,368 27,248,922 1,105,864 4,419,633
x 58,153,553 30,076 28,552,111 27,248,922 1,105,864 4,419,633

Oct.
Nov.
Dec.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 52,685,368 39,794 28,574,741 27,248,922 1,105,864 4,419,633


x 54,530,276 40,674 28,591,822 27,248,922 1,105,864 4,419,633
x 60,686,033 44,147 28,610,495 27,248,922 1,105,864 4,419,633

2001 Jan.
Feb.
Mar.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 52,938,226 43,547 28,630,003 27,248,922 1,105,864 4,419,633


x 51,889,189 46,689 28,648,145 27,248,922 1,105,864 4,419,633
x 60,820,718 45,932 28,664,994 27,248,922 1,105,864 4,419,633

Apr.
May
Jun.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 52,098,152 47,641 28,748,140 27,248,922 1,105,864 4,419,633


x 60,231,437 51,078 38,276,148 36,758,986 1,491,817 5,962,116
x 67,592,659 52,864 38,445,665 36,758,986 1,491,817 5,962,116

Jul.
Aug.
Sep.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 61,958,942 52,040 38,456,743 36,758,986 1,491,817 5,962,116


x 59,271,102 54,543 38,500,811 36,758,986 1,491,817 5,962,116
x 62,830,489 52,613 38,517,224 36,758,986 1,491,817 5,962,116

Oct.
Nov.
Dec.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 55,777,527 53,809 38,536,762 36,758,986 1,491,817 5,962,116


x 55,098,123 54,880 38,553,797 36,758,986 1,491,817 5,962,116
x 66,088,221 54,879 42,674,754 40,872,032 1,657,199 6,623,067

2002 Jan.
Feb.
Mar.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 60,370,455 57,568 42,656,271 40,834,037 1,657,199 6,623,067


x 59,755,289 57,297 42,706,825 40,872,032 1,657,199 6,623,067
x 63,356,473 59,363 42,723,250 40,872,032 1,657,199 6,623,067

Apr.
May
Jun.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 60,076,396 54,847 42,790,986 40,872,032 1,657,199 6,623,067


x 64,801,805 53,423 45,620,081 43,689,382 1,773,079 7,086,189
x 68,575,461 59,540 45,837,001 43,689,382 1,773,079 7,086,189

Jul.
Aug.
Sep.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x 61,255,492 57,074 45,808,958 43,689,382 1,773,079 7,086,189


x 60,921,841 54,831 45,823,614 43,689,382 1,773,079 7,086,189
x 63,965,050 56,444 45,816,693 43,689,382 1,773,079 7,086,189

Oct.
Nov.
Dec.

844,470 3,374,963
844,470 3,374,963
844,470 3,374,963

x
x
x
x
x
x
x 61,796,873 53,313 45,836,643 43,689,382 1,773,079 7,086,189
x
x
x
x
x
x
x 59,660,949 54,412 45,839,945 43,689,382 1,773,079 7,086,189
49,078,224 46,919,405 878,510 325,200 89,144 798,669 67,296 15,429,345 52,581
x
x
x
x

2003 Jan.
Feb.
Mar.

49,071,910 46,919,405 877,382 321,608 88,159 798,803 66,553 14,112,273 51,652


49,070,642 46,919,405 877,354 321,520 88,135 797,693 66,535 14,294,983 53,460
49,076,009 46,919,405 877,562 322,181 88,316 801,874 66,671 14,306,855 46,553

x
x
x

x
x
x

x
x
x

x
x
x

Apr.
May
Jun.

49,132,040 46,919,405 877,638 322,423 88,382 857,471 66,721 14,321,915 47,540


49,720,043 47,534,456 874,410 312,153 85,567 848,861 64,596 11,768,796 50,500
49,858,017 47,534,456 988,975 320,482 87,850 859,934 66,320 14,359,950 48,780

x
x
x

x
x
x

x
x
x

x
x
x

Jul.
Aug.
Sep.

49,848,465 47,534,456 988,300 320,482 87,262 852,089 65,876 11,751,529 48,527


50,031,040 47,534,456 992,410 469,380 90,847 875,365 68,582 13,016,158 45,930
50,014,463 47,534,456 988,786 472,010 87,685 865,331 66,195 12,263,595 43,596

x
x
x

x
x
x

x
x
x

x
x
x

Oct.
Nov.
Dec.

50,059,828 47,534,456 991,681 486,080 90,211 889,298 68,102 11,789,723 46,846


50,059,637 47,534,456 990,528 489,190 89,205 888,916 67,342 12,602,127 49,329
52,402,518 49,898,044 987,696 483,760 86,735 880,805 65,478 11,408,871 45,296

x
x
x

x
x
x

x
x
x

x
x
x

236

National Bank of Romania

Annual
Report
2003

Statistical Section

15. MONETARY BALANCE SHEET OF THE NATIONAL BANK OF ROMANIA


(continued)
Period
DOMESTIC ASSETS (continued)
Romania's quota (subscriptions) (continued)
IMF (continued)
IBRD
ConROL
Total
ConROL
vertible
vertible
currencurrencies
cies

1999
2000
2001
2002
2003

- ROL millions; end of period -

BIS
(ROL)

Government credit
MIGA Total
Treasury
(ROL)
certificates
in ROL

IFC
EBRD
(ROL) (ROL)

704,865 15,883,788 286,934 95,953 190,981 177,209 48,577 349,675 21,925 21,411,781
923,045 20,800,380 500,280 117,856 382,424 251,675 68,989 509,492 31,137 16,176,131
1,421,230 31,170,536 666,899 278,296 388,603 306,726 84,080 681,544 63,473 8,414,865
x
x
x
x
x
x
x
x
x 2,347,514
x
x
x
x
x
x
x
x
x
5,204

Other
government
securities
in ROL

Forex
bonds

16,838,903
16,176,131
1,657,090 6,757,775
2,347,514

5,204

4,572,878

96,553 190,981 179,248 49,135 353,204 22,177 19,295,560


97,772 190,981 183,393 50,272 360,380 22,690 19,776,033
99,451 190,981 189,101 51,836 370,261 23,396 19,882,873

517,832 16,838,903
17,792,373
17,837,473

1,938,825
1,983,660
2,045,400

Apr.
May
Jun.

704,865 15,883,788 292,134 101,153 190,981 194,887 53,422 411,183 24,112 19,968,993
923,045 20,800,380 293,907 102,926 190,981 200,915 55,075 421,619 24,858 24,004,035
923,045 20,800,380 487,237 104,813 382,424 207,332 56,834 432,727 25,651 20,038,934

18,061,773
2,645,073 17,943,957
33,380 17,976,544

1,907,220
3,415,005
2,029,010

Jul.
Aug.
Sep.

923,045 20,800,380 488,756 106,332 382,424 212,496 58,249 441,668 26,290 19,715,965
923,045 20,800,380 491,848 109,424 382,424 223,009 61,131 459,867 27,591 11,760,587
923,045 20,800,380 495,263 112,839 382,424 234,619 64,314 479,966 29,027 16,170,431

33,380 17,603,035
11,170 9,566,982
16,170,431

2,079,550
2,182,435

Oct.
Nov.
Dec.

923,045 20,800,380 497,208 114,784 382,424 241,230 66,126 491,410 29,845 10,388,031
923,045 20,800,380 498,675 116,251 382,424 246,220 67,494 500,048 30,463 11,057,571
923,045 20,800,380 500,280 117,856 382,424 251,675 68,989 509,492 31,137 16,176,131

10,388,031
11,057,571
16,176,131

2001 Jan.
Feb.
Mar.

923,045 20,800,380 501,956 119,532 382,424 257,374 70,551 519,357 31,843 9,103,931
923,045 20,800,380 503,515 121,091 382,424 262,674 72,004 528,532 32,498 7,590,301
923,045 20,800,380 504,963 122,539 382,424 267,596 73,353 537,053 33,107 14,657,001

9,103,931
7,590,301
14,657,001

Apr.
May
Jun.

923,045 20,800,380 506,813 124,389 382,424 273,886 75,077 609,556 33,886 8,158,034
1,245,194 28,059,859 508,355 125,931 382,424 279,128 76,514 618,631 34,534 7,274,934
1,245,194 28,059,859 653,761 271,337 382,424 283,069 77,595 625,454 46,800 14,540,134

8,158,034
7,274,934
14,540,134

Jul.
Aug.
Sep.

1,245,194 28,059,859 655,084 272,660 382,424 283,069 78,827 633,234 47,543


1,245,194 28,059,859 656,286 273,862 382,424 291,651 79,947 653,588 60,353
1,245,194 28,059,859 657,488 275,064 382,424 295,737 81,067 662,747 61,199

9,687,584
6,988,753
9,718,649

9,687,584
6,988,753
9,718,649

Oct.
Nov.
Dec.

1,245,194 28,059,859 659,064 276,640 382,424 301,077 82,531 672,800 62,304


1,245,194 28,059,859 660,534 278,110 382,424 306,095 83,907 680,932 63,343
1,421,230 31,170,536 666,899 278,296 388,603 306,726 84,080 681,544 63,473

2,489,078
3,028,978
8,414,865

1,657,090

2,489,078
3,028,978
6,757,775

2002 Jan.
Feb.
Mar.

1,383,235 31,170,536 668,690 286,266 382,424 312,425 85,642 690,825 64,652


1,421,230 31,170,536 669,956 287,532 382,424 312,425 86,746 700,180 65,486
1,421,230 31,170,536 670,834 288,410 382,424 319,249 87,512 707,558 66,065

5,820,587
3,316,554
7,032,554

1,089,037

4,731,550
3,316,554
7,032,554

Apr.
May
Jun.

1,421,230 31,170,536 672,537 290,113 382,424 324,666 88,997 765,568 67,186


1,479,959 33,350,155 672,805 290,381 382,424 325,520 89,231 775,781 67,362
1,479,959 33,350,155 878,440 496,016 382,424 325,520 89,082 787,327 67,250

3,062,588
5,530,455
7,032,550

3,062,588
5,530,455
7,032,550

Jul.
Aug.
Sep.

1,479,959 33,350,155 876,643 494,219 382,424 319,259 87,515 770,092 66,067


1,479,959 33,350,155 877,641 495,217 382,424 322,433 88,385 779,050 66,723
1,479,959 33,350,155 877,153 494,729 382,424 320,880 87,959 774,917 66,402

1,502,955
1,868,355
4,421,636

1,502,955
1,868,355
4,421,636

Oct.
Nov.
Dec.

1,479,959 33,350,155 878,584 496,160 382,424 325,433 89,207 786,693 67,344


1,479,959 33,350,155 878,721 496,297 382,424 325,869 89,327 789,211 67,435
x
x
x
x
x
x
x
x
x

2,740,336
991,336
2,347,514

2,740,336
991,336
2,347,514

2000 Jan.
Feb.
Mar.

704,865 15,883,788 287,534


704,865 15,883,788 288,753
704,865 15,883,788 290,432

2003 Jan.
Feb.
Mar.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

2,342,714
2,262,445
2,262,445

2,342,714
2,262,445
2,262,445

Apr.
May
Jun.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

2,262,445
6,245
6,245

2,262,445
6,245
6,245

Jul.
Aug.
Sep.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

6,245
6,245
5,204

6,245
6,245
5,204

Oct.
Nov.
Dec.

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

x
x
x

5,204
5,204
5,204

5,204
5,204
5,204

National Bank of Romania

237

Annual
Report
2003

Statistical Section

15. MONETARY BALANCE SHEET OF THE NATIONAL BANK OF ROMANIA


(continued)
Period
DOMESTIC ASSETS (continued)
Interbank
Other assets
assets
Total
Settlements Other
Interest
with IMF precious and com(G.O. 30/ metals
missions
1996)
receivable

Net losses
from forex
assets and
liabilities
revaluation

Other

1999
2000
2001
2002
2003

2,433,138
2,296,000
1,147,815

8,696,647
13,559,260
13,795,908
13,029,250
11,358,371

908,627

250,358
333,869
332,734
410,614
118,166

3,049,437
3,019,765
2,014,695
1,693,711
2,365,703

4,488,225
10,205,626
137,146 11,311,333
10,924,925
8,874,502

2000 Jan.
Feb.
Mar.

2,703,138
503,138
1,853,138

7,078,065
9,194,237
8,549,232

908,627
908,627
908,627

251,981
251,999
252,626

2,037,007
2,662,539
3,611,464

27,412

Apr.
May
Jun.

1,873,138 8,037,696
1,270,000 10,950,409
1,255,000 11,567,595

908,627
908,627
908,627

190,106
190,811
190,962

2,092,378
1,874,701
2,846,326

Jul.
Aug.
Sep.

1,225,000 10,114,329
1,495,000 10,395,998
1,765,000 11,635,935

908,627
908,627
908,627

191,070
190,017
192,820

1,645,314
1,614,586
2,739,142

Oct.
Nov.
Dec.

2,077,000 11,605,802
2,207,000 12,633,209
2,296,000 13,559,260

908,627
908,627

193,523
193,018
333,869

2001 Jan.
Feb.
Mar.

2,666,000 12,494,745
2,954,000 12,650,054
3,262,000 14,190,791

Apr.
May
Jun.

1,160,500 13,983,837
1,171,000 13,458,277
1,141,000 13,412,996

Jul.
Aug.
Sep.

- ROL millions; end of period LIABILITIES FOREIGN LIABILITIES


Short-term
Total
Total
Deposits
of
foreign
banks

10,456,980 1,867,893
14,332,921 2,592,600
15,367,646 3,159,700
14,257,696

19,519,531

99,755,894
148,563,431
219,687,864
309,254,532
371,843,284

15,888,147
22,018,594
15,367,646
61,895,623
70,237,508

3,880,450
5,371,072
3,749,103

99,292,793
98,039,176
101,095,441

15,983,889 10,491,003 1,889,380


16,223,634 10,605,253 1,933,071
16,637,046 10,845,852 1,993,237

27,412
822,368
328,750

4,819,173
7,153,902
7,292,930

103,031,658
115,364,932
119,367,194

14,978,846 9,012,488
14,990,838 8,841,968
17,631,335 11,288,197

7,369,318
7,682,768
7,795,346

124,447,608
118,650,619
126,991,442

19,866,667 13,367,174 2,189,000


20,719,983 13,902,196 2,297,300
21,626,450 14,457,159 2,416,900

1,655,791
1,753,079
3,019,765

8,847,861
76,064 9,702,421
10,205,626

126,189,559
130,181,675
148,563,431

21,853,603 14,484,166 2,485,000


21,764,496 14,243,994 2,536,400
22,018,594 14,332,921 2,592,600

333,113
332,068
331,722

1,973,447
1,827,908
2,989,055

59,740 10,128,445
59,740 10,430,338
122,282 10,747,732

144,287,913
146,067,526
161,742,410

22,155,883 14,297,690 2,651,300


21,921,036 14,578,849 2,705,900
21,862,623 14,384,104 2,756,600

331,205
330,527
329,434

2,113,477
1,765,691
2,719,321

196,379 11,342,776
1,054,971 10,307,088
197,527 10,166,714

156,541,448
170,764,950
195,075,967

22,146,397 14,493,630 2,821,400


21,845,666 14,047,693 2,875,400
21,803,551 13,896,405 2,916,000

1,002,000 12,760,575
1,030,000 12,696,995
1,065,815 13,476,188

328,825
328,439
328,080

1,865,223
1,933,669
2,649,002

208,261 10,358,266
208,261 10,226,626
229,609 10,269,497

191,692,717
192,321,394
198,178,469

18,995,689 10,964,042
19,420,194 11,341,362
19,466,065 11,274,026

Oct.
Nov.
Dec.

1,097,815 13,600,063
1,146,815 12,313,653
1,147,815 13,795,908

324,902
324,449
332,734

1,901,059
1,836,243
2,014,695

254,754 11,119,348
104,453 10,048,508
137,146 11,311,333

188,447,844
191,945,455
219,687,864

11,076,003 11,076,003

12,606,915 12,606,915
15,367,646 15,367,646 3,159,700

2002 Jan.
Feb.
Mar.

1,112,815 10,723,214
1,033,815 12,640,798
860,861 12,680,445

332,199
332,245
331,382

1,276,330
1,334,839
1,654,322

30,473 9,084,212
30,473 10,943,241
177,455 10,517,286

211,303,359
216,316,498
227,014,428

15,277,315 15,277,315 3,218,400


15,424,699 15,424,699 3,259,900
15,341,883 15,341,883 3,288,700

Apr.
May
Jun.

860,861 13,307,114
860,861 12,736,985
860,861 14,785,509

331,173
330,784
330,236

1,391,086
1,669,487
2,101,250

195,093 11,389,762
198,696 10,538,018
1,024,723 11,329,300

233,628,045
266,994,438
266,263,854

15,477,955 15,477,955 3,344,500


15,833,031 15,833,031 3,353,300
14,935,506 14,935,506 3,347,700

Jul.
Aug.
Sep.

860,861 13,025,644
13,175,041
13,670,277

330,307
329,724
328,656

1,325,172
1,372,275
1,848,490

1,024,723 10,345,442
1,024,723 10,448,319
958,064 10,535,067

263,111,306
275,185,713
278,634,861

14,715,919 14,715,919 3,288,800


14,869,986 14,869,986 3,321,500
18,000,586 18,000,586 3,305,500

Oct.
Nov.
Dec.

13,166,581
12,775,256
13,029,250

328,697
325,869
410,614

1,670,571
1,524,198
1,693,711

958,064 10,209,249
978,532 9,946,657
10,924,925

293,192,889
289,647,364
309,254,532

18,276,823 18,276,823 3,352,400


17,362,542 17,362,542 3,356,900

61,895,623 14,257,696

2003 Jan.
Feb.
Mar.

11,717,907
11,979,078
11,997,857

410,145
409,050
407,649

1,427,499
1,421,712
1,616,511

1,291 9,878,972
264 10,148,052
9,973,697

309,725,645
310,651,898
312,776,385

61,959,813 14,321,941
61,662,844 14,024,973
61,801,898 14,164,017

Apr.
May
Jun.

12,011,930
11,712,051
14,304,925

406,197
405,920
404,481

1,601,327
1,513,003
1,483,291

10,004,406
259,475 9,533,653
258,938 12,158,215

315,018,836
301,542,080
308,789,327

64,498,026 16,861,642
63,894,129 15,642,853
64,141,824 15,781,672

Jul.
Aug.
Sep.

11,696,757
12,963,983
12,214,795

403,872
402,911
401,166

1,568,040
2,023,520
2,029,833

259,132 9,465,713
255,204 10,282,348
254,687 9,529,109

334,728,358
348,846,141
358,290,670

63,890,417 15,530,298
64,129,276 15,770,455
63,773,438 15,414,795

Oct.
Nov.
Dec.

11,737,673
12,547,594
11,358,371

400,063
397,652
118,166

2,190,384
2,400,876
2,365,703

253,935
250,924

372,865,809
367,312,491
371,843,284

69,328,728 20,971,443
68,485,535 20,130,006
70,237,508 19,519,531

238

8,893,291
9,498,142
8,874,502

National Bank of Romania

Annual
Report
2003

Statistical Section

15. MONETARY BALANCE SHEET OF THE NATIONAL BANK OF ROMANIA


(continued)
Period
FOREIGN LIABILITIES (continued)
Short-term (continued)
Medium- and long-term
Borrowings SDR
Total
Borrowings
from
purchases
from
foreign
from IMF
foreign
banks
banks

- ROL millions; end of period DOMESTIC


Foreign LIABILITIES Currency
liabilities Total
issue
MIGA in ROL

Deposits of international financial


institutions
Total
IMF
IBRD

Bonds

1999
2000
2001
2002
2003

219,060

8,370,027 5,365,145
11,740,321 7,619,651
12,207,946

14,257,696

19,519,531

x
x
x
5,029
4,893

66,022
66,022

2000 Jan.
Feb.
Mar.

221,580
226,704
233,760

8,380,043 5,426,864
8,445,478 5,552,359
8,618,855 5,725,172

461,625 4,965,239
472,300 5,080,059
487,000 5,238,172

x
x
x

x
x
x

x
x
x

x
x
x

66,022
66,022
66,022

83,308,904 17,189,467
81,815,542 17,318,279
84,458,395 17,253,997

Apr.
May
Jun.

240,912 8,771,576 5,900,336


248,364 8,593,604 6,082,848
11,288,197 6,277,116

501,900 5,398,436
517,425 5,565,423
533,950 5,743,166

x
x
x

x
x
x

x
x
x

x
x
x

66,022
66,022
66,022

88,052,812 21,064,358
100,374,094 22,381,893
101,735,859 22,821,213

Jul.
Aug.
Sep.

11,178,174 6,433,471
11,604,896 6,751,765
12,040,259 7,103,269

547,250 5,886,221
574,325 6,177,440
604,225 6,499,044

x
x
x

x
x
x

x
x
x

x
x
x

66,022
66,022
66,022

104,580,941 23,690,631
97,930,636 22,829,200
105,364,992 24,193,593

Oct.
Nov.
Dec.

11,999,166 7,303,415
11,707,594 7,454,480
11,740,321 7,619,651

621,250 6,682,165
634,100 6,820,380
648,150 6,971,501

x
x
x

x
x
x

x
x
x

x
x
x

66,022
66,022
66,022

104,335,956 24,468,947
108,417,179 24,334,345
126,544,837 28,108,760

2001 Jan.
Feb.
Mar.

11,646,390 7,792,171
11,872,949 7,276,165
11,627,504 7,412,497

662,825 7,129,346
7,276,165
7,412,497

x
x
x

x
x
x

x
x
x

x
x
x

66,022
66,022
66,022

122,132,030 24,826,459
124,146,490 25,430,734
139,879,787 25,607,622

Apr.
May
Jun.

11,672,230 7,586,745
11,172,293 7,731,951
10,980,405 7,841,124

7,586,745
7,731,951
7,841,124

x
x
x

x
x
x

x
x
x

x
x
x

66,022
66,022
66,022

134,395,051 28,310,189
148,919,284 27,457,619
173,272,416 31,758,436

Jul.
Aug.
Sep.

10,964,042 7,965,625
11,341,362 8,078,832
11,274,026 8,192,039

7,965,625
8,078,832
8,192,039

x
x
x

x
x
x

x
x
x

x
x
x

66,022

172,697,028 31,745,549
172,901,200 31,912,177
178,712,404 34,925,288

Oct.
Nov.
Dec.

11,076,003
12,606,915
12,207,946

x
x
x

x
x
x

x
x
x

x
x
x

177,371,841 33,445,783
179,338,540 33,393,961
204,320,218 40,010,427

2002 Jan.
Feb.
Mar.

12,058,915
12,164,799
12,053,183

x
x
x

x
x
x

x
x
x

x
x
x

196,026,044 32,831,396
200,891,799 35,081,440
211,672,545 36,224,878

Apr.
May
Jun.

12,133,455
12,479,731
11,587,806

x
x
x

x
x
x

x
x
x

x
x
x

218,150,090 40,779,370
251,161,407 37,926,288
251,328,348 42,754,229

Jul.
Aug.
Sep.

11,427,119
11,548,486
14,695,086

x
x
x

x
x
x

x
x
x

x
x
x

248,395,387 42,646,223
260,315,727 44,410,489
260,634,275 46,466,968

Oct.
Nov.
Dec.

14,924,423
14,005,642
14,257,696

x
x
x

x
x
x
47,637,927 46,919,405 713,493

x
x
5,029

274,916,066 45,004,802
272,284,822 45,402,495
247,358,909 52,825,000

2003 Jan.
Feb.
Mar.

14,321,941
14,024,973
14,164,017

47,637,872 46,919,405 713,493


47,637,871 46,919,405 713,493
47,637,881 46,919,405 713,493

4,974
4,973
4,983

247,765,832 45,093,245
248,989,054 49,413,799
250,974,487 50,813,458

Apr.
May
Jun.

16,861,642
15,642,853
15,781,672

47,636,384 46,919,405 711,993


48,251,276 47,534,456 711,993
48,360,152 47,534,456 820,740

4,986
4,827
4,956

250,520,810 56,684,024
237,647,951 54,250,782
244,647,503 58,067,148

Jul.
Aug.
Sep.

15,530,298
15,770,455
15,414,795

48,360,119 47,534,456 820,740


48,358,821 47,534,456 819,240
48,358,643 47,534,456 819,240

4,923
5,125
4,947

270,837,941 59,292,843
284,716,865 63,719,161
294,517,232 63,821,698

Oct.
Nov.
Dec.

20,971,443
20,130,006
19,519,531

48,357,285 47,534,456 817,740


48,355,529 47,534,456 816,040
50,717,977 49,898,044 815,040

5,089
5,033
4,893

303,537,081 62,717,564
298,826,956 62,017,091
301,605,776 65,220,776

National Bank of Romania

456,375 4,908,770
x
x
x
648,150 6,971,501
x
x
x

x
x
x

47,637,927 46,919,405 713,493

50,717,977 49,898,044 815,040

83,867,747
126,544,837
204,320,218
247,358,909
301,605,776

18,676,376
28,108,760
40,010,427
52,825,000
65,220,776

239

Annual
Report
2003

Statistical Section

15. MONETARY BALANCE SHEET OF THE NATIONAL BANK OF ROMANIA


(continued)
Period
DOMESTIC LIABILITIES (continued)
Float
Funds for equity interest in:
Total
IMF
IBRD

1999
2000
2001
2002
2003

BIS

IFC

EBRD

349,675
509,492
681,544
798,669
880,805

Interbank
liabilities

Deposits of international financial


MIGA institutions
Total
IMF
IBRD

MIGA

4,069,643
4,546,898
4,988,046
5,344,143
5,689,798

3,185,324
3,185,324
3,185,324
3,185,324
3,185,324

286,934
500,280
666,899
878,510
987,696

177,209
251,675
306,726
325,200
483,760

48,576
68,989
84,080
89,144
86,735

21,925 20,990,274 20,808,086 179,447


31,138 27,621,304 27,248,922 368,490
63,473 41,387,513 40,872,032 510,737
67,296
x
x
x
65,478
x
x
x

2,741
3,892
4,744
x
x

33,795,155
48,533,212
82,527,095
136,691,782
162,096,503

2000 Jan.
Feb.
Mar.

4,076,622
4,090,812
4,110,350

3,185,324
3,185,324
3,185,324

287,534
288,753
290,432

179,248
183,393
189,101

49,135 353,204 22,177 20,990,305 20,808,086 179,447


50,272 360,380 22,690 20,990,369 20,808,086 179,447
51,836 370,261 23,396 20,989,957 20,808,086 178,947

2,772
2,836
2,924

35,338,405
33,169,148
35,513,399

Apr.
May
Jun.

4,161,062
4,178,698
4,395,105

3,185,324
3,182,324
3,185,324

292,134
293,907
487,237

194,887
200,915
207,332

53,422 411,183 24,112 20,990,047 20,808,086 178,947


55,075 421,619 24,858 27,430,476 27,248,922 178,447
56,834 432,727 25,651 27,621,518 27,248,922 369,390

3,014
3,107
3,206

34,648,224
37,395,598
34,762,919

Jul.
Aug.
Sep.

4,412,783
4,448,770
4,488,513

3,185,324
3,185,324
3,185,324

488,756
491,848
495,263

212,496
223,009
234,619

58,249 441,668 26,290 27,620,598 27,248,922 368,390


61,131 459,867 27,591 27,620,761 27,248,922 368,390
64,314 479,966 29,027 27,619,940 27,248,922 367,390

3,286
3,449
3,628

37,636,677
35,560,110
40,639,413

Oct.
Nov.
Dec.

4,511,143
4,528,224
293,505 4,546,898

3,185,324
3,185,324
3,185,324

497,208
498,675
500,280

241,230
246,220
251,675

66,126 491,410 29,845 27,620,043 27,248,922 367,390


67,494 500,048 30,463 27,620,120 27,248,922 367,390
68,989 509,492 31,138 27,621,304 27,248,922 368,490

3,731
3,808
3,892

36,944,144
35,770,703
48,533,212

2001 Jan.
Feb.
Mar.

4,566,405
4,584,547
4,601,396

3,185,324
3,185,324
3,185,324

501,956
503,515
504,963

257,374
262,674
267,596

70,551 519,357 31,843 27,620,892 27,248,922 367,990


72,004 528,532 32,498 27,620,474 27,248,922 367,490
73,353 537,053 33,107 27,620,550 27,248,922 367,490

3,980
4,062
4,138

42,721,738
45,069,418
59,315,005

Apr.
May
Jun.

4,684,542
4,702,486
4,872,003

3,185,324
3,185,324
3,185,324

506,813
508,355
653,761

273,886
279,128
283,069

75,077 609,556 33,886 27,619,248 27,248,922 366,090


76,514 618,631 34,534 37,129,393 36,758,986 366,090
77,595 625,454 46,800 37,273,951 36,758,986 510,587

4,236
4,317
4,378

51,132,494
51,371,039
62,467,623

Jul.
Aug.
Sep.

1,027 4,883,080
4,927,149
4,943,562

3,185,324
3,185,324
3,185,324

655,083
656,286
657,488

283,069
291,651
295,737

78,827 633,234 47,543 37,274,020 36,758,986 510,587


79,947 653,588 60,353 37,274,083 36,758,986 510,587
81,067 662,747 61,199 37,274,147 36,758,986 510,587

4,447
4,510
4,574

63,510,545
66,762,524
72,935,821

Oct.
Nov.
Dec.

4,963,094
4,980,135
4,988,046

3,185,324
3,185,324
3,185,324

659,058
660,534
666,899

301,077
306,095
306,726

82,531 672,800 62,304 37,272,629 36,758,986 508,987


83,907 680,932 63,343 37,274,457 36,758,986 510,737
84,080 681,544 63,473 41,387,513 40,872,032 510,737

4,656
4,734
4,744

69,124,187
70,075,392
82,527,095

2002 Jan.
Feb.
Mar.

5,007,558
5,020,117
5,036,542

3,185,324
3,185,324
3,185,324

668,690
669,956
670,834

312,425
312,425
319,249

85,642 690,825 64,652 41,347,956 40,834,037 509,087


86,746 700,180 65,486 41,386,013 40,872,032 509,087
87,512 707,558 66,065 41,385,649 40,872,032 509,087

4,832
4,894
4,530

81,750,357
86,153,068
95,038,091

Apr.
May
Jun.

75,069 5,104,278
137,750 5,116,023
5,332,943

3,185,324
3,185,324
3,185,324

672,537
672,805
878,440

324,666
325,520
325,520

88,997 765,568 67,186 41,383,246 40,872,032 507,437


89,231 775,781 67,362 44,203,603 43,689,382 509,187
89,082 787,327 67,250 44,409,401 43,689,382 714,993

3,777
5,034
5,026

95,161,417
100,968,893
108,142,994

Jul.
Aug.
Sep.

639,695 5,304,900
807,758 5,319,556
5,312,635

3,185,324
3,185,324
3,185,324

876,643
877,641
877,153

319,259
322,433
320,880

87,515 770,092 66,067 44,409,312 43,689,382 714,993


88,385 779,050 66,723 44,409,361 43,689,382 714,993
87,959 774,917 66,402 44,409,337 43,689,382 714,993

4,937
4,986
4,962

111,156,958
116,311,286
120,035,745

Oct.
Nov.
Dec.

13,093 5,332,585
14,631 5,335,887
14,563 5,344,143

3,185,324
3,185,324
3,185,324

878,584
878,721
878,510

325,433
325,869
325,200

89,207 786,693 67,344 44,409,408 43,689,382 714,993


89,327 789,211 67,435 44,407,915 43,689,382 713,493
89,144 798,669 67,296
x
x
x

5,033
5,040
x

126,125,863
128,950,379
136,691,782

2003 Jan.
Feb.
Mar.

5,337,829
235,563 5,336,561
5,341,928

3,185,324
3,185,324
3,185,324

877,382
877,354
877,562

321,608
321,520
322,181

88,159 798,803 66,553


88,135 797,693 66,535
88,316 801,874 66,671

x
x
x

x
x
x

x
x
x

x
x
x

138,726,425
138,612,200
140,415,989

Apr.
May
Jun.

5,397,959
5,370,911
2,755,046 5,508,885

3,185,324
3,185,324
3,185,324

877,638
874,410
988,975

322,423
312,153
320,482

88,382 857,471 66,721


85,567 848,861 64,596
87,850 859,934 66,320

x
x
x

x
x
x

x
x
x

x
x
x

136,679,478
131,215,927
127,125,696

Jul.
Aug.
Sep.

297,310 5,499,333
5,681,908
740,660 5,665,331

3,185,324
3,185,324
3,185,324

988,300
992,410
988,786

320,482
469,380
472,010

87,262 852,089 65,876


90,847 875,365 68,582
87,685 865,331 66,195

x
x
x

x
x
x

x
x
x

x
x
x

135,354,098
144,670,800
149,521,353

Oct.
Nov.
Dec.

189,555 5,710,696
5,710,505
5,689,798

3,185,324
3,185,324
3,185,324

991,681
990,528
987,696

486,080
489,190
483,760

90,211 889,298 68,102


89,205 888,916 67,342
86,735 880,805 65,478

x
x
x

x
x
x

x
x
x

x
x
x

155,774,814
155,301,678
162,096,503

240

264,020
293,505

14,563

- ROL millions; end of period -

National Bank of Romania

Annual
Report
2003

Statistical Section

15. MONETARY BALANCE SHEET OF THE NATIONAL BANK OF ROMANIA


(continued)
Period
DOMESTIC LIABILITIES (continued)
Government deposits
Capital accounts
Total
Other
General
Total
Statutory Reserve Profit
extrabuAccount
fund
fund
dgetary
of
funds
Treasury

1999
2000
2001
2002
2003

2,846,741

2,991,457 1,975,815
8,388,660 4,074,806
9,958,100 3,116,559
11,906,590 10,888,286

148,524
172,416
172,416
172,416
172,416

- ROL millions; end of period Other liabilities


Total
Net gains
from forex
assets and
liabilities
revaluation

Creditors
from
foreign
operations

Other

2,846,741
1,015,642
4,313,854
6,841,541
1,018,304

248,524
543,746
318,907
318,907
318,907

100,000
146,491
146,491
146,491
146,491

224,839

2,977,014
13,905,955
26,699,570
42,206,414
56,373,202

456,975
11,201,339
17,714,984
32,635,877
47,766,072

1,534,046
2,008,887
3,013,231
3,459,065
3,678,661

985,993
695,729
5,971,355
6,111,472
4,928,469

2000 Jan.
Feb.
Mar.

1,915,475
2,509,094
2,376,954

22,992
23,707

1,915,475
2,486,102
2,353,247

471,781 148,524 100,000


453,102 148,524 100,000
520,677 148,524 100,000

223,257
204,578
272,153

3,326,849
3,284,738
3,693,061

317,858
728,958
786,839

1,534,046
1,534,046
1,534,046

1,474,945
1,021,734
1,372,176

Apr.
May
Jun.

2,631,038
4,416,393
7,880,264

456,473
263,898
5,383,457

2,174,565
4,152,495
2,496,807

634,155 148,525 100,000


621,048 146,491 100,000
649,978 146,491 100,000

385,630
374,557
403,487

3,923,928
3,949,988
3,604,862

1,482,626
272,940
417,862

1,534,046
2,008,887
2,008,887

907,256
1,668,161
1,178,113

Jul.
Aug.
Sep.

6,277,141
2,328,055
2,361,125

4,326,523
29,294
69,803

1,950,618
2,298,761
2,291,322

772,468 146,491 100,000


770,442 146,491 100,000
764,385 146,491 100,000

525,977
523,951
517,894

4,170,643
4,373,298
5,298,023

532,982
1,459,486
2,794,407

2,008,887
2,008,887
2,008,887

1,628,774
904,925
494,729

Oct.
Nov.
Dec.

4,125,862
9,048,903
2,991,457

405,975
3,742,691
1,975,815

3,719,887
5,306,212
1,015,642

838,781 146,491 100,000


736,024 146,491 100,000
543,746 172,416 146,491

592,290 5,827,036
489,533 6,378,860
224,839 13,905,955

3,235,913
4,296,782
11,201,339

2,008,887
2,008,887
2,008,887

582,236
73,191
695,729

2001 Jan.
Feb.
Mar.

7,323,505
6,245,155
7,395,209

4,216,485
2,808,216
5,341,336

3,107,020
3,436,939
2,053,873

543,076 172,416 146,491


455,153 172,416 146,491
229,453 172,416 146,491

224,169 14,529,955
136,246 14,741,009
89,454 15,110,552

12,038,532
12,711,210
13,072,242

2,008,887
2,008,887
2,008,887

482,536
20,912
29,423

Apr.
May
Jun.

6,251,880 1,512,073
10,935,315 6,726,722
20,468,970 18,132,826

4,739,807
4,208,593
2,336,144

499,468 172,416 146,491


359,712 172,416 146,491
66,622 172,416 146,491

180,561 15,897,230
40,805 16,963,720
252,285 16,364,811

14,265,640
11,201,339
11,335,961

2,008,887
2,710,003
2,710,003

377,297
3,052,378
2,318,847

Jul.
Aug.
Sep.

16,876,778 10,156,824
12,010,063 8,118,398
8,207,871 3,648,090

6,719,954
3,891,665
4,559,781

295,209 172,416 146,491


23,698 18,110,820
350,291 172,416 146,491
669,198 20,365,495
918,739 172,416 146,491 1,237,646 21,344,454

13,148,303
15,071,432
16,085,389

2,710,003
2,710,003
2,710,003

2,252,514
2,584,060
2,549,062

Oct.
Nov.
Dec.

12,524,502
12,832,543
8,388,660

5,479,351
5,407,056
4,074,806

7,045,151 2,148,567 172,416 146,491 2,467,474 22,190,213


7,425,487 2,832,731 172,416 146,491 3,151,638 23,614,783
4,313,854
318,907 172,416 146,491
26,699,570

17,153,341
17,707,773
17,714,984

2,710,003
2,710,003
3,013,231

2,326,869
3,197,007
5,971,355

2002 Jan.
Feb.
Mar.

10,410,284
6,891,874
6,862,966

2,320,872
1,512,499
919,273

8,089,412 4,292,034 172,416 146,491 4,610,941


5,379,375 5,199,050 172,416 146,491 5,517,957
5,943,693 6,419,485 172,416 146,491 6,738,392

28,970,527
31,558,337
33,543,904

22,209,274
23,549,735
25,058,580

3,010,430
3,013,231
3,013,231

3,750,823
4,995,371
5,472,093

Apr.
May
Jun.

6,124,497
232,882
33,079,378 26,834,809
16,471,166 14,118,974

5,891,615 7,321,354 172,416 146,491 7,640,261


6,244,569 8,375,271 172,416 146,491 8,694,178
2,352,192 5,300,356 172,416 146,491 5,619,263

36,843,568
38,104,743
39,517,971

28,724,066
30,250,980
30,599,485

3,013,231
3,220,936
3,220,936

5,106,271
4,632,827
5,697,550

Jul.
Aug.
Sep.

13,881,576
17,918,773
14,387,982

4,623,745 9,257,831 6,230,602 172,416 146,491 6,549,509


5,956,292 11,962,481 7,027,017 172,416 146,491 7,345,924
5,845,949 8,542,033 7,753,324 172,416 146,491 8,072,231

36,587,325
38,165,521
37,774,932

27,668,410
29,316,040
28,582,505

3,220,936
3,220,936
3,220,936

5,697,979
5,628,545
5,971,491

Oct.
Nov.
Dec.

22,898,936 9,890,483 13,008,453 8,421,389 172,416 146,491 8,740,296 39,552,768


17,468,471 10,076,284 7,392,187 9,223,736 172,416 146,491 9,542,643 39,928,780
9,958,100 3,116,559 6,841,541
318,907 172,416 146,491
42,206,414

30,930,229
31,531,000
32,635,877

3,220,936
3,220,936
3,459,065

5,401,603
5,176,844
6,111,472

2003 Jan.
Feb.
Mar.

15,358,478
14,298,387
12,654,054

34,618,210
33,843,162
35,188,266

3,459,065
3,459,065
3,459,065

5,705,314
5,034,163
4,886,575

Apr.
May
Jun.

8,320,343
2,300,216
7,127,504

45,759,695
47,392,805
47,585,446

37,479,002
38,632,954
39,154,899

3,459,065
3,504,409
3,504,409

4,821,628
5,255,442
4,926,138

1,620,567 13,737,911
1,605,285 12,693,102
2,636,321 10,017,733
1,657,662
1,646,037
2,337,103

532,734 172,416 146,491


851,641 43,782,589
1,243,846 172,416 146,491 1,562,753 42,336,390
1,784,848 172,416 146,491 2,103,755 43,533,906

6,662,681 2,320,689 172,416 146,491 2,639,596


654,179 2,882,690 172,416 146,491 3,201,597
4,790,401 3,522,222 172,416 146,491 3,841,129

Jul.
Aug.
Sep.

28,294,295 11,422,309 16,871,986


27,436,132 11,479,877 15,956,255
30,258,285 14,456,098 15,802,187

4,128,128 172,416 146,491 4,447,035


5,015,055 172,416 146,491 5,333,962
6,068,288 172,416 146,491 6,387,195

46,228,190
48,223,919
50,578,193

37,313,094
39,797,568
42,457,127

3,504,409
3,504,409
3,504,409

5,410,687
4,921,942
4,616,657

Oct.
Nov.
Dec.

30,609,069 13,422,036 17,187,033


26,508,693 13,650,019 12,858,674
11,906,590 10,888,286 1,018,304

7,073,663 172,416 146,491 7,392,570 55,609,046


7,962,588 172,416 146,491 8,281,495 57,251,577
318,907 172,416 146,491
56,373,202

47,926,665
50,132,526
47,766,072

3,504,409
3,504,409
3,678,661

4,177,972
3,614,642
4,928,469

National Bank of Romania

241

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


- ROL millions; end of period Period

242

ASSETS

FOREIGN ASSETS
Convertible currencies
Total
Total
Cash
and
cheques

Deposits
with
foreign
banks

Equity
interest
in foreign
banks

Foreign
securities

Other

Non-convertible currencies
Total
Claims
Other
on
bilateral
payments
agreements
48

30,608
30,608

35,171
35,120

16,527
16,514
13
37,516
17,412 20,105

1999
2000
2001
2002
2003

182,177,628
232,673,620
352,146,442
478,192,131
617,367,026

22,842,698
40,130,891
50,966,334
39,897,804
35,464,253

22,842,650
40,100,283
50,931,163
39,881,277
35,426,737

1,313,524
1,898,750
4,713,303
4,384,635
5,536,683

19,207,107
34,246,394
42,202,401
30,511,316
23,886,105

1,654,318
2,442,530
2,923,213
3,486,666
4,074,259

250,924
416,776
957,057
555,551
504,051
588,196
697,208
801,452
757,087 1,172,604

2000 Jan.
Feb.
Mar.

184,835,045
185,630,098
193,373,152

20,188,570
21,113,920
23,318,503

20,188,442
21,113,792
23,318,375

1,466,185
1,249,765
1,264,028

16,327,826
17,525,413
19,550,654

1,689,177
1,644,283
1,752,866

279,181
257,347
289,263

426,073
436,984
461,564

128
128
128

Apr.
May
Jun.

196,070,956
201,084,338
205,844,746

22,655,390
26,761,623
29,189,217

22,655,258
26,761,623
29,189,217

1,318,155
1,808,320
1,504,762

18,854,181
21,934,585
24,694,555

1,782,188
1,949,247
2,063,878

333,482
296,961
474,917

367,252
772,510
451,104

132

Jul.
Aug.
Sep.

211,365,632
219,033,772
226,478,292

32,150,063
34,712,335
42,780,930

32,150,063
34,712,335
42,780,930

1,612,651
1,576,442
1,687,517

27,530,113
30,112,302
37,919,844

2,085,248
2,058,884
2,165,577

491,056
512,962
511,749

430,995
451,744
496,242

Oct.
Nov.
Dec.

228,154,727
222,769,097
232,673,620

43,765,226
41,981,324
40,130,891

43,735,127
41,950,597
40,100,283

1,649,316
1,714,012
1,898,750

38,669,144
36,674,670
34,246,394

2,239,388
2,287,222
2,442,530

539,515
737,563
957,057

637,764
537,130
555,551

30,100
30,728
30,608

30,099
30,728
30,608

2001 Jan.
Feb.
Mar.

241,833,326
249,464,389
261,279,130

41,018,442
42,501,722
41,173,898

40,987,179
42,470,071
41,141,815

1,903,575
2,172,912
1,973,115

34,578,273
35,779,153
34,718,193

2,481,810 1,466,701
2,515,784 1,446,662
2,305,842 1,610,170

556,820
555,560
534,495

31,263
31,651
32,083

31,263
31,651
32,083

Apr.
May
Jun.

269,116,806
269,876,161
280,200,316

44,779,536
39,549,034
39,989,654

44,746,820
39,516,079
39,956,384

2,208,552
2,004,926
2,321,307

37,250,398
32,595,330
33,290,470

2,589,341 1,698,849
999,681
2,360,572 1,418,267 1,136,983
2,623,586 1,095,748
625,273

32,716
32,955
33,270

32,716
32,955
33,270

Jul.
Aug.
Sep.

292,203,886
302,428,147
313,817,521

43,575,262
50,718,749
54,413,377

43,541,453
50,684,597
54,378,668

2,764,446
3,169,280
3,053,777

36,247,134
42,743,430
46,874,678

2,716,729 1,201,140
2,808,216 1,352,997
2,853,887
952,053

612,006
610,673
644,274

33,809
34,152
34,709

33,809
34,152
34,709

Oct.
Nov.
Dec.

325,359,596
335,403,665
352,146,442

53,317,130
55,942,879
50,966,334

53,282,200
55,907,617
50,931,163

2,865,921
3,305,265
4,713,303

46,038,103
48,133,958
42,202,401

2,891,526
2,905,422
2,923,213

834,315
769,045
504,051

652,334
793,926
588,196

34,930
35,262
35,171

34,930
35,262
35,120

2002 Jan.
Feb.
Mar.

355,321,128
361,687,490
375,452,140

52,809,873
50,523,614
47,510,570

52,774,745
50,487,532
47,474,479

3,712,167
3,587,782
3,418,847

44,903,109
42,730,251
39,730,526

2,941,078
2,984,562
3,022,922

654,765
646,420
673,541

563,626
538,517
628,642

35,128
36,082
36,091

35,128
35,267
35,315

815
776

Apr.
May
Jun.

385,338,720
393,458,403
405,242,429

41,131,238
43,682,760
44,738,283

41,094,653
43,646,230
44,701,860

3,215,653
3,363,139
4,281,723

33,511,761
35,344,201
35,625,118

3,105,780
3,161,572
3,254,419

625,285
636,174
650,395 1,126,923
752,079
788,522

36,585
36,529
36,423

35,842
35,831
35,772

743
699
651

Jul.
Aug.
Sep.

408,286,144
419,473,560
427,391,026

45,499,364
41,556,906
44,089,079

45,463,847
41,521,150
44,053,662

3,888,226
4,474,154
4,037,064

36,673,950
31,947,520
34,705,390

3,206,304
3,232,994
3,330,024

759,082
936,285
715,342 1,151,140
734,040 1,247,145

35,518
35,756
35,417

34,924
35,202
34,912

594
554
505

Oct.
Nov.
Dec.

438,728,356
451,276,807
478,192,131

38,692,389
39,753,579
39,897,804

38,657,088
39,718,238
39,881,277

3,934,602
3,199,330
4,384,635

29,735,789
30,823,612
30,511,316

3,379,187
709,709
3,383,725 1,408,445
3,486,666
697,208

897,801
903,125
801,452

35,301
35,341
16,527

35,301
35,341
16,514

13

2003 Jan.
Feb.
Mar.

478,636,327
486,268,460
493,673,354

36,443,542
38,201,404
35,573,572

36,408,687
38,166,227
35,538,040

3,222,299
3,298,533
3,704,434

27,896,488
29,683,706
26,032,258

3,517,627
3,466,520
3,483,532

777,111
995,162
798,713
918,754
915,242 1,402,574

34,855
35,178
35,533

16,240 18,615
16,409 18,769
16,596 18,937

Apr.
May
Jun.

495,749,608
503,790,987
518,290,665

32,297,359
38,817,402
41,155,089

32,261,379
38,782,179
41,118,718

4,124,694
4,077,232
4,127,269

22,713,881
29,142,515
31,246,720

3,554,527
3,611,544
3,682,449

787,616 1,080,661
824,259 1,126,629
867,842 1,194,439

35,980
35,223
36,370

16,876 19,103
16,485 18,738
16,917 19,453

Jul.
Aug.
Sep.

517,237,802
543,447,273
560,639,598

38,651,786
36,997,936
36,923,962

38,615,665
36,960,374
36,887,842

5,216,150
4,969,054
4,700,194

27,348,962
25,927,211
26,250,232

3,621,869 1,213,713 1,214,970


3,838,041
983,145 1,242,922
3,891,727
846,954 1,198,736

36,122
37,562
36,120

16,732 19,390
17,548 20,014
16,847 19,272

Oct.
Nov.
Dec.

581,834,096
594,027,378
617,367,026

34,899,042
39,488,933
35,464,253

34,861,119
39,451,095
35,426,737

4,568,704
3,757,200
5,536,683

24,101,002
29,582,977
23,886,105

4,010,576
4,045,808
4,074,259

37,924
37,838
37,516

17,678 20,246
17,668 20,170
17,412 20,105

917,408 1,263,429
862,919 1,202,192
757,087 1,172,604

National Bank of Romania

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
Period

- ROL millions; end of period DOMESTIC ASSETS


Vault
Total
cash

1999
2000
2001
2002
2003

159,334,930
192,542,729
301,180,108
438,294,327
581,902,773

1,273,958
2,322,949
4,320,045
7,194,139
7,197,050

2000 Jan.
Feb.
Mar.

164,646,475 1,445,963
164,516,178 1,134,706
170,054,649 1,152,219

Domestic credit
Total
Non-government credit
Total
In ROL
Total

88,405,741 57,719,485 24,444,938


106,725,267 75,007,107 30,410,835
156,248,570 118,254,451 47,533,320
222,522,654 178,727,969 66,728,798
331,611,895 302,879,375 135,040,418

Short-term credit
Total
Current
Total

18,781,531
25,193,508
39,904,461
50,424,056
72,964,441

17,535,185
24,535,825
39,030,128
49,252,162
71,692,186

Economic agents by
HouseOther 1)
majority ownership
holds
state-owned private
3,960,177 12,737,690
523,358
313,960
2,952,268 20,112,757 1,059,949
410,852
3,735,513 32,248,892 2,761,982
283,742
6,142,853 37,258,930 5,418,330
432,049
7,482,065 53,994,776 9,169,496 1,045,849

91,682,501
92,765,027
94,054,825

59,818,261
61,804,036
62,556,405

25,640,754 20,066,262 18,700,037


26,201,674 20,663,210 19,236,639
25,966,224 20,426,386 19,001,850

3,830,990 14,065,739
3,828,137 14,618,891
3,645,178 14,580,570

488,835
482,781
505,301

314,474
306,830
270,801

Apr.
May
Jun.

173,415,566 1,674,420 96,940,042


174,322,715 2,169,016 96,642,548
176,655,529 1,326,015 101,594,176

64,490,445
66,678,284
67,205,782

26,613,119 21,136,453 19,655,910


26,707,047 21,216,478 19,725,568
26,558,539 21,117,501 19,682,586

3,378,661 15,474,113
3,384,823 15,482,736
3,131,610 15,729,018

512,954
524,744
555,660

290,181
333,265
266,297

Jul.
Aug.
Sep.

179,215,569 1,793,560 101,409,129


184,321,437 1,435,721 105,951,943
183,697,362 1,398,474 102,867,352

67,570,049
69,907,872
73,162,981

27,598,482 22,117,454 20,659,158


28,012,355 22,463,068 21,050,985
30,111,623 24,470,635 23,176,559

3,197,583 16,548,520
3,105,560 17,036,744
3,003,487 18,951,087

598,571
654,184
725,787

314,484
254,498
496,199

Oct.
Nov.
Dec.

184,389,501 1,920,345 107,388,473


180,787,773 1,485,614 107,524,740
192,542,729 2,322,949 106,725,267

74,275,178
70,783,117
75,007,107

31,271,544 26,344,536 25,313,783


30,445,392 25,447,959 24,720,244
30,410,835 25,193,508 24,535,825

3,077,514 20,874,759
2,953,558 20,355,096
2,952,268 20,112,757

855,010
960,674
1,059,949

506,500
450,916
410,852

2001 Jan.
Feb.
Mar.

200,814,883 1,804,230 116,734,261


206,962,667 1,631,737 121,118,348
220,105,232 1,787,704 117,290,295

78,794,010
82,010,760
84,427,654

32,169,717 26,908,927 26,107,638


32,974,856 27,685,840 27,010,613
33,398,632 27,944,472 27,444,807

3,169,313 21,441,506
2,882,107 22,572,710
2,764,979 23,323,347

1,090,973
1,183,075
1,288,289

405,846
372,721
68,192

Apr.
May
Jun.

224,337,270 2,451,824 128,706,776


230,327,127 1,949,296 134,840,968
240,210,662 2,060,173 129,170,456

88,397,980
90,381,033
92,884,785

35,116,241 29,574,271 28,900,486


36,197,001 30,466,382 29,730,799
37,236,219 31,465,365 30,627,582

3,197,444 24,257,772
3,481,531 24,572,437
3,804,993 25,130,297

1,340,774
1,601,664
1,579,780

104,497
75,167
112,512

Jul.
Aug.
Sep.

248,628,624 2,365,856 135,681,759 97,206,053


251,709,398 2,027,955 135,754,462 99,369,058
259,404,144 2,227,482 136,009,485 103,230,142

39,072,200 33,080,627 32,258,368


39,227,712 32,950,028 32,133,926
41,898,485 35,353,400 34,540,908

4,442,718 25,903,955
4,220,860 25,750,259
4,197,336 28,032,729

1,778,345
1,987,456
2,124,990

133,350
175,351
185,853

Oct.
Nov.
Dec.

272,042,466 2,556,771 152,523,351 107,390,509


279,460,786 2,258,786 155,190,696 111,190,299
301,180,108 4,320,045 156,248,570 118,254,451

43,581,828 36,948,498 36,201,137


45,007,849 37,997,552 37,068,377
47,533,320 39,904,461 39,030,128

4,448,933 29,094,373
4,140,283 30,104,712
3,735,513 32,248,892

2,475,972
2,641,560
2,761,982

181,860
181,822
283,742

2002 Jan.
Feb.
Mar.

302,511,255 2,752,509 162,946,396 121,591,281


311,163,877 2,613,022 165,334,840 124,163,563
327,941,570 2,749,753 167,974,853 130,236,652

48,758,821 40,998,682 40,111,301


49,897,663 42,033,640 40,923,295
51,609,789 43,586,141 42,492,155

3,713,058 33,400,947
3,733,182 34,115,440
3,695,425 35,583,127

2,761,646
2,815,880
2,983,405

235,650
258,793
230,198

Apr.
May
Jun.

344,207,482 3,041,830 182,420,068 140,430,653


349,775,644 2,876,281 184,078,381 143,072,372
360,504,147 3,080,055 187,415,968 147,266,724

53,976,146 45,541,224 44,418,891


51,203,515 42,555,121 41,434,653
52,780,790 43,653,236 42,386,085

4,383,409 36,705,824
4,142,530 33,621,077
4,090,219 33,915,811

3,154,791
3,448,948
4,018,301

174,868
222,097
361,755

Jul.
Aug.
Sep.

362,786,779 3,483,513 189,889,988 145,975,042


377,916,655 3,098,982 196,653,520 150,833,775
383,301,947 4,076,342 195,700,363 157,002,679

53,233,089 43,310,269 41,995,571


54,617,143 44,119,126 42,715,589
58,079,313 46,610,899 45,274,757

4,098,551 33,531,772
4,146,493 33,898,804
4,156,374 36,120,326

4,085,501
4,394,375
4,784,141

279,746
275,917
213,917

Oct.
Nov.
Dec.

400,035,967 3,627,122 206,172,610 164,935,211


411,523,228 3,660,122 214,047,947 171,493,585
438,294,327 7,194,139 222,522,654 178,727,969

62,206,653 49,205,870 47,954,753


66,055,394 51,664,841 50,373,338
66,728,798 50,424,056 49,252,162

4,794,990 37,657,602
5,347,717 39,532,935
6,142,853 37,258,930

5,181,291
5,248,761
5,418,330

320,869
243,926
432,049

2003 Jan.
Feb.
Mar.

442,192,785 3,498,617 228,503,851 183,747,526


448,067,055 3,587,380 234,509,221 188,484,686
458,099,782 4,899,319 241,843,054 196,819,146

70,980,035 53,808,223 52,635,823


73,213,618 54,485,362 53,034,321
77,108,949 56,684,976 55,092,420

4,970,872 41,882,164
6,579,903 40,835,716
6,930,375 42,242,160

5,371,183
5,208,609
5,462,333

411,603
410,094
457,553

Apr.
May
Jun.

463,452,249 5,061,628 247,776,589 205,602,909


464,973,585 3,986,799 257,260,048 216,769,656
477,135,577 5,483,571 271,537,765 223,525,161

81,246,724 58,667,593 56,694,991


88,830,521 61,959,781 59,462,483
95,117,789 64,534,857 62,370,165

7,241,673 43,544,449
7,272,171 45,176,842
8,311,234 46,625,727

5,445,539
6,578,881
6,841,193

463,329
434,590
592,010

Jul.
Aug.
Sep.

478,586,015 4,783,866 266,223,117 230,683,986 99,715,943 64,131,063 62,582,627


506,449,338 5,170,719 279,966,490 246,429,771 106,127,500 64,774,959 63,040,660
523,715,636 5,635,482 291,649,075 260,309,839 114,040,884 69,050,074 67,189,482

8,082,564 46,110,095
7,670,123 46,760,326
7,514,968 49,137,458

7,802,495
8,012,074
9,685,065

587,473
598,137
851,992

Oct.
546,935,053 4,661,573 303,906,849 274,894,236 120,555,603 71,664,978 70,092,519
Nov.
554,538,445 4,705,953 314,646,750 287,226,148 127,796,559 73,585,736 71,942,113
Dec.
581,902,773 7,197,050 331,611,895 302,879,375 135,040,418 72,964,441 71,692,186
1) Insurance companies included.

National Bank of Romania

7,937,019 50,842,491 10,409,636


903,373
7,239,099 54,708,147 9,070,412
924,455
7,482,065 53,994,776 9,169,496 1,045,849

243

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
Period

244

- ROL millions; end of period -

1999
2000
2001
2002
2003

DOMESTIC ASSETS (continued)


Domestic credit (continued)
Non-government credit (continued)
In ROL (continued)
Short-term credit (continued)
Overdue
Economic agents by
Total
HouseOther 1)
majority ownership
holds
state-owned private
1,246,345
287,461
884,972
57,384 16,528
657,683
112,615
469,650
19,619 55,798
874,332
39,279
691,025
86,585 57,444
1,171,894
20,831
953,772
184,250 13,040
1,272,255
45,403 1,002,376
209,511 14,964

2000 Jan.
Feb.
Mar.

1,366,224
1,426,571
1,424,537

308,532
981,939
312,898
990,589
315,018 1,027,618

58,370
58,317
57,788

Apr.
May
Jun.

1,480,543
1,490,910
1,434,915

291,939 1,084,223
270,436 1,146,843
247,093 1,117,644

Jul.
Aug.
Sep.

1,458,296
1,412,083
1,294,076

Oct.
Nov.
Dec.

Medium-term credit
Total
Current
Total

Economic agents by
HouseOther 1)
majority ownership
holds
state-owned private
771,537
1,781,667
947,436
91,365
721,404
1,882,327
1,398,401
71,643
530,735
2,849,596
2,507,724
371,345
1,590,733
4,545,144
7,506,990
338,506
5,257,205
9,212,139
40,363,015 1,467,285

3,997,794
4,110,294
6,316,918
14,039,823
56,532,560

3,592,005
4,073,776
6,259,400
13,981,372
56,299,644

17,383
64,767
24,112

3,947,820
3,925,969
3,943,292

3,534,330
3,510,651
3,472,414

783,963
786,655
769,635

1,731,380
1,732,471
1,724,617

923,861
896,662
880,154

95,126
94,863
98,007

57,495
44,952
44,262

46,887
28,679
25,916

3,890,545
3,924,226
3,845,405

3,420,586
3,462,044
3,406,526

734,754
716,321
696,127

1,698,215
1,742,548
1,688,713

893,529
911,944
935,084

94,088
91,232
86,602

264,349 1,120,926
257,871 1,086,160
223,216 1,009,165

49,438
49,014
44,604

23,583
19,038
17,091

3,891,497
3,986,051
4,066,458

3,467,897
3,572,199
3,643,119

682,771
711,513
694,351

1,726,181
1,752,676
1,759,495

964,586
1,022,435
1,091,753

94,359
85,575
97,519

1,030,754
727,715
657,683

158,127
134,249
112,615

827,123
560,416
469,650

40,961
28,405
19,619

4,543
4,645
55,798

3,841,016
3,904,874
4,110,294

3,763,032
3,861,029
4,073,776

710,728
739,364
721,404

1,810,236
1,790,214
1,882,327

1,168,255
1,255,384
1,398,401

73,812
76,066
71,643

2001 Jan.
Feb.
Mar.

801,289
675,227
499,664

127,863
74,857
52,302

597,403
542,869
371,840

20,124
23,495
22,753

55,899
34,005
52,769

4,162,830
4,187,389
4,338,175

4,123,782
4,141,686
4,292,068

692,135
680,098
662,899

1,918,287
1,921,068
1,798,434

1,445,704
1,465,363
1,517,917

67,656
75,157
312,819

Apr.
May
Jun.

673,785
735,583
837,783

53,346
55,878
47,038

500,103
619,464
679,784

85,495
29,985
43,207

34,841
30,257
67,754

4,419,607
4,590,894
4,604,449

4,375,664
4,551,172
4,552,796

649,704
660,672
628,876

1,822,189
1,930,957
1,908,241

1,555,438
1,609,652
1,657,480

348,333
349,891
358,199

Jul.
Aug.
Sep.

822,259
816,102
812,492

45,180
34,400
46,307

704,398
703,620
661,224

38,102
44,025
68,605

34,578
34,057
36,357

4,800,557
5,053,975
5,296,234

4,753,878
5,010,560
5,247,038

653,652
718,243
725,206

1,980,917
2,064,916
2,178,994

1,752,684
1,868,160
1,981,325

366,625
359,240
361,514

Oct.
Nov.
Dec.

747,361
929,175
874,332

61,499
70,180
39,279

580,905
741,954
691,025

73,426
74,815
86,585

31,530
42,225
57,444

5,372,155
5,717,170
6,316,918

5,324,622
5,675,751
6,259,400

451,119
493,133
530,735

2,379,527
2,515,718
2,849,596

2,128,523
2,300,097
2,507,724

365,453
366,803
371,345

2002 Jan.
Feb.
Mar.

887,380
1,110,345
1,093,987

31,816
44,350
34,294

749,132
952,247
960,947

76,884
82,160
89,268

29,548
31,588
9,477

6,438,484
6,506,176
6,609,902

6,405,360
6,468,241
6,572,713

505,886
480,918
752,153

2,929,336
2,959,289
3,027,900

2,601,415
2,667,987
2,728,079

368,723
360,047
64,582

Apr.
May
Jun.

1,122,333
1,120,468
1,267,151

71,605
937,727
17,676
976,914
40,750 1,073,979

99,610
113,669
137,566

13,391
12,208
14,856

6,951,822
7,105,843
7,518,846

6,917,633
7,052,479
7,447,388

756,008
742,443
718,079

3,073,741
3,054,371
3,357,183

2,955,314
3,120,089
3,265,547

132,570
135,576
106,578

Jul.
Aug.
Sep.

1,314,698
1,403,537
1,336,141

21,837 1,131,877
34,291 1,199,635
11,703 1,141,872

143,843
153,769
171,674

17,141
15,842
10,892

8,240,182
8,741,303
9,533,517

8,171,054
8,678,686
9,459,851

711,853
766,579
1,005,944

3,782,862
3,835,148
3,874,010

3,554,113
3,909,652
4,449,573

122,226
167,307
130,324

Oct.
Nov.
Dec.

1,251,117
1,291,503
1,171,894

7,170 1,068,967
21,772 1,086,972
20,831
953,772

164,564
170,589
184,250

10,416 10,962,714
12,169 12,271,087
13,040 14,039,823

10,900,766
12,202,056
13,981,372

1,327,362
1,269,387
1,590,733

4,073,207
4,428,194
4,545,144

5,298,915
6,242,928
7,506,990

201,282
261,547
338,506

2003 Jan.
Feb.
Mar.

1,172,400
1,451,041
1,592,557

5,477
976,284
12,081 1,231,864
20,238 1,357,065

176,412
179,229
172,600

14,228 14,954,513
27,868 16,483,425
42,655 18,104,126

14,891,840
16,408,466
18,012,511

1,595,886
1,609,128
1,449,683

4,696,788
4,819,173
4,982,522

8,242,478
9,597,225
11,149,593

356,688
382,940
430,713

Apr.
May
Jun.

1,972,603
2,497,298
2,164,692

39,823 1,733,701
195,605 2,035,413
33,621 1,873,764

175,920
239,293
228,972

23,158 20,183,965
26,988 24,323,443
28,335 27,764,734

20,077,427
24,147,348
27,573,682

1,110,541
1,138,500
1,336,929

5,308,916
5,975,545
6,468,077

12,894,175
16,215,479
19,036,344

763,795
817,825
732,332

Jul.
Aug.
Sep.

1,548,435
1,734,299
1,860,591

33,476 1,250,448
36,345 1,433,786
39,795 1,555,169

226,014
225,732
228,842

38,497 32,582,850
38,435 37,862,656
36,786 41,186,588

32,386,974
37,640,416
40,958,881

1,921,037
3,309,540
3,696,472

6,878,597
7,202,493
7,733,501

22,810,428
776,913
26,338,769
789,614
28,420,662 1,108,246

Oct. 1,572,459
46,017 1,273,774
Nov. 1,643,623
53,516 1,326,635
Dec. 1,272,255
45,403 1,002,376
1) Insurance companies included.

219,158
228,987
209,511

33,510 44,734,968
34,485 49,680,138
14,964 56,532,560

44,516,946
49,434,552
56,299,644

3,670,276
4,591,172
5,257,205

8,153,629
8,131,073
9,212,139

31,627,735 1,065,306
35,564,180 1,148,126
40,363,015 1,467,285

National Bank of Romania

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
Period

1999
2000
2001
2002
2003

- ROL millions; end of period DOMESTIC ASSETS (continued)


Domestic credit (continued)
Non-government credit (continued)
In ROL (continued)
Medium-term credit (continued)
Long-term credit
Overdue
Total
Current
Economic agents by
Economic agents by
Total
HouseOther 1)
Total
HouseOther 1)
majority ownership
majority ownership
holds
holds
state-owned private
state-owned private
405,789
30,164
341,332
22,565
11,729
1,665,613
1,188,314
3,396
139,287
1,043,172
2,458
36,517
135
19,866
15,690
827
1,107,033
1,103,599
401
78,944
1,020,658
3,597
57,518
18,269
21,276
17,787
186
1,311,941
1,310,842

68,743
1,240,559
1,541
58,451
98
26,330
31,713
310
2,264,920
2,262,461

85,996
2,041,393
135,072
232,916
846
58,095
168,961
5,014
5,543,417
5,541,008
1,152,741
958,583
3,146,427
283,256

2000 Jan.
Feb.
Mar.

413,490
415,317
470,877

32,250
33,744
76,674

346,434
345,128
359,401

23,470
24,051
22,596

11,337
12,394
12,206

1,626,672
1,612,495
1,596,546

1,153,749
1,138,526
1,122,183

3,241
3,204
3,120

120,335
118,792
111,272

1,027,731
1,014,128
1,005,415

2,442
2,402
2,375

Apr.
May
Jun.

469,959
462,182
438,879

75,914
79,886
44,287

357,680
346,747
358,428

23,716
23,661
23,586

12,649
11,887
12,579

1,586,121
1,566,343
1,595,633

1,110,961
1,093,659
1,089,218

3,101
3,079
550

109,074
105,373
110,139

996,493
982,932
976,276

2,293
2,276
2,253

Jul.
Aug.
Sep.

423,600
413,852
423,339

36,586
28,606
25,891

349,606
347,349
357,745

24,280
24,468
24,562

13,128
13,429
15,141

1,589,532
1,563,235
1,574,530

1,071,248
1,078,224
1,088,749

529
500
479

95,237
96,272
97,211

973,309
979,304
988,847

2,173
2,148
2,213

Oct.
Nov.
Dec.

77,984
43,845
36,517

977
159
135

53,195
24,557
19,866

22,496
18,276
15,690

1,316
854
827

1,085,992
1,092,559
1,107,033

1,079,001
1,087,397
1,103,599

450
427
401

72,631
73,615
78,944

1,003,730
1,010,466
1,020,658

2,189
2,890
3,597

2001 Jan.
Feb.
Mar.

39,048
45,703
46,107

322
2,540
3,593

22,491
25,298
25,487

15,469
17,464
16,627

766
401
400

1,097,959
1,101,627
1,115,986

1,094,503
1,098,315
1,114,773

380
358
339

81,308
81,946
91,652

1,010,060
1,013,443
1,020,787

2,755
2,569
1,995

Apr.
May
Jun.

43,943
39,722
51,653

442
294
15,803

25,247
21,386
17,394

17,907
17,752
18,072

346
291
384

1,122,364
1,139,725
1,166,405

1,121,046
1,138,460
1,164,948

339
339
324

93,611
98,322
105,735

1,025,193
1,038,009
1,057,108

1,904
1,790
1,780

Jul.
Aug.
Sep.

46,679
43,415
49,196

3,729
3,783
8,383

25,078
21,800
21,003

17,486
17,393
19,377

387
437
432

1,191,016
1,223,710
1,248,851

1,189,629
1,222,505
1,247,345

324

108,586
112,564
110,865

1,078,949
1,107,973
1,134,811

1,770
1,969
1,669

Oct.
Nov.
Dec.

47,533
41,419
57,518

11,900
5,547
18,269

17,049
17,515
21,276

18,010
18,021
17,787

575
336
186

1,261,174
1,293,127
1,311,941

1,260,093
1,291,980
1,310,842

83,695
81,197
68,743

1,174,753
1,209,008
1,240,559

1,645
1,775
1,541

2002 Jan.
Feb.
Mar.

33,125
37,935
37,189

533
331
239

16,794
18,597
17,925

15,594
18,807
18,964

204
200
62

1,321,655
1,357,847
1,413,745

1,320,457
1,356,430
1,411,913

64,972
65,386
71,601

1,254,085
1,289,652
1,338,928

1,400
1,392
1,383

Apr.
May
Jun.

34,188
53,364
71,457

291
689
8,937

15,063
31,887
36,591

18,755
20,502
25,777

79
286
152

1,483,101
1,542,552
1,608,709

1,481,377
1,540,683
1,606,392

62,228
65,284
66,957

1,417,776
1,474,079
1,538,139

1,374
1,320
1,296

Jul.
Aug.
Sep.

69,128
62,616
73,666

123
38
162

44,574
34,816
42,530

24,124
27,362
29,798

307
400
1,175

1,682,638
1,756,715
1,934,898

1,679,654
1,754,514
1,932,263

66,769
68,437
70,759

1,611,632
1,684,620
1,784,194

1,253
1,457
77,310

Oct.
Nov.
Dec.

61,948
69,031
58,451

100
91
98

32,922
35,839
26,330

27,989
32,787
31,713

937
315
310

2,038,068
2,119,466
2,264,920

2,035,735
2,117,051
2,262,461

75,698
77,718
85,996

1,886,977
1,965,621
2,041,393

73,060
73,712
135,072

2003 Jan.
Feb.
Mar.

62,674
74,958
91,615

997
148
4,464

25,309
29,705
38,941

35,985
44,864
47,983

382
241
227

2,217,298
2,244,831
2,319,846

2,214,596
2,242,609
2,317,782

6,220

88,036
100,016
101,919

2,034,422
2,051,662
2,098,496

92,139
90,930
111,147

Apr.
May
Jun.

106,537
176,096
191,053

73
511
479

50,539
55,368
50,922

55,287
118,492
138,163

638
1,724
1,488

2,395,166
2,547,297
2,818,198

2,391,700
2,542,866
2,815,982

6,219
6,233
6,252

103,203
89,936
187,730

2,215,554
2,390,206
2,589,391

66,723
56,491
32,610

Jul.
Aug.
Sep.

195,876
222,240
227,707

361
1,936
1,063

59,526
63,787
68,262

133,579
154,209
154,338

2,410
2,307
4,044

3,002,030
3,489,885
3,804,222

3,000,071
3,487,459
3,798,116

6,849
351,296
512,949

226,475
240,783
275,777

2,733,789
2,810,278
2,921,519

32,959
85,102
87,870

Oct.
218,022
1,245
Nov.
245,586
1,831
Dec.
232,916
846
1) Insurance companies included.

63,128
57,644
58,095

150,425
182,063
168,961

3,223
4,049
5,014

4,155,656
4,530,685
5,543,417

4,152,745
4,527,987
5,541,008

512,949
673,349
1,152,741

513,570
646,887
958,583

3,019,078
3,089,416
3,146,427

107,148
118,335
283,256

National Bank of Romania

245

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
- ROL millions; end of period Period
DOMESTIC ASSETS (continued)
Domestic credit (continued)
Non-government credit (continued)
In ROL (continued)
Convertible currency credit
Long-term credit (continued)
Total
Short-term credit
Overdue
Total
Current
Economic agents by
Economic agents by
Total
HouseOther 1)
Total
HouseOther 1)
majority ownership
majority ownership
holds
holds
state-owned private
state-owned private
1999
477,299
4,360
19,268
5,357 448,313 33,274,548 19,433,275 14,938,127
2,377,059 12,130,449
61,289
369,329
2000
3,434

1,900
1,534
0 44,596,272 28,620,776 27,801,721
4,932,009 21,414,860
65,828 1,389,024
2001
1,099

3
1,088
8 70,721,131 43,962,561 41,646,848
8,571,042 31,330,480
217,246 1,528,080
2002
2,459

72
1,779
608 111,999,171 68,267,161 66,869,396
8,846,356 54,302,518
671,504 3,049,017
2003
2,410

431
1,979
167,838,957 77,025,602 75,126,238
5,348,112 64,425,416
331,475 5,021,236
2000 Jan.
Feb.
Mar.

472,924
473,969
474,363

4,360
3,221
3,221

15,521
17,458
18,428

4,730 448,313
4,977 448,313
4,402 448,313

34,177,507
35,602,362
36,590,181

20,227,715
21,230,726
22,002,861

15,592,959
16,334,801
16,957,774

3,152,077 11,712,539
3,566,651 12,314,791
3,420,528 13,125,725

91,529
98,379
59,182

636,814
354,981
352,340

Apr.
May
Jun.

475,161
472,684
506,415

3,219
3,219
3,219

19,222
16,675
16,933

4,406 448,313
4,477 448,313
4,003 482,260

37,877,326
39,971,237
40,647,244

22,994,887
24,650,145
24,883,608

18,018,330
19,640,678
19,792,808

4,043,276 13,547,963
4,661,940 14,493,161
4,308,286 14,925,275

63,698
92,177
104,706

363,393
393,399
454,542

Jul.
Aug.
Sep.

518,284
485,012
485,782

3,219
3,219
3,219

29,009
29,800
30,603

3,796 482,260
3,679 448,313
3,646 448,313

39,971,567
41,895,517
43,051,357

23,523,678
24,584,766
25,275,838

18,297,616
18,930,657
19,672,240

3,234,915 14,453,303
3,346,494 14,998,475
3,975,220 15,116,533

60,234
70,313
71,789

549,164
515,375
508,698

Oct.
Nov.
Dec.

6,991
5,162
3,434

10

4,023
3,052
1,900

2,958
2,110
1,534

43,003,635
40,337,725
44,596,272

26,550,283
24,266,050
28,620,776

21,203,187
23,489,631
27,801,721

4,246,002 16,382,092
4,538,420 17,963,833
4,932,009 21,414,860

88,003
487,090
80,973
906,405
65,828 1,389,024

2001 Jan.
Feb.
Mar.

3,456
3,312
1,213

1,896
1,896
1

1,560
1,414
1,212

0
1

46,624,293
49,035,904
51,029,022

30,500,228
32,808,598
34,287,255

29,631,453
31,751,720
32,374,327

7,391,664 20,711,808
7,736,282 22,463,767
7,340,907 23,694,032

68,363 1,459,617
82,232 1,469,439
87,778 1,251,610

Apr.
May
Jun.

1,318
1,265
1,457

1
0
1

1,316
1,265
1,456

53,281,738
54,184,032
55,648,566

35,356,500
35,798,534
36,842,200

33,451,895
33,852,785
34,841,251

6,788,390 25,273,807
6,435,981 25,328,366
6,343,916 26,650,557

63,159 1,326,539
108,284 1,980,153
96,712 1,750,066

Jul.
Aug.
Sep.

1,386
1,204
1,506

3
0
2

1,384
1,204
1,504

58,133,854
60,141,346
61,331,656

38,180,623
39,461,181
39,771,932

36,054,987
37,209,056
37,567,506

6,648,661 27,530,006
6,430,470 28,868,630
6,501,998 29,280,800

114,046 1,762,274
135,997 1,773,959
153,742 1,630,966

Oct.
Nov.
Dec.

1,081
1,148
1,099

2
5
3

1,071
1,134
1,088

8
8
8

63,808,681
66,182,450
70,721,131

41,661,418
42,321,334
43,962,561

39,428,199
39,760,135
41,646,848

6,276,154 31,368,304
5,866,290 32,176,610
8,571,042 31,330,480

194,904 1,588,837
200,523 1,516,713
217,246 1,528,080

2002 Jan.
Feb.
Mar.

1,198
1,418
1,832

4
16
22

1,172
1,380
1,242

22
22
568

72,832,460
74,265,900
78,626,863

45,106,791
45,225,387
48,256,922

42,836,223
43,715,706
46,780,672

8,386,818 32,749,749
8,526,267 33,623,369
8,963,691 35,903,384

242,233 1,457,422
271,626 1,294,445
290,701 1,622,897

Apr.
May
Jun.

1,723
1,869
2,317

3
19
42

1,166
1,295
1,654

554
554
622

86,454,506
91,868,856
94,485,933

52,251,317
55,979,138
57,503,268

50,714,886
54,417,231
55,837,720

9,413,134 39,139,584
9,462,865 42,913,678
9,646,836 44,056,837

281,420 1,880,747
260,715 1,779,973
269,437 1,864,609

Jul.
Aug.
Sep.

2,984
2,200
2,635

798
12
16

1,570
1,650
2,139

616
538
512

92,741,953
96,216,632
98,923,366

54,960,167
56,559,759
63,185,281

53,459,646
55,024,288
61,532,853

9,033,089 42,108,636
8,706,169 44,058,655
9,659,370 49,805,760

339,806 1,978,115
287,729 1,971,735
339,851 1,727,873

Oct.
Nov.
Dec.

2,333
2,414
2,459

11
14
72

1,714
1,795
1,779

608 102,728,558
605 105,438,191
608 111,999,171

65,164,206
65,096,259
68,267,161

63,623,890
63,580,290
66,869,396

9,682,269 50,960,247
8,732,837 51,892,412
8,846,356 54,302,518

617,288 2,364,086
451,995 2,503,045
671,504 3,049,017

2003 Jan.
Feb.
Mar.

2,702
2,223
2,064

74
67
47

2,025
2,156
2,017

602 112,767,491
115,271,068
119,710,197

67,598,728
68,961,232
69,835,773

65,996,697
67,226,235
68,181,959

7,409,388 54,842,314
7,203,605 56,461,939
5,819,822 57,904,302

647,588 3,097,407
660,156 2,900,534
666,277 3,791,557

Apr.
May
Jun.

3,466
4,431
2,216

1,357
2,123
13

2,110
2,307
2,203

124,356,185
127,939,135
128,407,372

72,111,789
72,621,959
69,243,495

70,191,601
70,733,270
67,440,827

6,449,882 58,758,096
6,328,295 58,213,811
6,174,124 56,951,203

785,204 4,198,418
769,988 5,421,176
842,699 3,472,801

Jul.
Aug.
Sep.

1,959
2,426
6,106

18
15
3,723

1,942
2,411
2,383

130,968,043
140,302,271
146,268,955

68,746,316
71,963,683
74,666,206

66,804,178
70,021,240
72,439,074

5,091,357 56,162,558 2,063,805 3,486,458


5,555,371 59,338,535 1,180,659 3,946,675
4,957,693 62,012,202 1,161,815 4,307,365

Oct.
2,911

Nov.
2,698

Dec.
2,410

1) Insurance companies included.

822
53
431

2,089
2,645
1,979

154,338,633
159,429,589
167,838,957

77,671,646
75,726,157
77,025,602

75,648,143
73,777,282
75,126,238

5,705,970 64,222,830 1,268,061 4,451,282


5,921,624 62,877,244
741,656 4,236,758
5,348,112 64,425,416
331,475 5,021,236

246

National Bank of Romania

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
- ROL millions; end of period Period
DOMESTIC ASSETS (continued)
Domestic credit (continued)
Non-government credit (continued)
Convertible currency credit (continued)
Short-term credit (continued)
Medium-term credit
Overdue
Total
Current
Economic agents by
Economic agents by
Total
HouseOther 1)
Total
HouseOther 1)
majority ownership
majority ownership
holds
holds
state-owned private
state-owned private
1999
4,495,149
218,107 4,257,714
15,127
4,201
9,397,027
7,816,961
878,327
6,472,568
214,208
251,858
2000
819,055
13,775
801,120
4,160

10,682,997
10,422,850
1,459,295
8,092,474
582,881
288,201
2001
2,315,713
30,016 2,279,574
5,637
486
18,368,835
18,160,860
2,247,496 14,323,823
647,590
941,953
2002
1,397,765
4,698 1,379,663
5,205
8,199
32,547,307
32,330,528
5,790,649 22,464,852
1,716,296 2,358,731
2003
1,899,364
27,741 1,843,856
8,198 19,569
58,236,265
58,014,141
6,519,515 37,555,302
6,760,737 7,178,587
2000 Jan.
Feb.
Mar.

4,634,755
4,895,925
5,045,087

237,732
295,232
411,356

4,375,518
4,585,702
4,616,165

15,306
8,378
12,359

6,199
6,613
5,206

9,463,919
9,759,151
9,815,887

7,868,438
8,070,298
8,199,464

860,326
858,245
863,331

6,516,467
6,697,436
6,753,625

229,940
253,199
292,096

261,706
261,418
290,412

Apr.
May
Jun.

4,976,556
5,009,467
5,090,800

97,207
88,861
93,945

4,865,130
4,911,006
4,989,643

8,472
6,860
7,111

5,748
2,740
101

10,159,244
10,346,153
10,466,509

8,503,434
8,928,980
9,064,084

859,121
827,031
915,648

6,992,066
7,485,529
7,521,908

357,462
411,883
457,682

294,785
204,536
168,846

Jul.
Aug.
Sep.

5,226,062
5,654,109
5,603,598

106,741
85,345
35,273

5,111,008
5,560,388
5,558,221

7,668
7,484
8,038

645
893
2,066

11,181,544
11,891,756
11,950,768

9,684,957
10,297,966
10,323,600

1,144,715
1,174,876
1,158,304

7,925,987
8,443,807
8,427,410

482,237
518,560
568,828

132,018
160,723
169,058

Oct.
Nov.
Dec.

5,347,096
776,419
819,055

34,128
16,673
13,775

5,305,267
759,011
801,120

6,768
651
4,160

934
84

11,200,215
11,157,629
10,682,997

10,733,522
10,934,644
10,422,850

1,387,208
1,390,266
1,459,295

8,484,248
8,637,624
8,092,474

585,537
580,027
582,881

276,529
326,728
288,201

2001 Jan.
Feb.
Mar.

868,775
1,056,879
1,912,928

25,608
24,569
33,282

838,013
1,021,918
1,875,735

5,153
5,432
1,266

4,960
2,644

10,714,619
10,551,774
11,098,353

10,469,292
10,308,263
10,844,664

1,304,903
1,355,689
1,221,318

8,329,223
8,141,198
8,674,337

566,944
546,662
545,370

268,221
264,714
403,638

Apr.
May
Jun.

1,904,605
1,945,749
2,000,949

46,364
43,625
45,886

1,840,224
1,898,389
1,948,798

15,159
1,065
2,356

2,857
2,670
3,909

12,074,200
12,283,458
12,521,456

11,848,851
12,113,794
12,343,307

1,768,164
1,531,565
1,442,882

8,984,086
9,589,621
9,867,520

559,301
556,263
552,137

537,300
436,345
480,768

Jul.
Aug.
Sep.

2,125,636
2,252,125
2,204,426

66,038
150,327
145,714

2,053,251
2,094,121
2,050,847

2,572
2,581
3,789

3,775
5,096
4,076

13,459,874
14,069,109
13,997,717

13,189,140
13,745,294
13,782,167

1,380,706
1,285,478
1,448,327

10,694,545
11,273,630
10,932,969

547,395
557,848
578,588

566,494
628,339
822,282

Oct.
Nov.
Dec.

2,233,220
2,561,199
2,315,713

62,388
87,399
30,016

2,162,691
2,468,401
2,279,574

4,800
4,990
5,637

3,341
409
486

14,503,297
15,754,159
18,368,835

14,327,884
15,567,636
18,160,860

1,578,265
1,552,365
2,247,496

11,250,721
12,438,947
14,323,823

631,035
647,873
647,590

867,863
928,451
941,953

2002 Jan.
Feb.
Mar.

2,270,568
1,509,681
1,476,249

45,084
58,175
30,989

2,219,251
1,444,191
1,437,357

5,771
6,055
6,421

463
1,260
1,482

19,248,200
20,442,518
21,430,743

19,059,142
20,201,464
21,192,196

2,802,937
3,060,265
3,295,714

14,760,176
15,596,084
16,351,565

681,927
722,989
783,969

814,102
822,127
760,947

Apr.
May
Jun.

1,536,432
1,561,907
1,665,549

33,121
38,443
46,273

1,486,115
1,509,337
1,602,756

8,756
5,153
6,403

8,439
8,975
10,118

25,842,690
26,891,902
27,606,718

25,613,910
26,697,167
27,373,643

4,175,595
4,038,027
4,451,153

19,895,016
21,019,705
21,078,927

857,175
927,154
1,038,107

686,123
712,280
805,456

Jul.
Aug.
Sep.

1,500,521
1,535,472
1,652,428

22,723
10,026
44,497

1,451,274
1,506,748
1,594,182

12,192
4,395
4,585

14,333
14,303
9,165

28,445,422
30,102,473
26,136,328

28,223,170
29,845,087
25,947,983

4,480,178
4,822,221
3,920,450

21,558,539
22,953,825
19,954,908

1,464,739
1,205,580
1,359,270

719,713
863,462
713,355

Oct.
Nov.
Dec.

1,540,316
1,515,970
1,397,765

28,121
152
4,698

1,497,466
1,495,010
1,379,663

4,820
4,032
5,205

9,909
16,776
8,199

27,287,277
29,889,745
32,547,307

26,995,995
29,665,806
32,330,528

4,381,910
5,618,056
5,790,649

18,973,045
20,451,492
22,464,852

1,756,511
1,627,121
1,716,296

1,884,529
1,969,137
2,358,731

2003 Jan.
Feb.
Mar.

1,602,031
1,734,998
1,653,814

526

1,585,148
1,701,271
1,636,344

4,733
14,630
10,860

12,150
19,096
6,084

33,774,248
34,531,090
36,140,894

33,367,824
34,147,141
35,800,854

5,441,873
6,484,009
6,003,113

23,558,378
23,190,509
24,915,263

1,723,173
1,772,838
1,914,573

2,644,400
2,699,785
2,967,905

Apr.
May
Jun.

1,920,188
1,888,689
1,802,669

3,617
203
0

1,862,848
1,830,788
1,770,745

8,558
9,122
11,198

45,165
48,576
20,726

36,345,971
37,891,964
40,021,517

35,843,536
37,649,726
39,771,762

6,018,460
6,184,864
5,923,002

24,621,043
25,027,631
27,343,697

2,159,960
2,377,114
2,976,114

3,044,072
4,060,116
3,528,949

Jul.
Aug.
Sep.

1,942,138
1,942,444
2,227,132

20,665
940
9,352

1,900,877
1,908,592
2,185,509

9,743
10,329
7,863

10,853
22,583
24,409

39,805,067
43,432,906
47,107,536

39,541,815
43,179,921
46,732,934

5,882,858
6,231,135
6,355,023

26,244,548
28,954,453
31,174,565

3,412,646
3,684,715
3,848,083

4,001,762
4,309,617
5,355,263

Oct. 2,023,503
39,610
Nov. 1,948,875
1,412
Dec. 1,899,364
27,741
1) Insurance companies included.

1,949,236
1,919,121
1,843,856

15,953
9,489
8,198

18,704
18,853
19,569

50,000,480
54,837,595
58,236,265

49,523,575
54,567,195
58,014,141

7,071,510
5,884,658
6,519,515

32,221,092
36,362,016
37,555,302

4,797,355
6,168,930
6,760,737

5,433,618
6,151,591
7,178,587

National Bank of Romania

247

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
- ROL millions; end of period Period
DOMESTIC ASSETS (continued)
Domestic credit (continued)
Non-government credit (continued)
Convertible currency credit (continued)
Medium-term credit (continued)
Long-term credit
Overdue
Total
Current
Economic agents by
Economic agents by
Total
HouseOther 1)
Total
HouseOther 1)
majority ownership
majority ownership
holds
holds
state-owned private
state-owned private
1999
1,580,066
121,849 1,415,888
457
41,872
4,444,245
4,132,244
479,893 3,590,874
37,212
24,265
2000
260,146
34,511
220,829
4,807

5,292,500
5,231,517
623,510 4,474,198
84,191
49,617
2001
207,974
72,895
125,243
9,171
664
8,389,735
8,372,652
1,385,866 6,289,190
492,646
204,950
2002
216,778
54,089
149,240
10,952
2,496 11,184,704 11,163,744
1,020,578 5,062,407
3,309,193 1,771,566
2003
222,124
61,179
128,426
30,578
1,941 32,577,090 32,563,292
3,464,904 10,234,853 14,820,525 4,043,011
2000 Jan.
Feb.
Mar.

1,595,481
1,688,853
1,616,423

121,388
110,939
124,281

1,428,812
1,531,440
1,443,274

673
960
1,930

44,607
45,514
46,938

4,485,873
4,612,484
4,771,432

4,142,904
4,182,700
4,360,339

499,588
507,889
506,294

3,582,218
3,609,196
3,792,547

38,058
41,694
37,439

23,040
23,920
24,059

Apr.
May
Jun.

1,655,810
1,417,174
1,402,426

153,825
105,454
111,403

1,451,106
1,306,422
1,285,218

2,452
2,709
3,186

48,427
2,589
2,619

4,723,195
4,974,939
5,297,126

4,284,462
4,474,524
4,863,473

515,965
548,493
573,922

3,692,494
3,836,941
4,186,947

52,291
64,191
71,567

23,711
24,898
31,037

Jul.
Aug.
Sep.

1,496,587
1,593,790
1,627,168

116,639
109,744
133,702

1,373,410
1,477,722
1,485,329

3,370
3,500
5,172

3,168
2,823
2,964

5,266,344
5,418,995
5,824,751

4,808,329
4,963,458
5,283,262

583,308
598,126
603,688

4,118,616
4,255,068
4,563,943

73,654
75,983
79,643

32,751
34,281
35,987

Oct.
Nov.
Dec.

466,692
222,985
260,146

25,043
24,706
34,511

433,811
193,619
220,829

4,883
4,660
4,807

2,956

5,253,137
4,914,045
5,292,500

5,222,513
4,886,086
5,231,517

594,683
620,743
623,510

4,528,840
4,152,612
4,474,198

67,697
79,769
84,191

31,293
32,961
49,617

2001 Jan.
Feb.
Mar.

245,327
243,511
253,689

29,114
16,044
58,812

210,859
221,141
189,875

5,354
6,326
5,003

5,409,446
5,675,532
5,643,414

5,327,942
5,605,842
5,577,438

664,595
719,945
764,220

4,523,710
4,669,405
4,573,269

108,374
109,767
118,611

31,263
106,724
121,339

Apr.
May
Jun.

225,349
169,664
178,148

53,386
56,411
61,603

166,156
107,298
109,344

5,806
5,828
6,933

0
128
269

5,851,039
6,102,040
6,284,910

5,823,209
6,071,853
6,270,005

849,182
1,032,822
1,094,058

4,703,872
4,755,050
4,843,557

134,509
150,676
165,365

135,646
133,305
167,025

Jul.
Aug.
Sep.

270,734
323,814
215,550

117,994
177,712
66,109

144,931
137,182
138,315

7,703
8,565
10,078

106
356
1,048

6,493,357
6,611,057
7,562,007

6,428,703
6,589,034
7,523,276

1,217,823
1,313,387
1,361,929

4,850,345
4,893,445
5,715,034

196,398
212,815
216,358

164,136
169,387
229,956

Oct.
Nov.
Dec.

175,413
186,523
207,974

67,920
67,871
72,895

98,092
108,639
125,243

9,401
9,499
9,171

514
664

7,643,966
8,106,956
8,389,735

7,630,516
8,090,066
8,372,652

1,412,626
1,500,470
1,385,866

5,704,916
6,003,437
6,289,190

282,966
376,578
492,646

230,008
209,582
204,950

2002 Jan.
Feb.
Mar.

189,058
241,054
238,546

72,559
88,039
57,147

107,290
142,190
171,057

9,132
10,599
10,342

77
226

8,477,469
8,597,995
8,939,199

8,424,934
8,586,989
8,909,300

1,376,743
1,409,943
1,428,654

6,285,401
6,271,637
6,343,418

562,632
703,308
898,237

200,158
202,100
238,991

Apr.
May
Jun.

228,780
194,735
233,075

56,550
63,391
64,746

160,286
118,496
153,610

10,292
10,427
11,674

1,653
2,421
3,045

8,360,499
8,997,816
9,375,946

8,349,429
8,987,289
9,368,564

1,632,041
1,658,467
1,691,991

5,262,971
5,696,543
5,810,311

1,184,799
1,352,847
1,556,277

269,618
279,432
309,985

Jul.
Aug.
Sep.

222,253
257,386
188,345

66,974
55,286
53,367

142,157
181,381
119,136

9,558
10,718
11,138

3,563
10,002
4,704

9,336,363
9,554,400
9,601,756

9,298,174
9,541,746
9,585,171

1,628,778
1,475,088
1,126,690

5,657,694
5,437,132
4,778,253

1,715,407
1,924,883
2,431,554

296,294
704,642
1,248,674

Oct.
Nov.
Dec.

291,282
223,940
216,778

54,125
54,201
54,089

208,380
157,175
149,240

10,758
10,507
10,952

18,018
2,057
2,496

10,277,076
10,452,186
11,184,704

10,258,358
10,433,378
11,163,744

1,293,246
1,015,318
1,020,578

4,634,938
4,838,586
5,062,407

2,751,846
3,025,798
3,309,193

1,578,327
1,553,676
1,771,566

2003 Jan.
Feb.
Mar.

406,424
383,948
340,040

54,382
53,947
58,199

337,280
314,492
268,992

10,491
13,849
11,554

4,271
1,661
1,295

11,394,515
11,778,746
13,733,529

11,354,034
11,752,573
13,686,505

888,438
873,151
1,726,060

5,205,612
5,229,066
5,627,954

3,370,909
3,702,652
4,294,242

1,889,076
1,947,704
2,038,249

Apr.
May
Jun.

502,435
242,238
249,754

58,782
72,234
55,810

431,120
151,916
177,673

10,410
9,822
12,136

2,124
8,266
4,135

15,898,425
17,425,211
19,142,360

15,849,568
17,391,257
19,135,159

1,701,570
1,718,457
1,687,609

6,733,367
7,279,469
7,778,453

5,051,341
5,806,096
6,912,174

2,363,290
2,587,235
2,756,923

Jul.
Aug.
Sep.

263,252
252,985
374,602

55,055
60,705
107,894

194,705
173,376
245,002

10,645
13,996
18,052

2,847
4,908
3,654

22,416,660
24,905,682
24,495,212

22,378,892
24,882,269
24,452,509

2,624,694 9,165,167
2,767,230 10,086,085
2,500,136 8,408,133

8,120,804
9,410,646
10,634,927

2,468,228
2,618,309
2,909,314

Oct.
476,905
61,947
Nov.
270,400
64,101
Dec.
222,124
61,179
1) Insurance companies included.

395,355
173,555
128,426

18,582
27,993
30,578

1,021
4,750
1,941

26,666,508
28,865,838
32,577,090

26,656,259
28,851,801
32,563,292

2,568,636 8,504,622
2,851,257 9,115,003
3,464,904 10,234,853

11,966,593
13,257,938
14,820,525

3,616,407
3,627,603
4,043,011

248

National Bank of Romania

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
- ROL millions; end of period Period
DOMESTIC ASSETS (continued)
Domestic credit (continued)
Float
Interbank
Other assets
Non-government credit (continued)
assets
Total
Net losses
Other
Convertible currency credit (continued)
from forex
Long-term credit (continued)
Governassets and
Overdue
ment
liabilities
Economic agents by
Total
HouseOther 1) credit
revaluation
majority ownership
holds
state-owned private
1999
312,001
36,572 268,955
6,474
30,686,256
131,303
41,699,326
27,824,602
26,235 27,798,367
2000
60,983
4,110
54,957
1,916
31,718,159
188,019
57,302,566
26,003,929
4,739 25,999,189
2001
17,083
1,887
13,871
1,983
659 37,994,118
541,549
95,896,080
44,173,866
4,905 44,168,961
2002
20,960

20,738
222
43,794,684
11,226 153,202,698
55,363,610
99,835 55,263,774
2003
13,798

12,677
1,118
2 28,732,520
28,506 180,879,153
62,186,168
95,031 62,091,137
2000 Jan.
Feb.
Mar.

342,969
429,785
411,094

37,329
56,289
44,406

299,104
366,905
359,976

6,536
6,591
6,712

31,864,239
30,960,991
31,498,420

501
3,570
1,681

43,287,230
42,030,045
44,964,923

28,230,280
28,582,830
29,881,001

4,709 28,225,571
2,481 28,580,349
9,810 29,871,191

Apr.
May
Jun.

438,733
500,415
433,653

49,920
52,403
44,400

381,975
441,151
386,935

6,838
6,861
2,317

32,449,597
29,964,264
34,388,394

186
2,179

43,752,600
45,991,727
44,418,149

31,048,319
29,517,244
29,317,189

11,370 31,036,949
11,772 29,505,473
9,304 29,307,886

Jul.
Aug.
Sep.

458,015
455,536
541,488

49,769
32,454
77,268

406,835
421,462
462,526

1,411
1,621
1,695

33,839,080
36,044,071
29,704,371

45,411
19,485

46,285,437
47,069,463
49,455,195

29,682,031
29,844,826
29,976,341

16,996 29,665,036
23,363 29,821,463
25,324 29,951,017

Oct.
Nov.
Dec.

30,624
27,960
60,983

4,110

30,226
27,841
54,957

398
118
1,916

33,113,294
36,741,623
31,718,159

6,706
77,060
188,019

47,567,505
44,343,690
57,302,566

27,506,472
27,356,668
26,003,929

31,834 27,474,638
8,112 27,348,557
4,739 25,999,189

2001 Jan.
Feb.
Mar.

81,505
69,691
65,976

4,416
2,477
1,071

75,375
65,498
63,355

1,703
1,716
1,550

11 37,940,251
39,107,588
32,862,641

112,167
99,474
156,956

53,350,315
54,727,795
69,196,788

28,813,911
29,385,314
31,673,489

9,376 28,804,535
9,335 29,375,978
9,347 31,664,142

Apr.
May
Jun.

27,830
30,187
14,905

27,182
29,565
14,228

648
622
677

40,308,797
44,459,935
36,285,671

482,685
241
74,881

60,918,556
60,591,742
73,316,464

31,777,429
32,944,881
35,588,688

9,765 31,767,664
10,486 32,934,395
4,679 35,584,008

Jul.
Aug.
Sep.

64,654
22,022
38,731

1,013

59,209
19,728
36,846

675
2,294
1,885

3,756 38,475,705
36,385,404
32,779,344

38,858
26,773
24,292

74,846,763
77,473,965
84,177,143

35,695,389
36,426,243
36,965,742

5,411 35,689,977
7,944 36,418,299
5,642 36,960,100

Oct.
Nov.
Dec.

13,450
16,890
17,083

141
1,468
1,887

11,473
13,638
13,871

1,836
1,784
1,983

45,132,843
44,000,397
659 37,994,118

111,075
50,688
541,549

80,076,644
81,518,049
95,896,080

36,774,625
40,442,567
44,173,866

6,471 36,768,153
6,249 40,436,318
4,905 44,168,961

2002 Jan.
Feb.
Mar.

52,534
11,007
29,899

3,746
1,287
1,634

46,977
9,702
28,238

1,811
18
27

41,355,116
41,171,277
37,738,201

105,072
113,482
26,145

93,202,951
97,326,934
108,655,828

43,504,326
45,775,598
48,534,991

223,499 43,280,827
3,995 45,771,603
3,375 48,531,616

Apr.
May
Jun.

11,070
10,527
7,382

334

10,715
10,510
7,338

21
17
44

41,989,415
41,006,009
40,149,244

180,339
480,461
67,191

109,604,322
114,605,486
120,151,790

48,960,924
47,735,035
49,789,143

3,215 48,957,709
4,351 47,730,684
5,373 49,783,769

Jul.
Aug.
Sep.

38,189
12,654
16,585

38,055
12,516
16,308

134
138
277

43,914,947
45,819,745
38,697,684

845,598
27,852
14,529

121,333,071
126,566,823
131,958,909

47,234,608
51,569,477
51,551,804

16,694 47,217,915
8,922 51,560,556
14,601 51,537,203

Oct.
Nov.
Dec.

18,718
18,808
20,960

18,598
18,699
20,738

120
109
222

41,237,399
42,554,362
43,794,684

43,112
15,324
11,226

139,043,444
141,839,271
153,202,698

51,149,679
51,960,564
55,363,610

23,691 51,125,988
25,248 51,935,316
99,835 55,263,774

2003 Jan.
Feb.
Mar.

40,481
26,173
47,024

1,025

40,299
24,819
46,748

182
329
276

44,756,325
46,024,535
45,023,908

1,557
10,595
10,045

152,842,713
150,997,259
153,681,326

57,346,047
58,962,601
57,666,038

133,854 57,212,194
242,468 58,720,133
217,607 57,448,430

Apr.
May
Jun.

48,857
33,955
7,201

165

48,502
33,488
6,499

355
466
537

42,173,680
40,490,392
48,012,604

13,562
2,786
348,981

150,023,330
144,624,199
139,487,666

60,577,140
59,099,754
60,277,593

55,256 60,521,884
111,477 58,988,277
43,695 60,233,898

Jul.
Aug.
Sep.

37,768
23,412
42,703

338
2,847
1,661

36,752
19,723
40,207

678
842
835

35,539,131
33,536,719
31,339,236

1,554
377,223
382,663

146,961,509
159,009,371
163,727,883

60,615,969
61,925,534
62,320,532

40,399 60,575,570
10,269 61,915,265
68,672 62,251,860

Oct.
10,249
1,647
Nov.
14,037

Dec.
13,798

1) Insurance companies included.

7,556
12,650
12,677

1,046
1,387
1,118

29,012,612
27,420,602
2 28,732,520

374,906
372,342
28,506

174,628,040
170,264,869
180,879,153

63,363,687
64,548,531
62,186,168

22,503 63,341,184
58,904 64,489,627
95,031 62,091,137

National Bank of Romania

249

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
Period
LIABILITIES

250

- ROL millions; end of period FOREIGN LIABILITIES


Short-term
Total
Total

Convertible currencies
Total
Borrowings
from
foreign
banks

Deposits
of
foreign
banks

Deposits
of other
nonresidents

Medium &
ROL
Nonlong-term
deposits convertible
of other currencies
nonresidents

1999
2000
2001
2002
2003

182,177,628
232,673,619
352,146,441
478,192,132
617,367,024

11,178,578
13,181,292
20,896,304
33,641,767
72,251,965

4,084,424
5,911,101
11,952,071
16,630,938
39,806,731

4,036,696
5,843,167
11,707,233
16,436,220
39,399,557

441,303
458,591
657,467
641,549
4,242,288

1,487,865 2,107,528 47,685


1,955,636 3,428,940 67,934
6,346,197 4,703,569 244,837
9,372,337 6,422,334 194,719
24,926,081 10,231,188 407,174

43 7,094,154
7,270,191
8,944,233
17,010,828
32,445,235

2000 Jan.
Feb.
Mar.

184,835,044
185,630,097
193,373,152

11,145,834
11,876,276
11,088,852

4,559,855
5,241,287
5,006,930

4,517,111
5,197,006
4,954,286

597,556
898,509
673,994

1,767,436
2,025,743
2,104,303

2,152,119
2,272,754
2,175,988

42,701
44,236
52,599

42
45
45

6,585,980
6,634,989
6,081,922

Apr.
May
Jun.

196,070,955
201,084,336
205,844,743

10,890,631
12,467,994
11,261,733

4,917,018
6,177,345
4,916,256

4,843,006
6,098,737
4,831,981

630,180
985,009
311,881

1,867,645
2,773,106
2,044,532

2,345,181
2,340,623
2,475,568

73,968
78,559
84,223

44
49
52

5,973,613
6,290,649
6,345,477

Jul.
Aug.
Sep.

211,365,633
219,033,772
226,478,292

11,549,359
11,544,090
11,937,209

5,334,051
5,176,629
5,188,127

5,097,917
5,111,815
5,106,596

488,979
418,301
340,461

1,898,935
1,822,863
1,919,817

2,710,003 236,081
2,870,651 64,814
2,846,318 81,531

52

6,215,309
6,367,461
6,749,082

Oct.
Nov.
Dec.

228,154,726
222,769,098
232,673,619

11,997,971
12,799,880
13,181,292

5,403,576
6,155,911
5,911,101

5,323,944
6,076,600
5,843,167

516,617
478,199
458,591

1,822,111
2,226,680
1,955,636

2,985,215
3,371,722
3,428,940

79,633
78,407
67,934

904

6,594,395
6,643,969
7,270,191

2001 Jan.
Feb.
Mar.

241,833,325
249,464,387
261,279,129

13,247,391
14,425,395
14,390,465

6,726,791
7,117,376
5,702,742

6,657,218
7,055,819
5,634,341

711,689
790,916
615,550

2,174,850
2,223,919
1,321,167

3,770,679
4,040,983
3,697,624

69,573
61,557
68,401

6,520,601
7,308,020
8,687,723

Apr.
May
Jun.

269,116,806
269,876,161
280,200,317

16,450,905
15,842,157
16,516,309

7,766,240
7,966,016
8,119,918

7,681,075
7,878,604
8,010,721

1,021,877
683,067
918,991

2,785,328
3,050,461
3,137,780

3,873,869 85,165
4,145,076 87,412
3,953,950 109,197

8,684,665
7,876,141
8,396,391

Jul.
Aug.
Sep.

292,203,886
302,428,148
313,817,522

17,522,474
18,541,536
20,002,446

9,108,544
10,589,918
11,878,890

9,009,716
10,475,332
11,744,173

951,231
590,355
1,838,969

3,687,019
5,391,300
5,007,118

4,371,466 98,828
4,493,677 114,586
4,898,087 134,716

8,413,930
7,951,618
8,123,556

Oct.
Nov.
Dec.

325,359,596
335,403,665
352,146,441

19,824,112
19,265,861
20,896,304

11,053,884
10,330,757
11,952,071

10,909,994
10,170,285
11,707,233

530,488
700,422
657,467

5,517,391
4,724,154
6,346,197

4,862,114 143,891
4,745,710 160,472
4,703,569 244,837

8,770,228
8,935,104
8,944,233

2002 Jan.
Feb.
Mar.

355,321,128
361,687,490
375,452,139

22,093,292
22,760,178
23,753,468

13,060,820
13,734,885
14,593,658

12,740,405
13,348,692
14,277,960

931,299
848,023
967,092

6,989,272
7,310,927
8,103,327

4,819,834 320,415
5,189,742 386,193
5,207,542 315,698

9,032,472
9,025,293
9,159,810

Apr.
May
Jun.

385,338,722
393,458,400
405,242,429

24,979,032
28,797,375
29,740,177

15,293,896
17,437,925
17,355,988

15,076,811
17,226,399
17,152,262

368,202
1,124,241
739,384

9,193,287
10,250,336
10,180,633

5,515,322 217,085
5,851,822 211,527
6,232,245 203,726

9,685,137
11,359,449
12,384,189

Jul.
Aug.
Sep.

408,286,145
419,473,562
427,391,026

29,529,228
30,984,489
31,694,354

17,719,342
18,389,054
19,146,258

17,480,941
18,165,320
18,910,292

792,747
707,419
1,613,076

10,690,696
11,236,224
10,937,602

5,997,498 238,401
6,221,677 223,733
6,359,613 235,966

11,809,886
12,595,435
12,548,096

Oct.
Nov.
Dec.

438,728,357
451,276,808
478,192,132

33,131,080
32,264,301
33,641,767

19,618,576
18,485,559
16,630,938

19,336,090
18,287,279
16,436,220

1,193,082
951,903
641,549

11,987,746
11,548,032
9,372,337

6,155,262 282,486
5,787,344 198,280
6,422,334 194,719

13,512,504
13,778,742
17,010,828

2003 Jan.
Feb.
Mar.

478,636,328
486,268,460
493,673,353

36,619,169
36,974,063
39,482,013

17,447,064
16,964,116
19,987,913

17,228,549
16,780,944
19,731,510

1,616,982
1,428,996
3,268,865

8,639,803
8,612,937
9,393,578

6,971,764 218,515
6,739,011 183,172
7,069,067 256,403

19,172,105
20,009,947
19,494,100

Apr.
May
Jun.

495,749,607
503,790,989
518,290,661

41,011,520
44,410,150
45,905,485

19,198,915
22,150,410
23,531,781

18,901,703
21,863,597
23,180,801

2,446,304
3,291,854
2,918,809

9,691,931
11,181,988
12,739,718

6,763,468 297,212
7,389,755 286,813
7,522,274 350,980

21,812,605
22,259,741
22,373,704

Jul.
Aug.
Sep.

517,237,804
543,447,273
560,639,597

45,340,491
49,579,819
55,473,714

22,202,343
25,563,055
29,913,847

21,784,441
25,214,601
29,440,499

3,137,315
3,152,222
2,554,655

11,036,105
13,955,024
17,206,921

7,611,021 417,903
8,107,355 348,454
9,678,923 473,348

23,138,148
24,016,763
25,559,866

Oct.
Nov.
Dec.

581,834,094
594,027,380
617,367,024

59,589,432
68,586,409
72,251,965

33,397,843
41,688,875
39,806,731

32,935,354
41,294,604
39,399,557

3,866,538
5,204,531
4,242,288

18,492,345 10,576,472 462,489


23,725,279 12,364,794 394,271
24,926,081 10,231,188 407,174

26,191,589
26,897,534
32,445,235

National Bank of Romania

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
Period
DOMESTIC LIABILITIES
Non-bank clients' deposits
Total
Total
Demand deposits
Economic agents by
Total
majority ownership
state-owned private

Household
accounts

1999
2000
2001
2002
2003

170,999,050
219,492,327
331,250,137
444,550,366
545,115,059

116,750,882
159,318,296
234,876,529
328,134,185
402,762,836

12,297,315
20,589,419
28,673,276
42,726,346
55,281,363

2,348,360
3,729,926
4,633,268
5,136,246
6,203,856

745,275
1,341,479
2,161,834
3,721,835
6,062,336

2000 Jan.
Feb.
Mar.

173,689,209
173,753,821
182,284,300

113,734,202
115,468,723
120,034,872

9,096,946
9,320,179
9,920,650

1,742,622
1,812,583
1,959,572

Apr.
May
Jun.

185,180,324
188,616,342
194,583,010

120,160,931
122,865,677
127,048,598

10,334,426
10,458,507
10,807,565

Jul.
Aug.
Sep.

199,816,274
207,489,682
214,541,083

131,029,377
136,771,269
140,504,553

Oct.
Nov.
Dec.

216,156,755
209,969,218
219,492,327

2001 Jan.
Feb.
Mar.

Cheques Other 1)

45,398
46,706
39,241
35,597
32,190

Household savings
Total
Demand

Time

1,238,169
2,010,810
2,705,711
4,397,083
5,661,854

39,238,116
44,548,689
63,706,466
88,894,234
99,584,829

1,356,743
1,591,440
2,221,310
3,478,128
5,169,700

37,881,373
42,957,249
61,485,157
85,416,105
94,415,128

5,282,979
859,800
5,268,855 1,002,612
5,920,762
899,757

31,090 1,180,455
26,493 1,209,636
27,418 1,113,141

40,734,773
41,922,062
42,988,267

1,127,571
1,277,235
1,266,898

39,607,202
40,644,828
41,721,369

2,061,486
1,852,143
1,844,844

5,841,704 1,038,454
6,337,153
923,920
6,704,898
937,721

26,093 1,366,688
31,511 1,313,781
43,363 1,276,740

43,038,790
42,599,227
43,252,928

1,332,166
1,365,619
1,450,551

41,706,624
41,233,608
41,802,376

11,905,495
12,786,527
12,920,857

2,054,279
2,517,456
2,402,155

7,365,889
7,795,658
7,978,413

973,360
955,001
934,906

33,136 1,478,831
41,330 1,477,080
43,574 1,561,807

43,624,006
43,090,094
42,328,466

1,490,509
1,428,471
1,448,612

42,133,497
41,661,624
40,879,854

141,554,422
141,752,121
159,318,296

13,133,716
14,215,644
20,589,419

2,520,779 7,909,417 1,012,566


2,938,131 8,507,110 1,216,145
3,729,926 13,460,498 1,341,479

43,723 1,647,230
42,942 1,511,318
46,706 2,010,810

41,094,976
40,827,156
44,548,689

1,377,837
1,446,007
1,591,440

39,717,138
39,381,148
42,957,249

228,585,933
235,038,992
246,888,664

157,129,373
162,457,564
167,776,852

14,986,752
15,760,109
15,333,554

2,769,458
3,160,518
3,011,732

9,058,003 1,311,668
9,098,029 1,402,628
9,226,560 1,426,310

36,076 1,811,546
37,411 2,061,524
36,927 1,632,025

45,828,812
46,923,084
48,381,620

1,471,499
1,582,685
1,628,590

44,357,314
45,340,399
46,753,030

Apr.
May
Jun.

252,665,901
254,034,003
263,684,008

172,802,402
174,371,571
178,852,181

16,259,086
16,293,406
16,355,121

2,942,421 9,950,834 1,563,972


2,927,451 9,980,806 1,546,280
2,600,573 10,207,588 1,641,266

31,276 1,770,582
36,606 1,802,263
33,906 1,871,789

49,755,284
50,697,300
52,348,194

1,809,874
1,697,533
1,890,227

47,945,411
48,999,767
50,457,967

Jul.
Aug.
Sep.

274,681,412
283,886,612
293,815,076

187,049,332
196,727,444
202,499,877

17,617,171
18,341,928
18,427,561

2,634,592 11,278,660 1,774,316


2,635,433 11,785,768 1,925,816
2,755,226 11,810,399 1,676,509

35,394 1,894,209
36,192 1,958,720
33,813 2,151,615

53,138,210
54,030,326
55,327,342

1,910,798
1,977,288
2,036,615

51,227,412
52,053,038
53,290,727

Oct.
Nov.
Dec.

305,535,483
316,137,804
331,250,137

206,054,690
213,760,203
234,876,529

19,197,062
19,250,741
28,673,276

3,012,134 12,047,154 1,832,099


2,949,726 12,301,061 1,886,306
4,633,268 19,133,221 2,161,834

33,254 2,272,420
32,588 2,081,060
39,241 2,705,711

56,760,864
58,669,678
63,706,466

1,970,251
2,201,165
2,221,310

54,790,614
56,468,513
61,485,157

2002 Jan.
Feb.
Mar.

333,227,836
338,927,313
351,698,671

229,910,874
234,678,332
241,910,223

20,735,657
22,070,887
22,465,513

3,615,487 12,603,822 2,105,096


3,891,301 12,835,454 2,396,397
4,354,577 13,293,242 2,423,611

35,260 2,375,992
40,447 2,907,289
36,231 2,357,853

65,542,102
67,766,019
70,377,791

2,446,886
2,885,641
3,257,706

63,095,216
64,880,378
67,120,085

Apr.
May
Jun.

360,359,690
364,661,026
375,502,252

248,382,940
255,631,983
261,297,162

22,689,929
24,799,109
24,751,748

3,555,287 13,995,928 2,789,301


3,770,739 15,706,095 2,708,251
3,553,504 15,418,532 3,032,855

40,433 2,308,979
32,133 2,581,891
36,801 2,710,055

72,442,843
73,852,241
75,446,703

3,627,489
2,626,501
2,824,350

68,815,353
71,225,741
72,622,353

Jul.
Aug.
Sep.

378,756,917
388,489,073
395,696,673

264,370,961
273,593,544
274,998,271

26,627,683
28,125,945
29,100,996

3,581,398 17,020,516 3,227,399


3,492,990 18,685,697 3,166,469
3,546,804 19,547,849 2,969,462

33,094 2,765,276
45,706 2,735,083
37,651 2,999,231

77,507,976
79,336,584
79,945,704

2,972,773
3,070,362
3,008,893

74,535,203
76,266,221
76,936,811

Oct.
Nov.
Dec.

405,597,278
419,012,506
444,550,366

283,608,590
292,895,568
328,134,185

30,994,784
31,133,770
42,726,346

3,674,363 20,599,539 3,162,111


3,858,060 20,493,242 3,405,629
5,136,246 29,435,584 3,721,835

47,828 3,510,943
37,060 3,339,779
35,597 4,397,083

82,290,065
83,837,241
88,894,234

3,128,892
3,265,837
3,478,128

79,161,173
80,571,403
85,416,105

2003 Jan.
Feb.
Mar.

442,017,159
449,294,397
454,191,341

314,178,464
321,628,691
323,583,458

32,258,929
32,516,152
34,072,972

4,076,155 20,559,478 3,706,791 25,773 3,890,732


4,424,653 20,111,041 4,284,830 23,645 3,671,983
4,613,384 21,528,264 4,265,006 116,021 3,550,297

90,508,803
92,752,991
93,097,574

3,501,615
3,993,379
3,830,965

87,007,188
88,759,612
89,266,609

Apr.
May
Jun.

454,738,087
459,380,838
472,385,176

327,019,684
328,884,290
335,964,516

36,245,327
34,805,792
39,610,321

4,920,029 22,554,230 4,854,894


3,626,655 22,075,113 4,746,791
4,769,094 24,702,910 5,556,886

58,833 3,857,341
27,189 4,330,045
25,453 4,555,979

94,126,327
93,632,565
93,925,930

4,455,879
4,410,172
4,678,041

89,670,448
89,222,393
89,247,889

Jul.
Aug.
Sep.

471,897,313
493,867,454
505,165,883

336,415,100
348,893,085
356,325,725

39,264,734
41,467,108
43,371,298

4,069,608 25,335,988 5,469,649


3,747,418 27,838,905 5,478,214
3,748,856 29,483,199 5,106,535

24,530 4,364,960
25,243 4,377,328
26,910 5,005,798

93,961,141
94,990,056
94,845,258

5,007,534
5,208,680
5,064,285

88,953,607
89,781,376
89,780,973

Oct.
522,244,662 365,756,387
Nov.
525,440,972 368,391,777
Dec.
545,115,059 402,762,836
1) Insurance companies included.

42,221,906
42,150,739
55,281,363

3,630,950 28,520,104 5,426,632


4,671,255 26,760,990 5,772,774
6,203,856 37,321,128 6,062,336

27,093 4,617,127
30,923 4,914,796
32,190 5,661,854

95,854,702
97,159,522
99,584,829

4,900,491
5,156,506
5,169,700

90,954,211
92,003,016
94,415,128

National Bank of Romania

7,920,113
13,460,498
19,133,221
29,435,584
37,321,128

- ROL millions; end of period -

251

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
Period
DOMESTIC LIABILITIES (continued)
Non-bank clients' deposits (continued)
ROL deposits
Total
Time
Restricted

- ROL millions; end of period -

Certificates
of
deposit

Convertible currency deposits


Total
Demand
Total

Economic agents by
majority ownership
state-owned private

Household
deposits

Other 1)

1999
2000
2001
2002
2003

14,733,940
19,323,875
26,712,648
49,701,891
76,738,037

7,810,157
11,485,363
15,926,442
29,369,971
50,086,987

2,574,733
3,899,715
5,555,282
9,061,790
11,749,924

4,349,049
3,938,796
5,230,924
11,270,130
14,901,127

50,481,511
74,856,314
115,784,139
146,811,715
171,158,607

22,576,287
27,831,151
38,240,126
49,462,817
59,351,233

5,603,697
4,148,023
4,292,778
6,959,489
4,668,483

2000 Jan.
Feb.
Mar.

14,100,800
15,133,564
15,905,797

6,850,129
7,452,103
8,023,319

2,598,675
2,706,535
2,811,738

4,651,995
4,974,926
5,070,740

49,801,683
49,092,917
51,220,159

17,697,470
16,836,914
18,121,981

2,406,723
2,473,318
2,772,421

8,375,013
7,579,041
8,409,078

5,162,955 1,752,779
5,086,913 1,697,642
5,258,379 1,682,103

Apr.
May
Jun.

15,220,411
14,792,557
15,318,105

7,495,158
7,581,848
8,203,055

2,721,077
2,767,715
2,892,033

5,004,177
4,442,995
4,223,017

51,567,304
55,015,385
57,670,001

17,681,849
19,355,569
20,577,111

2,721,783
2,939,417
2,997,045

8,004,703
9,136,218
10,164,625

5,340,480 1,614,883
5,550,071 1,729,863
5,617,268 1,798,173

Jul.
Aug.
Sep.

15,233,114
16,110,052
17,039,517

8,175,922
9,054,627
10,013,884

2,909,214
3,037,579
3,114,899

4,147,977
4,017,847
3,910,734

60,266,761
64,784,595
68,215,712

21,344,929
23,101,012
23,925,026

3,457,930
3,533,684
3,635,077

10,303,754
11,344,958
11,969,901

5,763,640 1,819,606
6,063,511 2,158,859
6,477,188 1,842,861

Oct.
Nov.
Dec.

16,095,063
16,345,329
19,323,875

9,114,955
9,053,232
11,485,363

3,128,471
3,455,533
3,899,715

3,851,637
3,836,564
3,938,796

71,230,667
70,363,992
74,856,314

24,386,027
24,666,477
27,831,151

3,484,902
3,450,441
4,148,023

12,176,504
11,558,389
13,424,360

6,749,883 1,974,738
7,615,763 2,041,884
7,874,749 2,384,019

2001 Jan.
Feb.
Mar.

17,778,553
19,372,192
20,802,911

9,780,586
11,203,091
12,468,980

3,909,898
3,959,464
4,002,465

4,088,068
4,209,637
4,331,466

78,535,256
80,402,179
83,258,766

27,786,607
29,631,842
31,113,397

3,662,162
3,534,998
4,596,787

13,671,634
14,971,159
15,697,087

8,145,684 2,307,128
8,372,602 2,753,083
8,392,620 2,426,902

Apr.
May
Jun.

19,582,339
19,475,655
20,218,060

10,982,423
10,783,660
11,395,646

4,182,686
4,183,131
4,190,843

4,417,229
4,508,865
4,631,570

87,205,693
87,905,210
89,930,806

31,490,720
31,977,766
31,071,861

4,788,551
4,391,682
3,995,966

15,611,669
16,125,654
15,473,072

8,683,049 2,407,452
8,951,251 2,509,179
9,129,019 2,473,804

Jul.
Aug.
Sep.

20,355,798
21,694,656
21,947,600

11,266,927
12,549,129
12,596,395

4,384,475
4,428,346
4,544,599

4,704,396
4,717,182
4,806,606

95,938,153
102,660,533
106,797,374

36,232,206
35,082,828
35,510,106

4,426,742
4,124,805
4,107,191

19,574,330 9,503,518 2,727,616


17,862,386 10,300,455 2,795,182
17,883,540 10,664,507 2,854,868

Oct.
Nov.
Dec.

22,590,812
23,942,946
26,712,648

12,872,159
14,036,612
15,926,442

4,802,864
4,843,484
5,555,282

4,915,789
5,062,849
5,230,924

107,505,951
111,896,839
115,784,139

36,967,558
37,580,744
38,240,126

4,486,810
4,318,818
4,292,778

18,924,568 10,621,147 2,935,033


19,485,564 10,664,626 3,111,736
18,856,742 11,914,012 3,176,593

2002 Jan.
Feb.
Mar.

26,919,090
29,089,402
31,487,027

15,877,122
17,460,999
19,273,355

5,483,670
5,671,886
5,757,458

5,558,298
5,956,517
6,456,213

116,714,025
115,752,024
117,579,892

37,968,257
38,100,315
37,105,469

4,016,904
4,936,696
3,871,337

18,868,581 11,638,754 3,444,019


18,257,256 11,395,252 3,511,112
17,905,239 11,424,349 3,904,544

Apr.
May
Jun.

34,318,613
33,938,951
36,534,659

21,198,232
20,289,867
22,099,109

6,252,475
6,433,442
6,795,426

6,867,906
7,215,641
7,640,124

118,931,556
123,041,682
124,564,052

38,545,127
41,469,552
42,081,048

4,421,212
4,513,710
4,230,171

18,089,401 12,030,832 4,003,683


20,514,993 12,251,830 4,189,019
20,917,526 12,487,840 4,445,511

Jul.
Aug.
Sep.

37,336,292
39,742,416
38,077,336

22,468,419
24,150,074
21,822,206

6,811,137
7,001,187
7,236,418

8,056,736
8,591,155
9,018,711

122,899,010
126,388,600
127,874,234

40,042,638
41,482,449
42,494,610

4,514,141
4,645,978
4,468,353

19,035,769 12,392,402 4,100,327


19,727,605 12,659,419 4,449,447
21,307,038 12,516,431 4,202,787

Oct.
Nov.
Dec.

40,363,261
42,749,691
49,701,891

22,597,269
23,882,183
29,369,971

7,714,002
8,148,505
9,061,790

10,051,990
10,719,003
11,270,130

129,960,480
135,174,867
146,811,715

44,589,144
47,210,155
49,462,817

4,073,712
4,322,099
6,959,489

23,115,536 12,743,275 4,656,622


25,636,755 13,032,290 4,219,011
22,736,457 14,241,741 5,525,129

2003 Jan.
Feb.
Mar.

46,235,723
48,326,119
50,096,366

25,582,141
26,802,133
27,847,768

8,757,392
9,216,584
9,185,959

11,896,190
12,307,402
13,062,639

145,175,010
148,033,429
146,316,546

51,487,260
53,712,005
50,637,085

9,309,510
6,259,215
6,108,962

23,366,374 13,483,976 5,327,400


28,223,972 13,828,434 5,400,384
24,601,437 14,559,012 5,367,674

Apr.
May
Jun.

50,394,997
50,158,456
49,737,511

27,523,090
26,771,946
26,618,513

9,907,348
10,677,037
10,676,730

12,964,559
12,709,473
12,442,268

146,253,033
150,287,477
152,690,754

50,980,821
50,661,692
54,261,898

5,217,490
5,054,083
4,382,231

24,192,316 15,590,117 5,980,898


22,936,650 16,472,616 6,198,343
26,158,578 17,186,223 6,534,866

Jul.
Aug.
Sep.

50,619,545
55,271,588
58,489,291

28,067,612
32,461,395
34,113,600

10,180,096
10,414,332
10,421,426

12,371,837
12,395,861
13,954,265

152,569,680
157,164,333
159,619,878

52,776,269
54,516,725
57,477,585

4,491,316
5,496,862
5,148,133

24,590,512 17,076,804 6,617,637


24,896,447 17,720,805 6,402,612
27,793,074 18,031,394 6,504,983

Oct. 60,298,665
35,861,942
Nov. 60,909,538
35,640,846
Dec. 76,738,037
50,086,987
1) Insurance companies included.

10,583,609
10,953,756
11,749,924

13,853,114
14,314,937
14,901,127

167,381,114
168,171,978
171,158,607

58,730,864
59,374,916
59,351,233

5,987,403
4,921,549
4,668,483

26,929,286 18,785,933 7,028,243


28,270,457 19,091,193 7,091,716
28,286,798 19,371,436 7,024,517

252

9,769,506 5,067,189 2,135,895


13,424,360 7,874,749 2,384,019
18,856,742 11,914,012 3,176,593
22,736,457 14,241,741 5,525,129
28,286,798 19,371,436 7,024,517

National Bank of Romania

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
Period
DOMESTIC LIABILITIES (continued)
Non-bank clients' deposits (continued)
Convertible currency deposits (continued)
Time
Economic agents by
Total
Housemajority ownership
hold
state-owned private
deposits

1999
2000
2001
2002
2003

- ROL millions; end of period Float

Other 1)

Interbank
liabilities

Restricted 2)

Government deposits
Total
Deposits
from
MLT
financing

27,905,224
47,025,163
77,544,014
97,348,898
111,807,374

1,041,670
2,358,212
3,238,133
14,584,865
5,172,830

5,252,087
10,286,309
14,300,092
16,389,333
20,160,706

15,977,426
24,668,546
45,428,363
51,490,348
66,892,518

982,936
1,922,163
1,849,870
3,999,878
4,299,811

4,651,105
7,789,933
12,727,555
10,884,474
15,281,509

232,449
493,947
879,881
659,544
1,097,956

9,626,508 5,630,419 2,902,088


11,042,157 7,024,413 4,217,605
13,121,250 13,030,044 9,668,114
15,677,697 14,690,901 11,043,470
18,103,878 18,767,603 12,980,734

2000 Jan.
Feb.
Mar.

32,104,214
32,256,004
33,098,178

3,475,206
3,110,709
3,035,085

5,167,202
6,049,890
6,142,280

16,771,916
16,395,531
16,803,333

1,892,642
1,916,025
1,960,483

4,797,249
4,783,848
5,156,996

1,899,918
1,277,236
1,820,373

10,018,408
8,012,060
10,501,518

6,199,386
5,674,003
5,850,407

2,888,372
2,916,721
2,987,097

Apr.
May
Jun.

33,885,455
35,659,816
37,092,891

3,232,588
3,220,959
4,000,445

5,970,993
6,813,242
7,357,797

17,625,993
17,829,534
18,164,500

2,127,666
2,183,121
2,194,211

4,928,216
5,612,960
5,375,938

1,519,392
1,750,748
1,817,580

10,197,144
8,933,095
9,811,075

5,733,901
5,840,205
6,224,222

3,061,353
3,098,761
3,328,045

Jul.
Aug.
Sep.

38,921,832
41,683,583
44,290,686

3,947,182 8,532,434
3,198,629 9,618,399
2,880,953 10,241,352

19,071,015
20,613,899
22,602,182

2,071,408
2,236,724
2,299,415

5,299,794
6,015,932
6,266,784

1,989,913
1,972,492
2,653,270

8,804,289
10,079,419
10,142,916

6,452,976
6,347,456
6,790,461

3,401,581
3,528,401
3,739,033

Oct.
Nov.
Dec.

46,844,640
45,697,515
47,025,163

3,339,115 10,298,302
2,956,545 10,410,836
2,358,212 10,286,309

24,413,408
23,361,067
24,668,546

2,166,121
2,095,627
1,922,163

6,627,694
6,873,440
7,789,933

3,452,406
2,648,263
493,947

11,927,938
10,442,000
11,042,157

6,977,000
6,986,439
7,024,413

3,892,839
4,189,202
4,217,605

2001 Jan.
Feb.
Mar.

50,748,648
50,770,337
52,145,369

3,444,679 11,260,599
3,104,892 9,093,288
2,503,566 10,218,360

26,564,833
28,185,835
28,731,528

2,157,798
2,126,697
2,356,407

7,320,739
8,259,624
8,335,508

2,211,218
2,166,447
2,513,225

12,426,071
11,862,214
13,011,020

7,379,946
7,330,021
7,666,857

4,227,737
4,219,212
4,482,293

Apr.
May
Jun.

55,714,973
55,927,444
58,858,945

2,343,635 11,692,067
1,784,371 11,729,736
1,583,720 11,865,422

30,190,520
30,875,927
32,625,748

2,114,079
1,917,037
2,458,413

9,374,670
9,620,372
10,325,642

2,459,808
2,474,783
2,675,005

10,959,109
10,339,465
11,656,602

7,745,807
7,737,135
8,037,830

4,519,139
4,626,786
4,702,353

Jul.
Aug.
Sep.

59,705,947
67,577,705
71,287,268

2,093,739 9,886,172
2,380,748 14,771,619
1,862,424 16,663,649

34,937,469
37,549,931
39,430,488

2,618,151
2,752,478
2,418,093

10,170,416
10,122,929
10,912,614

2,872,983
2,670,606
3,093,015

11,192,565
10,727,802
11,330,811

8,487,489
7,899,789
8,170,872

4,677,995
4,661,351
4,746,807

Oct.
Nov.
Dec.

70,538,393
74,316,096
77,544,014

3,859,318 12,090,210
3,797,698 14,142,151
3,238,133 14,300,092

40,970,892
43,291,569
45,428,363

1,922,978
2,145,436
1,849,870

11,694,995
10,939,241
12,727,555

2,875,250
2,912,914
879,881

11,880,761 13,289,785 10,132,026


10,565,768 13,873,363 9,979,824
13,121,250 13,030,044 9,668,114

2002 Jan.
Feb.
Mar.

78,745,767
77,651,709
80,474,423

3,464,282 14,247,919
2,304,214 13,941,464
2,173,945 14,524,130

47,163,107
46,978,902
47,896,251

2,249,334
2,341,919
3,141,634

11,621,125
12,085,210
12,738,463

3,531,219
4,798,834
3,227,946

12,386,637 13,115,134
11,856,543 13,008,940
14,039,516 12,910,451

Apr.
May
Jun.

80,386,429
81,572,130
82,483,004

2,289,281 12,425,425
2,114,134 12,222,506
2,255,284 14,890,491

49,439,856
48,239,466
48,553,647

3,296,810
3,025,918
2,945,165

12,935,058
15,970,106
13,838,418

3,698,462
3,229,920
4,270,795

15,006,570 12,911,726 9,824,089


13,990,320 13,484,014 9,873,373
13,490,654 13,556,482 10,127,138

Jul.
Aug.
Sep.

82,856,372
84,906,151
85,379,625

2,435,874 14,987,531
2,568,935 15,792,345
3,281,142 15,060,444

48,075,030
49,639,282
49,655,662

2,897,174
2,813,650
3,050,292

14,460,763
14,091,939
14,332,085

4,334,449
4,240,024
5,143,637

11,385,915 15,686,336 12,574,968


10,104,920 15,313,966 12,006,976
11,184,369 15,490,673 11,821,214

Oct.
Nov.
Dec.

85,371,336
87,964,711
97,348,898

4,076,373 14,553,229
5,215,075 14,929,410
14,584,865 16,389,333

50,434,362
51,066,967
51,490,348

3,586,152
3,408,430
3,999,878

12,721,221
13,344,829
10,884,474

4,687,101
5,804,808
659,544

11,576,984 15,462,791 11,594,630


12,380,247 16,480,667 11,246,462
15,677,697 14,690,901 11,043,470

2003 Jan.
Feb.
Mar.

93,687,750
94,321,424
95,679,461

9,274,453 15,345,813
10,519,717 15,153,266
9,100,151 16,252,209

53,454,170
53,126,095
53,706,898

3,766,528
3,560,442
3,657,216

11,846,786
11,961,905
12,962,987

4,587,789
4,660,784
5,202,987

13,961,683 14,916,066 11,232,991


12,069,836 14,546,290 10,876,800
12,738,690 16,127,551 12,345,906

Apr.
May
Jun.

95,272,211
99,625,785
98,428,856

7,691,835 15,968,137
6,958,573 17,484,532
6,661,718 16,225,431

55,122,090
56,660,526
58,129,642

3,403,649
4,245,949
3,850,663

13,086,501
14,276,205
13,561,401

3,720,120
4,926,068
6,049,478

12,909,488 15,818,228 11,825,996


12,334,541 15,674,070 11,671,462
11,031,203 18,019,941 13,808,696

Jul.
Aug.
Sep.

99,793,411
102,647,608
102,142,293

6,801,379 16,935,395
5,947,102 17,908,458
4,862,055 18,312,139

58,280,612
61,431,971
61,349,816

3,805,665
3,962,756
3,946,887

13,970,360
13,397,320
13,671,396

5,603,632
5,386,062
6,400,512

11,016,484 17,627,386 12,952,086


14,118,832 20,213,380 15,424,547
13,758,365 19,212,175 14,557,062

Oct. 108,650,250
5,955,091 19,167,465
63,868,596
Nov. 108,797,062
4,688,767 19,822,871
64,834,143
Dec. 111,807,374
5,172,830 20,160,706
66,892,518
1) Insurance companies included; 2) Certificates of deposit included.

3,823,752
3,873,172
4,299,811

15,835,347
15,578,109
15,281,509

7,094,870
8,795,666
1,097,956

18,649,768 19,465,974 14,670,454


14,380,909 19,512,608 13,917,705
18,103,878 18,767,603 12,980,734

National Bank of Romania

9,701,663
9,733,540
9,713,799

253

Annual
Report
2003

Statistical Section

16. AGGREGATE MONETARY BALANCE SHEET OF CREDIT INSTITUTIONS


(continued)
Period

254

- ROL millions; end of period DOMESTIC LIABILITIES (continued)


Government deposits (continued)
Capital accounts
Special & Unem- Deposits
Total
Own capital
other
ployfrom
Total
extrament
State
budbenefit Treasury
getary
fund
investaccounts
ments

of which:
Statutory
capital

Other liabilities
Supplementary Total
Net gains
capital
from forex
assets and
liabilities
revaluation

Other

1999
2000
2001
2002
2003

2,575,596 152,735
2,728,821 77,482
3,334,188 27,186
3,646,622
192
5,771,701
0

1,999
1,496
1,446
1,386
13,165

18,102,109
25,106,462
50,581,095
64,533,405
80,906,792

15,390,794
23,121,323
44,964,158
61,303,342
67,943,999

9,575,744
13,120,284
25,995,945
32,517,002
37,809,038

2,711,314
1,985,138
5,616,937
3,230,063
12,962,793

20,656,684
16,507,052
18,761,339
20,854,634
23,475,994

19,525
87,768
380,844
504,802
679,611

8,753,474
13,509,095
14,244,231
16,798,145
18,037,478

2000 Jan.
Feb.
Mar.

2,473,174 147,810
2,472,648 135,986
2,685,606 132,368

651,503
112,092
8,750

17,524,724
17,761,278
18,998,504

15,408,144
15,327,777
15,785,071

9,888,727
10,212,497
10,582,577

2,116,580
2,433,501
3,213,433

24,312,571
25,560,522
25,078,625

2,135
10,880
53,482

12,300,902
13,475,234
12,871,557

Apr.
May
Jun.

2,511,925 127,340
2,581,456 121,865
2,747,603 114,140

3,334
1,476
2,244

20,075,059
22,302,509
22,748,863

16,836,407
20,903,598
21,303,155

10,925,293
12,094,531
12,584,101

3,238,652
1,398,911
1,445,709

27,493,896
26,924,109
26,932,671

77,025
97,129
3,483

15,060,713
13,911,777
14,038,612

Jul.
Aug.
Sep.

2,710,276 107,430
2,678,775 102,128
2,927,525 95,464

196,980
1,413
8,330

23,926,920
23,892,642
24,640,420

22,453,108
22,354,980
23,020,438

12,919,703
12,007,036
12,560,510

1,473,812
1,537,662
1,619,982

27,612,798
28,426,404
29,809,462

2,886
600
336

14,519,251
14,559,797
15,822,401

Oct.
Nov.
Dec.

2,946,483
2,675,505
2,728,821

88,940
82,641
77,482

11,939
2,260
36,357

24,210,737
25,357,025
25,106,462

22,352,404
23,472,960
23,121,323

13,185,165
12,986,476
13,120,284

1,858,333
1,884,065
1,985,138

28,034,253
22,783,370
16,507,052

35,444
56,681
87,768

19,800,753
20,069,960
13,509,095

2001 Jan.
Feb.
Mar.

3,029,810
3,009,872
3,082,123

73,551
68,653
64,858

9,956
4,639
632

28,019,163
29,044,205
31,021,473

22,609,385
23,392,505
24,973,311

13,119,796
13,287,712
13,338,019

5,409,777
5,651,700
6,048,162

21,420,162
22,178,541
24,899,236

63,637
63,316
66,239

18,282,442
19,216,963
20,664,175

Apr.
May
Jun.

3,123,774
3,017,917
3,255,605

60,544
57,791
53,132

5,369
2,372
10,303

32,741,576
37,625,772
38,901,473

26,808,362
31,759,740
36,829,579

13,621,522
18,308,515
22,206,017

5,933,214
5,866,032
2,071,894

25,957,198
21,485,277
23,560,918

63,000
105,416
132,900

21,674,738
16,793,220
18,710,003

Jul.
Aug.
Sep.

3,727,083
3,161,229
3,347,867

48,071
43,325
39,303

2,733
3,220
240

42,716,706
43,976,393
45,260,403

40,501,307
41,642,033
42,905,187

23,883,375
24,285,213
24,671,163

2,215,399
2,334,359
2,355,216

22,362,337
21,884,578
23,460,098

174,657
284,782
186,597

17,408,649
16,982,712
18,885,853

Oct.
Nov.
Dec.

3,075,050
3,813,062
3,334,188

35,217
30,879
27,186

10,327
12,401
36,671

46,923,340
48,848,394
50,581,095

44,576,798
46,481,361
44,964,158

24,691,382
25,852,376
25,995,945

2,346,542
2,367,032
5,616,937

24,511,657
26,177,163
18,761,339

200,517
265,986
380,844

20,085,738
21,900,840
14,244,231

2002 Jan.
Feb.
Mar.

3,332,898
3,204,873
3,134,386

24,392
22,134
19,225

16,922
11,104
5,725

49,929,178
51,685,910
51,454,483

44,211,971
44,524,209
44,226,394

25,695,627
27,041,738
25,655,162

5,717,207
7,161,700
7,228,089

24,354,794
22,898,754
28,156,052

391,886
587,499
822,632

19,509,252
18,774,563
23,253,919

Apr.
May
Jun.

3,047,971
3,565,946
3,390,503

16,594
14,370
11,576

14,275
7,051
10,142

53,018,926
55,015,899
57,236,649

45,882,417
49,000,200
51,208,030

26,488,004
28,714,516
29,572,881

7,136,509
6,015,698
6,028,619

27,341,066
23,308,891
25,650,510

828,725
692,172
624,307

22,905,925
18,788,704
21,133,339

Jul.
Aug.
Sep.

3,071,916
3,265,559
3,637,492

9,066
6,339
3,787

7,051
2,377
9,320

57,856,726
59,308,465
60,294,668

51,850,655
53,288,313
54,270,528

30,197,228
30,380,732
30,443,226

6,006,070
6,020,151
6,024,140

25,122,530
25,928,153
28,585,055

609,630
722,572
898,416

20,581,216
20,931,380
23,748,346

Oct.
Nov.
Dec.

3,830,369
5,200,473
3,646,622

2,048
925
192

1,787
4,754
36,975

62,053,347
63,586,444
64,533,405

55,888,108
57,416,977
61,303,342

30,779,678
30,779,678
32,517,002

6,165,239
6,169,467
3,230,063

28,208,464
27,864,772
20,854,634

729,648
444,679
504,802

23,753,159
23,663,479
16,798,145

2003 Jan.
Feb.
Mar.

3,641,066
3,630,091
3,738,204

220
124
52

2,164
1,623
5,707

68,774,768
68,371,431
66,869,588

57,827,094
57,380,972
52,857,700

33,354,038
33,354,059
33,544,690

10,947,673
10,990,459
14,011,888

25,598,389
28,017,365
29,669,067

455,145
548,174
539,011

20,859,182
22,711,961
24,512,216

Apr.
May
Jun.

3,950,777
3,977,698
4,187,397

148
160
37

3,594
12,993
13,961

65,330,936
67,279,862
69,272,245

53,673,522
55,605,978
57,529,005

33,685,869
35,152,068
35,596,001

11,657,414
11,673,885
11,743,241

29,939,632
30,282,007
32,047,792

564,212
615,003
590,862

24,509,039
24,734,265
26,813,847

Jul.
Aug.
Sep.

4,643,488
4,759,305
4,621,318

77
83
33

6,068
8,390
4,103

71,155,993
73,250,213
74,692,181

58,456,195
60,426,492
61,834,640

35,938,965
35,947,122
36,104,888

12,699,798
12,823,722
12,857,541

30,078,718
32,005,882
34,776,926

550,733
599,996
626,337

25,356,689
27,039,498
29,490,785

Oct.
Nov.
Dec.

4,760,362
5,563,155
5,771,701

198
134
0

2,935
6,311
22,788

77,524,597
78,226,830
80,906,792

64,629,721
65,477,159
67,943,999

36,770,063
36,774,376
37,809,038

12,894,877
12,749,671
12,962,793

33,753,066
36,133,182
23,475,994

682,320
591,004
679,611

28,448,871
30,541,607
18,037,478

National Bank of Romania

Annual
Report
2003

Statistical Section

17. AVERAGE INTEREST RATES APPLIED BY CREDIT INSTITUTIONS


(ROL TRANSACTIONS)
Period

Lending rate
non-bank clients
(including
government)

average

- percent per annum Deposit rate


non-bank customers
interbank
(including
transactions
government)
(including relations
with NBR)
45.4
63.4
32.7
36.0
26.4
32.6
18.7
22.7
10.8
16.8

1999
2000
2001
2002
2003

61.2
46.2
38.8
28.8
20.4

65.9
53.5
45.1
35.2
25.4

interbank
transactions
(including relations
with NBR)
46.2
31.0
29.1
21.8
15.0

2000 Jan.
Feb.
Mar.

55.8
55.2
54.8

63.4
62.9
63.7

39.5
38.4
35.8

42.3
42.2
41.4

41.8
41.6
41.2

48.1
55.0
44.2

Apr.
May
Jun.

51.5
48.9
43.6

60.2
57.0
50.5

30.2
29.4
29.3

37.0
33.7
30.1

37.1
34.0
29.9

34.9
30.9
32.8

Jul.
Aug.
Sep.

43.2
40.9
39.8

51.2
47.3
45.4

26.2
27.0
28.8

29.5
27.1
26.8

29.4
27.0
26.4

29.9
27.3
33.2

Oct.
Nov.
Dec.

42.2
41.1
42.6

48.2
47.2
49.2

30.4
29.8
30.6

29.6
28.6
28.9

29.4
28.2
28.6

32.5
33.9
33.2

2001 Jan.
Feb.
Mar.

42.6
40.3
43.5

49.2
46.0
50.3

30.9
29.0
32.8

29.3
27.5
29.9

29.1
27.0
29.5

32.7
33.9
35.3

Apr.
May
Jun.

42.0
42.7
40.3

48.1
49.4
46.8

31.0
30.8
30.3

29.4
29.3
27.9

28.7
28.9
27.7

41.2
38.0
31.6

Jul.
Aug.
Sep.

38.6
37.7
37.0

45.2
44.1
42.8

29.2
28.9
29.0

27.2
25.5
24.4

27.0
25.4
24.2

31.1
28.0
29.9

Oct.
Nov.
Dec.

36.3
34.5
34.7

42.4
39.9
40.6

27.4
26.7
26.8

24.7
23.6
23.7

24.6
23.5
23.4

28.4
28.1
29.4

2002 Jan.
Feb.
Mar.

34.4
33.2
33.4

40.4
39.1
39.6

26.4
25.1
25.3

23.5
22.8
23.7

23.3
22.7
23.5

28.7
25.3
28.8

Apr.
May
Jun.

32.3
32.1
30.5

37.9
38.1
36.6

25.8
25.0
23.8

21.9
21.9
20.5

21.7
21.7
20.3

26.2
25.8
24.5

Jul.
Aug.
Sep.

29.0
28.0
26.0

35.0
34.6
32.5

22.4
21.4
19.7

18.5
17.9
16.5

18.4
17.8
16.4

19.3
20.3
19.8

Oct.
Nov.
Dec.

25.1
23.9
23.1

32.0
30.3
28.9

18.5
17.3
17.3

15.9
14.6
13.0

15.9
14.5
12.8

18.1
17.9
16.7

2003 Jan.
Feb.
Mar.

22.0
20.2
20.5

27.9
25.9
25.9

16.4
14.4
14.4

12.5
11.9
11.6

12.3
11.7
11.4

16.5
16.4
18.3

Apr.
May
Jun.

19.6
19.9
19.3

23.8
25.2
24.6

14.9
15.1
13.8

10.4
10.0
10.4

10.1
10.0
10.2

17.4
11.3
15.9

Jul.
Aug.
Sep.

19.9
20.0

25.0
25.6

15.2
14.2

10.6
10.2

10.5
10.1

15.9
15.8

20.2
20.7
20.5
21.3

24.8
25.6
25.3
25.7

15.3
15.6
14.8
16.0

10.5
11.3
11.3
11.5

10.3
11.0
11.1
11.2

17.4
18.0
18.1
19.0

Oct.
Nov.
Dec.

National Bank of Romania

average

49.1
33.0
26.7
18.8
11.0

255

Annual
Report
2003

Statistical Section

18. AVERAGE INTEREST RATES APPLIED BY CREDIT INSTITUTIONS


current assets in ROL
banking sector
1-3M
3-6M 6-12M
18.7
25.7
28.4
18.1
23.2
22.2

2003 May
Jun.

total
15.1
13.8

1M
14.7
13.1

Jul.
Aug.
Sep.

15.2
14.2
15.3

14.9
11.9
13.5

18.2
19.4
19.3

24.0
22.6
22.1

Oct.
Nov.
Dec.

15.6
14.8
16.0

13.1
12.5
14.4

20.3
20.3
21.5

20.8
19.7
20.0

2003 May
Jun.

total
29.4
29.1

1M
21.2
28.3

1-3M
24.4
29.7

Jul.
Aug.
Sep.

28.3
28.1
27.6

26.6
26.4
28.5

27.3
30.8
29.6

29.5
29.7
30.1

Oct.
Nov.
Dec.

28.2
27.5
27.8

28.8
28.9
29.5

31.2
27.9
29.2

30.9
31.8
29.6

1-5Y
23.2
22.5

>5Y
x
x

total
14.5
14.9

1M
5.3
14.4

18.5
18.2
17.7

16.6
16.6
16.1

x
x
x

14.8
15.2
17.2

17.5
15.3
15.5

16.4
17.4
14.6

12.6
9.2
19.8

15.3
15.6
16.5

14.6
15.3
17.4

19.4
19.5
18.7

20.0
18.3
18.9

16.8
17.6
18.5

x
x
x

18.5
19.3
20.3

16.3
18.0
15.7

20.9
19.5
20.4

22.0
22.0
16.4

16.5
16.2
17.3

18.9
19.8
20.9

20.2
20.8
21.1

individuals
3-6M 6-12M
30.7
30.0
30.1
30.0

1-5Y
32.0
30.7

>5Y
24.3
25.5

total
24.5
23.6

1M
22.1
21.3

legal entities
1-3M
3-6M 6-12M
26.8
25.8
24.8
24.6
24.3
24.5

1-5Y
23.7
22.5

>5Y
22.1
22.1

30.0
30.4
30.0

29.9
29.5
27.9

24.2
24.1
22.5

24.2
25.1
23.8

20.3
28.8
21.8

26.9
26.1
26.7

25.2
25.0
24.5

25.0
25.0
24.6

23.8
23.2
22.4

21.1
21.5
24.7

31.0
28.6
29.6

28.4
27.7
28.0

22.8
22.7
22.8

24.4
24.2
24.6

25.6
24.9
26.5

26.7
26.7
27.2

24.9
24.4
25.2

24.6
24.5
25.3

22.5
22.5
21.6

24.4
24.5
25.3

time liabilities in ROL

256

- percent per annum government sector


1-3M
3-6M 6-12M
1-5Y
>5Y
5.2
10.3
15.5
14.7
20.2
22.8
10.0
16.0
14.4
19.9

banking sector
1-3M
3-6M 6-12M
17.7
29.0
29.0
17.3
26.6
27.9

2003 May
Jun.

total
17.8
17.6

1M
17.2
17.6

Jul.
Aug.
Sep.

18.0
18.6
18.7

18.4
18.5
18.7

17.8
18.7
19.1

6.2
22.6
20.7

Oct.
Nov.
Dec.

19.5
19.5
20.1

19.2
19.0
19.6

19.7
19.6
19.8

20.6
20.5
20.7

2003 May
Jun.

total
13.2
13.1

1M
10.8
11.0

1-3M
13.9
13.8

Jul.
Aug.
Sep.

13.6
13.2
13.4

12.6
12.3
12.7

14.1
13.4
13.5

- percent per annum government sector


1-3M
3-6M 6-12M
1-5Y
>5Y
14.6
22.9
x
x
2.1
16.9
17.1
24.2
x
2.0

1-5Y
x
x

>5Y
x
x

total
9.1
13.3

1M
5.3
4.8

29.2
30.7
22.8

x
x
17.4

x
x
x

13.7
17.1
16.9

12.1
12.8
13.2

15.8
13.4
12.7

14.0
14.9
14.0

23.4
11.0
13.0

x
17.3
17.0

2.0
2.0
2.0

20.9
20.0
20.7

22.9
24.1
24.6

x
x
x

17.6
17.8
19.1

13.8
14.1
13.9

14.1
14.7
15.2

13.3
14.9
16.3

14.3
13.9
12.0

17.8
17.9
19.2

2.0
2.0
2.0

individuals
3-6M 6-12M
17.1
14.7
15.8
14.2

1-5Y
16.5
15.7

>5Y
x
x

total
11.5
11.8

1M
10.2
10.6

legal entities
1-3M
3-6M 6-12M
13.2
16.7
14.4
13.6
16.0
15.8

1-5Y
21.5
15.9

>5Y
27.2
26.1

12.6
13.3
14.0

x
x
x

13.2
13.0
13.3

12.7
12.5
12.8

15.8
15.3
14.8

14.2
14.0
13.9

13.8
13.5
14.3

15.8
15.4
15.2

16.4
15.8
15.4

12.3
12.5
12.3

14.6
17.0
17.1

Oct.
Nov.
Dec.
Legend

13.6
14.3
14.9
14.2
14.5
x
13.7
14.5
15.2
14.1
14.1
13.9
14.3
14.7
13.8
15.2
x
13.8
15.0
15.9
14.1
14.2
14.4
14.8
15.2
14.2
15.7
x
14.3
15.9
16.3
14.6
14.8
1M: less than one month; 1-3M: 1-3 months; 3-6M: 3-6 months,
6-12M: 6-12 months, 1-5Y: 1-5 years, >5Y: more than 5 years; total: average interest rate on all maturities.

16.1
15.3
15.1

13.0
12.9
13.1

17.1
17.1
17.1

Note:

Starting May 2003, interest rates have been calculated according to NBR Norm No.2/21 February 2003.

National Bank of Romania

Annual
Report
2003

Statistical Section

18. AVERAGE INTEREST RATES APPLIED BY CREDIT INSTITUTIONS


current assets in EUR
banking sector
1-3M
3-6M 6-12M
2.6
10.5
x
2.3
5.1
3.6

2003 May
Jun.

total
4.7
2.1

1M
5.2
1.9

Jul.
Aug.
Sep.

2.3
2.1
2.1

2.2
2.0
2.1

2.2
2.2
2.1

2.5
2.5
2.4

Oct.
Nov.
Dec.

2.2
2.1
2.2

2.1
2.0
2.1

2.1
2.1
2.1

2.3
2.2
2.3

2003 May
Jun.

total
8.6
9.2

1M
9.7
9.6

1-3M
3.6
4.4

Jul.
Aug.
Sep.

8.9
9.2
9.3

10.1
9.9
8.3

10.0
4.5
6.9

9.2
5.9
7.3

Oct.
Nov.
Dec.

9.3
9.1
9.9

8.7
8.3
10.6

7.1
8.0
8.8

7.8
7.0
7.8

- percent per annum government sector


1-3M
3-6M 6-12M
1-5Y
>5Y
x
4.3
4.8
9.3
9.8
5.4
6.2
6.9
7.8
8.6

1-5Y
8.8
8.8

>5Y
3.9
3.7

total
9.4
8.3

1M
x
5.8

2.7
2.7
2.6

7.3
6.8
6.5

4.7
4.7
4.5

8.3
8.7
7.9

4.5
x
2.7

3.9
5.9
6.5

4.2
7.5
5.7

4.1
6.8
6.9

7.6
9.1
8.0

8.8
8.5
7.8

2.7
2.6
2.7

6.2
6.4
5.5

4.6
4.3
4.2

8.3
7.9
8.3

8.8
5.2
8.5

6.6
7.0
5.7

5.9
5.7
6.0

8.9
8.7
8.9

8.4
8.1
8.5

8.1
7.6
7.9

individuals
3-6M 6-12M
6.3
6.7
6.5
10.4

1-5Y
8.8
9.0

>5Y
8.7
9.3

total
6.8
6.7

1M
3.9
4.2

legal entities
1-3M
3-6M 6-12M
4.1
5.3
5.6
5.5
4.8
5.5

1-5Y
8.1
7.8

>5Y
8.1
7.1

11.0
10.3
9.9

8.8
9.7
9.7

8.9
8.9
9.1

7.0
6.9
6.9

3.9
4.3
3.8

5.8
5.1
4.8

5.9
5.9
6.1

6.4
6.2
6.2

7.9
7.9
7.8

7.8
7.3
7.5

10.3
9.4
9.8

9.4
9.3
10.8

9.2
9.0
9.3

6.9
6.6
6.7

4.0
3.9
4.2

4.8
4.8
4.9

6.3
6.3
6.4

6.2
6.0
6.1

8.1
7.6
7.6

6.8
6.4
6.8

time liabilities in EUR


banking sector
1-3M
3-6M 6-12M
2.0
3.3
5.6
2.4
3.5
5.3

2003 May
Jun.

total
3.6
3.7

1M
2.2
2.4

Jul.
Aug.
Sep.

3.7
3.3
3.1

2.3
2.3
2.2

2.3
2.3
2.3

4.3
5.6
4.8

Oct.
Nov.
Dec.

3.1
3.0
3.2

2.3
2.2
2.4

2.3
2.3
2.5

2.2
2.8
2.4

2003 May
Jun.

total
2.6
3.1

1M
1.4
2.1

1-3M
2.6
2.6

Jul.
Aug.
Sep.

2.8
2.6
2.6

2.5
2.3
2.3

2.8
2.6
2.5

- percent per annum government sector


1-3M
3-6M 6-12M
1-5Y
>5Y
1.8
1.8
x
4.8
x
1.5
1.9
x
x
x

1-5Y
4.5
4.4

>5Y
4.5
4.9

total
1.8
1.6

1M
1.8
1.5

5.3
5.1
4.7

4.4
3.8
3.7

4.0
3.5
3.5

1.5
1.4
1.4

1.5
1.4
1.4

1.5
1.4
1.4

1.8
1.5
1.4

x
x
x

x
x
x

x
x
x

3.6
3.5
3.6

3.7
3.9
3.7

3.5
3.4
3.8

1.4
1.4
1.5

1.4
1.4
1.5

1.4
1.4
1.4

1.5
1.4
1.5

x
x
x

x
x
x

x
x
x

individuals
3-6M 6-12M
2.6
3.7
2.5
3.4

1-5Y
8.9
5.6

>5Y
x
9.3

total
2.1
2.6

1M
1.7
1.9

legal entities
1-3M
3-6M 6-12M
2.0
2.9
3.5
2.3
2.8
3.3

1-5Y
6.4
6.1

>5Y
2.1
6.7

3.5
3.3
3.4

x
x
x

2.3
2.3
2.3

1.9
2.0
1.9

2.9
2.6
2.5

3.4
3.4
3.3

6.1
5.7
5.4

3.2
3.2
3.6

Oct.
Nov.
Dec.
Legend

2.3
2.6
2.7
3.2
3.3
x
2.0
2.0
2.4
2.7
2.3
2.4
3.0
3.1
3.7
4.0
x
1.8
3.3
2.5
3.0
2.4
2.4
2.7
2.9
3.3
3.6
x
1.9
2.3
2.4
2.8
2.4
1M: less than one month; 1-3M: 1-3 months; 3-6M: 3-6 months,
6-12M: 6-12 months, 1-5Y: 1-5 years, >5Y: more than 5 years; total: average interest rate on all maturities.

3.3
3.2
3.3

5.0
4.9
5.2

3.4
3.6
3.6

Note:

Starting May 2003, interest rates have been calculated according to NBR Norm No.2/21 February 2003.

National Bank of Romania

2.5
2.4
2.7

3.6
3.5
3.3

2.1
2.0
2.2

257

Annual
Report
2003

Statistical Section

18. AVERAGE INTEREST RATES APPLIED BY CREDIT INSTITUTIONS


current assets in USD
banking sector
1-3M
3-6M 6-12M
1.6
1.4
3.2
2.7
2.0
x

2003 May
Jun.

total
1.9
0.9

1M
1.9
0.8

Jul.
Aug.
Sep.

1.0
1.0
1.0

0.9
0.9
0.9

1.5
2.1
2.1

2.7
3.2
3.0

Oct.
Nov.
Dec.

1.0
0.9
0.8

0.9
0.8
0.8

1.5
2.8
3.0

3.6
2.5
2.2

2003 May
Jun.

total
8.8
9.1

1M
8.0
7.6

1-3M
2.6
7.1

Jul.
Aug.
Sep.

9.4
9.1
9.3

6.8
5.5
5.3

10.2
3.3
10.3

5.5
6.5
6.4

Oct.
Nov.
Dec.

9.3
9.3
9.5

4.6
7.6
7.9

10.7
9.8
10.2

9.2
8.1
8.5

1-5Y
4.6
4.6

>5Y
2.2
2.0

total
4.6
4.2

1M
1.1
4.6

2.0
2.2
2.0

4.7
3.2
3.4

2.0
1.8
1.7

4.9
5.9
5.1

4.9
4.9
4.8

3.9
x
4.2

5.1
8.5
4.4

5.2
4.9
4.6

4.7
6.8
5.6

x
x
4.2

2.9
3.2
3.0

3.3
3.2
3.6

1.7
1.7
1.8

5.1
5.0
4.7

4.7
4.6
4.8

x
x
x

4.8
4.7
4.8

3.9
3.3
2.5

5.6
5.4
4.6

4.5
4.4
4.1

individuals
3-6M 6-12M
2.4
6.5
0.9
9.2

1-5Y
9.4
10.3

>5Y
8.7
8.6

total
6.1
5.2

1M
2.6
1.8

legal entities
1-3M
3-6M 6-12M
3.7
6.6
6.2
4.0
4.2
4.9

1-5Y
6.9
6.1

>5Y
7.1
6.0

9.4
8.5
7.9

10.7
10.1
10.2

8.9
8.7
9.0

5.8
5.9
5.8

2.8
4.4
3.5

4.3
4.7
4.6

5.6
5.8
5.6

5.6
5.4
5.2

6.6
6.6
6.6

6.9
6.8
6.3

7.8
7.9
8.7

10.4
10.3
10.8

9.0
8.9
9.2

5.7
5.7
5.8

3.5
5.0
5.3

4.7
3.8
4.2

5.9
5.8
6.0

5.1
5.1
5.0

6.4
6.2
6.3

6.5
6.3
6.3

time liabilities in USD

258

- percent per annum government sector


1-3M
3-6M 6-12M
1-5Y
>5Y
0.0
0.6
4.9
5.2
5.2
0.9
0.6
4.9
4.5
x

banking sector
1-3M
3-6M 6-12M
1.4
1.9
1.8
1.4
2.1
1.9

2003 May
Jun.

total
2.6
2.5

1M
1.4
1.4

Jul.
Aug.
Sep.

2.5
2.4
2.3

1.3
1.3
1.4

1.5
1.4
1.3

2.2
2.4
2.4

Oct.
Nov.
Dec.

2.3
2.3
2.4

1.4
1.3
1.4

1.5
1.7
1.6

2.6
2.0
3.2

2003 May
Jun.

total
1.8
2.0

1M
0.9
1.2

1-3M
1.5
1.7

Jul.
Aug.
Sep.

1.9
1.9
1.9

1.3
1.3
1.3

1.7
1.7
1.7

- percent per annum government sector


1-3M
3-6M 6-12M
1-5Y
>5Y
2.7
3.6
x
x
x
2.1
1.9
x
x
x

1-5Y
2.5
2.8

>5Y
3.7
3.6

total
1.4
1.5

1M
1.0
1.1

1.3
1.4
1.3

2.4
2.2
2.1

3.9
3.6
3.5

1.3
1.3
1.3

1.2
1.2
1.3

1.5
1.5
1.4

x
x
x

x
x
x

x
x
x

x
x
x

1.4
1.3
2.0

2.1
2.4
2.4

3.6
3.5
3.3

1.2
1.2
1.3

1.2
1.2
1.3

1.3
1.3
1.3

x
x
x

x
x
x

x
x
x

x
x
x

individuals
3-6M 6-12M
2.2
3.2
1.8
2.9

1-5Y
4.8
3.5

>5Y
x
3.9

total
1.6
1.6

1M
1.2
1.2

legal entities
1-3M
3-6M 6-12M
1.9
2.4
3.5
1.9
2.0
3.2

1-5Y
5.5
4.1

>5Y
1.7
2.2

2.6
3.0
2.9

x
x
x

1.5
1.5
1.5

1.1
1.2
1.2

1.8
1.7
1.9

3.1
3.0
2.7

2.0
1.7
1.8

2.4
2.2
2.1

2.9
2.9
2.8

3.7
3.5
3.5

2.0
1.8
1.6

Oct.
Nov.
Dec.
Legend

1.4