NOTA - Banca Naţională a României ( ) · PDF fileFESAL Financial and Enterprise...

Nat iona l Bank o f Roman ia

ANNUAL REPORT

1998

ISSN 1453 – 3928

Note

1998 Annual Report was examined and approved by the Board ofDirectors of the National Bank of Romania on 23 June 1999 and was

forwarded to the Parliament of Romania in accordance with theprovisions of the National Bank of Romania Act.

Some of the data for the period covered are provisional and will beupdated as appropriate in the subsequent issues.

Sources of data are mentioned when institutions other than theNational Bank of Romania supplied data.

The drafting, English version and technical co-ordination of the 1998Annual Report were carried out by the Monetary and Foreign

Exchange Policy General Department.

National Bank of Romania, 25 Lipscani Street, sector 3, postal code 70421Phone No.: 40 1 312 43 75; Fax No.: 40 1 312 62 61

R O M A N I A

- Overview -

1. Location ♦ Romania is situated in the south-eastern part of Central Europe,inside and outside the Carpathians range, on the lower course of theDanube (1,075 km) and has exit to the Black Sea (coast line 194km);

♦ Boundaries: 3,150 km;♦ Neighbouring countries: Hungary, Yugoslavia, Bulgaria, Republic of

Moldova, and Ukraine.

2. Area ♦ 238,391 sq. km (the twelfth in Europe);♦ Land use: agricultural land 62 percent (of which 39 percent arable

land), forest 27 percent, other 11 percent.

3. Population ♦ Total: 22.5 million inhabitants - July 1, 1998 (the ninth in Europe); ♦ Density: 94.4 inhabitants/sq. km;♦ Urban area: 54.9 percent;♦ Ethnic structure: Romanians 89.5 percent, Hungarians 7.1 percent,

other 3.4 percent;♦ Administrative organisation: 42 counties, including Bucharest

Municipality; 263 towns (83 municipalities) and 2,685 communes;♦ Capital: Bucharest (2 million inhabitants);♦ Official language: Romanian.

4. Status ♦ Republic;♦ Legislative body: Parliament (Senate and Chamber of Deputies);♦ Executive body: head of government - prime-minister (appointed by

the President, following results of general elections); ♦ President elected by universal vote for a four-year mandate.

5. Currency ♦ Romanian leu, fractional coin - ban;♦ Current account convertibility of the leu;♦ Exchange rate is set in the interbank market on a daily basis.

ABBREVIATIONS

ASAL Agricultural Sector Adjustment LoanBET Bucharest Exchange Trading IndexBIS Bank for International SettlementsBSE Bucharest Stock ExchangeCEFTA Central European Free Trade Agreementcif cost, insurance and freightCIS Commonwealth of Independent StatesCPI Consumer Price IndexCRIB Credit Risk Information BureauEBRD European Bank for Reconstruction and DevelopmentECB European Central BankECU European Currency UnitEMU Economic and Monetary UnionERM Exchange Rate MechanismESCB European System of Central BanksEU European UnionFED Federal Reserve SystemFESAL Financial and Enterprise Structural Adjustment Loanfob free on boardG - 7 Group of the 7 Most Industrialised NationsGDP Gross Domestic ProductIBEC International Bank for Economic Co-operationIBRD International Bank for Reconstruction and DevelopmentIFC International Financial CorporationIIB International Investment BankIMF International Monetary FundMIGA Multilateral Investment Guarantee AgencyNBR National Bank of RomaniaNCS National Commission for StatisticsOECD Organisation for Economic Co-operation and DevelopmentOPEC Organisation of Petroleum Exporting CountriesOTC Over the CounterPIB Payments Incident BureauPPI Producer Price IndexRASDAQ Romanian Association of Securities Dealers Automated

Quotation SystemSDR Special Drawing RightsSOF State Ownership FundSPAL Social Protection Adjustment LoanVAT Value Added Tax

Chapter I. Overview of the main economic, financial, monetary and foreign exchange policies in 1998

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Chapter I. Overview of the main economic, financial, monetary, and

foreign exchange policies in 1998

1. Developments in the Romanian economy in 1998 accurately reflected the bunching ofimbalances caused by sluggish reforms and the sometimes-contradictory policiesfollowed by the government. Outbreak of the domestic disequilibrium in late 1998 wasalso due to worsening external conditions and to pressures stemming from the foreigndebt service that had built up during the 90s. Although the manoeuvring margin of theRomanian authorities in conducting the economic policy narrowed, its overall approachimproved conspicuously beginning with the last quarter of the reviewed year. Rigorousand straightforward implementation of such an approach starting 1999 should help topreclude a crisis of menacing proportions in the economy and in the entire Romaniansociety and pave the way for a sound economic growth in the long run.

2. Further efforts made in 1998 by the Romanian Government and the National Bank ofRomania to liberalise and disengage the state from economic activity were aimed at amore effective market and harmonisation with the general regulatory frameworkgoverning the advanced economies. In this respect, a clear proof is abidance byprovisions of Article VIII of the IMF’s Articles of Agreement regarding full current accountconvertibility. However, the determination to liberalise economic activity, albeit positiveoverall, failed to produce the looked-for results, particularly because macroeconomicpolicies were not properly backed by the much needed microeconomic adjustment andreform. Therefore, liberalisation of regulations enabled greater access to resourceschiefly for the loss-making companies and industries on which budget constraintssoftened. The process deteriorated because the authorities had repeatedly given way topressures exerted by various economic sectors, on the one hand, and the worseningexternal environment, on the other. The joint action of various factors did not only end insub-optimal conditions, but in a setback and weakening structures of the Romaniansociety. To keep up the right macroeconomic co-ordinates and step up microeconomicrestructuring and privatisation appears to be the only way out of the recession.

3. The most remarkable accomplishment of the government’s economic policy in thereported year was the substantial cut in inflation rate. At end-1998, the rise in consumerprices ran at 40.6 percent from more than 151 percent in 1997. Inflation rate was lowerthan the estimates at the beginning of the year and circumscribed to levels deemedworldwide as unlikely to induce major distortions to resource allocation. Nevertheless,Romania is still a laggard among the countries in transition as far as inflation isconcerned. In addition, the high costs incurred by curbing of inflation stemmed widelyfrom inconsistencies in drafting and implementing the macro- and microeconomic policymix. Gross domestic product dropped by 7.3 percent in 1998 while the current accountdeficit exceeded USD 3 billion to reach 7.9 percent share-to-GDP on the back of everrising imports and falling exports.


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4. The economic woes cannot be dissociated from the build-up of a host of problemswithin the Romanian society; year-after-year delay in dealing with these problems couldend in a deadlock. Among these issues, which are inevitably interlocked, utmostimportance for achieving economic growth is attached to the following:

4.1. Legislative inconsistency. The Romanian legislation gathers together regulationsdating back to the inter-war period and in the age of the centrally planned economyco-habiting with laws in line with current western standards. Sometimes, the measures –albeit appropriate in principle – disregard the available resources, entailing persistentindecision, inconsistencies, and ever more frequent amendments to the law.

4.2. Confused ownership regime. With the snail’s-pace and half-hearted privatisationcoupled with the not yet settled land retrocession, the state continues to be the majorityowner in industry as well as in other key economic sectors that indulge inmismanagement and dismal results.

4.3. Contractual and financial indiscipline perpetuates such a behaviour that impairs theground rules of a market economy. By putting forward observance of democratic rightsof both natural and legal entities, our country has reached such a stage when the debtor,even a dishonest one, is defended to the detriment of the creditor. The onus of proof liesin the tediously long lawsuits that end with rulings that actually put the creditor at adisadvantage even if he wins the case, and result in the ongoing contractual and defaultin payment since the delinquent debtors are not in the least penalised properly. Thisstate of affairs depresses the very development of the mechanisms that lie at the root ofa smooth functioning market economy, in which contractual and financial discipline shallby no means be infringed upon.

4.4. The lingering establishment of institutions specific to the market economy. Both theBucharest Stock Exchange and the RASDAQ experience thin trading and play amarginal part in resource allocation. Commodity exchanges are even duller, thusdeterring production – the lack of a grain exchange in Romania is a case in point as thegrain market is further segmented and short of transparency.

5. The imbalances that built up in the course of time and protraction of the abovementioned hardships prompted the steep deterioration of some main macroeconomicindicators. Hence, gross saving rate stood at below 10 percent of GDP, a level totallyinsufficient to bolster resumption of economic growth. The following unfavourabledevelopments contributed to this state of affairs:

5.1. The worsening behaviour of companies, particularly those in state-run industries thathave switched from the investment-accumulation function to the function of ensuringresources to cover mounting wage costs.

5.2. The deteriorating social fabric in the wake of the decline in working population –especially across the categories that contribute directly to budget revenues – and the


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simultaneous increment in the share of pensioners, unemployed and scholarshiprecipients whose incomes are granted by way of redistribution. The unsustainablesituation of more pensioners than employees persisted throughout 1998; obviously, thepension scheme, unbearable neither by weak economies – such as Romania’s – nor bymuch more robust ones, is to blame.

5.3. Public authorities’ consumption, which in turn took an abnormal uptrend. If thepublic authorities’ consumption averaged less than 10 percent of GDP in the last fewyears of the centrally-planned economy in Romania, this indicator rose steadily as of1990 to reach nearly 15 percent of GDP in 1998. The higher-than-expected 60 percentrise in public consumption under market-determined conditions, compared with thelevel recorded by the former command economy, boosted consumption and crimpedsaving.

6. Households are now the one and only social segment that continues to save.Household savings in both lei and foreign exchange rose 59.9 percent to lei 41,861.6billion and became one of the few available resources amid scarcity of other funding forthe economy. In an attempt to take hold of these resources several competitors areinvolved, such as the government (to finance the public deficit), companies (to ensurefunding for investment and current activity), and the banks (to service the external debtfalling due). This development was responsible for further lifting real interest rates andperilously containing the capacity for domestic financing of investment, which mayundermine the sound economic growth in the decades ahead.

7. Domestic absorption for consumption and investment that was closely linked to thedrop in accumulation rate relied heavily on external resources. The deficit build-upadded to growing external constraint, which became one of the basic factors to be takeninto account since the latter half of 1998 when mapping out the economic policy for theyears to come. The reasons underlying the above mentioned developments he following:

7.1. Wide trade balance deficit. Trade balance deficit (in fob prices) topped out at USD2.6 billion as a result of higher imports and lower exports, as follows:

� imports were 4.8 percent higher. The upturn in imports is not in itself a bad thingprovided it comes along with a rise in both domestic output and exports. However,imports increased in 1998, the sharp decline in output notwithstanding. Thisdevelopment was due to the following: soft budget constraints on the enterprises thatmade further imports above the amount of products they could have possibly sold;lower customs protection, particularly to members of CEFTA (to which Romaniaadhered on 1 July 1997) but also to other countries following the cut in customsduties; escalating consumer demand as a result of hike in real wages despite shortsupply of domestic goods and services; and real appreciation of the leu since growthrate of wages outpaced nominal depreciation of the local currency;


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� exports were down 1.6 percent. It is even more worrying that, in 1998, Romaniaexported virtually the same products it was exporting ten years ago, namely energy-intensive goods with low value added and/or of low technical nature, for which pricesare low and competition fierce. Beginning 1995, exports seem to have stuck toaround USD 8 billion on a yearly basis, due mostly to the snail’s-pace of restructuringof the real sector. In the reported year, the ever decreasing competitiveness ofRomania’s exports owing to higher domestic costs, wage costs in particular, realappreciation of domestic currency and cut-throat competition from the Asiancountries, the currencies of which weakened in the aftermath of the 1997 crisis,added to the already known problems.

7.2. Widening of the current account deficit due mostly to the developments in the tradebalance. Current account deficit widened steadily in spite of falling output and realdepreciation of the leu in late 1998 to reach USD 3 billion, almost USD 1 billion above theinitially estimated level. Consequently, the foreign reserves decreased more than it hadbeen estimated, thereby affecting the drawing up of the foreign exchange programmefor 1999.

7.3. Limited capacity to attract external financing. Autonomous capital inflows and non-debt generating capital flows rose conspicuously over the last two years. Medium- andlong-term external debt remained thus virtually unchanged in the said period, reachingUSD 9,081 million, i.e. 23.8 percent share-to-GDP, up by merely USD 497 million year onyear. In late 1998, autonomous capital inflows to Romania plummeted and even reversedmostly because of the financial meltdown in Russia; moreover, the Romanian authoritiesfailed to stay in the international capital markets during 1998, proving the lack of aresolute external financing strategy.

7.4. Larger external debt service stemming from borrowings made in 1991-96 fallingdue, thereby magnifying the external constraints for Romania. Although external debtservicing will reach menacing proportions no sooner than 1999, the international capitalmarket assesses the quality of strategies pursued by each country long before due dateand reacts glaringly to such strategies.

8. Build-up of the already mentioned problems was additionally spurred by the lukewarmresponsiveness of government’s policies that had been pursued for some time past. Bymid-1998, developments in this field showed the following features:

8.1. Off-course veering of economic policy mirrored by slow privatisation, quasi-absence of measures to restructure the economy and hike in real wages in contrast tolower productivity and fall in production.

8.2. Major uncertainties on the political scene and confusing and conflicting signals onthe future direction of economic policy. Guidelines drawn up by both governmentofficials and members of the ruling parties were praiseworthy but they fell short of


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economic and financial support. The emphasis was on achieving fiscal relaxation bycutting government revenues and stepping up government expenditures, at odds withthe resources available to the economy and ever worsening external conditions.

9. An improvement emerged in the policies led by the authorities in late 1998 under themounting external constraints. Nonetheless, the depth of the imbalances and everworsening external conditions delayed the outcomes of the new approach, the firstnotable effect of which was an additional drop in output, inevitably deriving fromresumption of sustainable policies. The key measures taken, albeit painful andunpopular, but justified by the economic predicament, were the following:

9.1. Fast-track privatisation coupled with measures to cut losses in the state-run sector,mining in particular.

9.2. Abolition of the automatic wage indexation policy during the last quarter of the year.The then-ruling bias to raise real wages regardless of financial results was thereforesuppressed.

9.3. Further efforts to keep inflation rate on course to meet target by joiningmacroeconomic, i.e. monetary and fiscal, policies with structural measures. The impacton domestic prices, which might have been exerted by domestic currency depreciationbecause of the crisis in Russia, was thus efficiently counterpoised. The components ofthe economic policy mix, comprising the policies to be conducted by the National Bankof Romania in compliance with the law, should be analysed within the previouslymentioned general framework.

10. Monetary policy focused on reducing inflation rate to meet the target envisaged bythe government’s programme for 1998. The most remarkable gains of such an approachwere the following:

10.1. Control over liquidity and monetary aggregates by using indirect means alone.Therefore, the evidence shows the successful use of the monetary anchor for keeping atight reign on inflation, even in an economy as that of Romania, plagued by majordisequilibria and a fragile banking system.

10.2. A good co-operation between the National Bank and the Ministry of Finance thathelped to control liquidity.

10.3. Smooth-running of both money and forex markets the escalating disequilibrianotwithstanding, thus enabling fine-tuning of the monetary indicators. However,functioning of a secondary market for government securities is still in its early days.

11. Foreign exchange policy made good progress in early 1998 when Romania formallynotified the IMF Board of its acceptance of obligations under Article VIII, sections 2-4 ofthe IMF’s Articles of Agreement. Thus, the authorities committed themselves to rule outany restrictions on current account transactions and not to adopt restrictions on such


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transactions ever again. This decision was thoroughly worked out and produced nonegative effects, as some analysts had anticipated. On the contrary, the announcementof this move was the first clear-cut sign of pushing reform through towards a larger scaleuse of market-based mechanisms.

12. The year 1998 produced further evidence of monetary policy weaknesses and limitsthat should be identified and addressed with the utmost care.

12.1. The National Bank of Romania exerts an indirect impact on the interest ratemechanism in the banking system with the help of the monetary anchor. The attempt toinduce a downtrend in interest rates at mid-1998 turned out to be short-lived since themarket rejected lower interest rates. In fact, the markets’ behaviour reflects the reactionof economic mechanisms to the authorities’ move. The resulting information should beturned to good account by decision-makers in order to root out the causes for suchundesirable developments. The state of affairs proves that market mechanisms arefunctioning and they restrict the authorities’ capacity to implement insufficientlysubstantiated policies.

12.2. In late 1998, the yawning gap between demand and supply on both money marketand the economy as a whole helped to achieve the anti-inflationary target against thebackdrop of three-digit interest rates in the interbank market. The high interest ratesmirrored the operators’ lack of confidence in sustainability of the economic policyconducted by the authorities as well as the risk of a financial crisis outbreak because ofexternal debt service and the state of the banking sector. It was yet another proof of thefact that functioning of market-based mechanisms rests on the credibility of economicpolicies.

13. The statement on convertibility of the leu according to provisions under Article VIII ofthe IMF’s Articles of Agreement was put to a severe test in the wake of the currencycrisis that embroiled Russia in August 1998. Capital flows reversed and caused thedemand/supply ratio on the forex market to deteriorate sharply. The central bank stronglyopposed to any administrative approach whatsoever in order to break the deadlock as itcould have had dramatic effects on the credibility of reform in the long run. Therefore,central bank’s choices to attain a smoothly running forex market were the following:

13.1. To acquire rapidly foreign funding to prop up the domestic currency. Such anapproach was inappropriate since the international crisis thwarted the access to worldmarkets and, besides, the overvalued exchange rate of the moment did not mirrorRomania’s economic picture since it was the result of previous capital entries.

13.2. To agree to a crash of the leu for restoring the equilibrium between demand andsupply on the forex market as soon as possible. The experience of other countries,amongst which Russia and the Republic of Moldova that had little choice but to takesuch an approach because of the foreign exchange reserve shortfall, highlights quite


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grave consequences, e.g. inflation flare-up, collapse of the domestic financial markets,swift demonetisation of the economy, the crisis of the banking system, which might haveundermined restoration of the balance in the economy for long.

13.3. To monitor the relatively fast, yet managed, depreciation of the domestic currencyin an attempt to strike a balance without losing confidence in the banking system andwithout disruptions that might have unpredictable effects on relative prices. Havinganalysed the advantages and risks attached to each of the above mentioned options aswell as their feasibility, the National Bank of Romania chose the last one in order toreinstate the balance, thereby agreeing to take over the related costs, including interestrate hike and foreign-reserves rundown by way of sales in the forex market.

14. Fiscal policy conducted by the Government took aim at keeping both the governmentbudget and the consolidated general government budget deficits under control andmaterialised in lower-than-anticipated figures. The government budget deficit ran at lei10,401 billion, i.e. 3.1 percent of GDP, while the consolidated general government deficitequalled lei 11,253 billion, i.e. 3.3 percent of GDP. However, deficit financing triggered afull-scale financial imbalance. The economic monetary programme for 1999 assumedthat the public deficit would have largely been financed from external sources while theremainder would have been financed from domestic sources. The anticipated externalfinancing – that might have been possible unless the crisis in Russia negatively affectedthe external environment – would have had a double favourable effect domestically,namely it would have helped to replenish foreign exchange reserves, therebydownsizing both risks and the shrinking credibility relative to foreign debt servicepayments due in 1999, on the one hand, and it would have substantially easedpressures exerted by the domestically financed deficit on money market, on the other.As a matter of fact, the consolidated general government deficit was almost completelyfinanced from domestic sources. Consequently, non-government entities were crowdedout of the credit market, thus containing the potential recovery of the economy.Moreover, interest rates surged, particularly those on the most sensitive segment of thecredit market, i.e. the interbank market, triggering higher costs for public deficit financingthat persisted into 1999.

15. Income policywas loose especially in early 1998.Annual average of economy-wide wageand salary earnings moved higher by a real 6.8 percent, with industry exhibiting a 1.8percent rise, the lower output notwithstanding. The hike in wage costs added to theincreasingly gloomy economic picture and resulted in a larger external imbalance. Thisstate of affairs highlights inconsistency of theories based on the principle of stimulatingdemand in order to achieve higher output. By spurring domestic demand of an openeconomy – such as that of Romania tends to become – notably if aggregate domesticsupply is hurt by structural constraints (poor merchandise quality, outdated functionaland technical parameters a. s. o.), the balance of payments can only get worse.


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16. Restructuring of money-losing enterprises witnessed lower-than-expected results formost of the year under review. Soft budget constraints on enterprises led to wage hikesand to maintenance of inelastic import demand in spite of the sharp decline in output. Aserious disruption occurred between the fall in output, up to double-digit output cuts insome sectors, and the virtually unchanged number of employees whose real wageseven augmented. Larger disruptions were detected for the state-owned industries thathad a stranglehold on the domestic market. The adverse selection process was thereforeglaringly obvious: access to resources was maintained for the public sector and theloss-makers, which afforded to spend more, to the detriment of the viable sector showingsound growth potential.

17. Privatisation posted mixed developments. After a half-year stagnation, it gatheredmomentum particularly in late 1998 when inter alia a 35 percent stake in Romtelecom,the national telecom operator, was sold and negotiations on privatisation of the firstmajority state-owned prime bank were concluded. Out of the total initial capital of theSOF, some 8 percent were privatised in 1998 compared with 10 percent of its initialportfolio that went into private hands during 1990-97. All the same, the private sectoraccounted for 58.3 percent of GDP, up by merely 0.2 percentage points versus 1997.The private-sector share in industry stood at a disappointing 30 percent. Inconsequence of the above, private sector holds, obviously, a small share than thatdisplayed by Central European countries and recent developments in this sector remaingrim. The causes for such outcomes deserve an in-depth analysis: most likely, adverseselection took its toll by crowding out the viable economic sector; it is a fact that, for thetime being, private management stays largely poor, much the same as the managementof the state-run sector of the economy.

18. Improvement and restructuring of the banking system should be carried out inclose correlation with the reform in the real sector. In the course of 1998, four banks(including a branch of a foreign bank) were commissioned and two branches of foreignbanks left the Romanian banking market; at year-end, forty-five banks were in operation.Owing to less than encouraging economic conditions, as some banks’ portfolios arealready burdened with non-performing credits, banks did little to support a soundeconomic growth. In fact, corporate credits edged by a real 15.1 percent higher on theyear, but the share of credits classified under ‘doubtful’ and ‘loss’ expanded in relation tototal credit to non-government to 54.8 percent at end-December 1998 from 52.6 percenta year earlier. Analysis of such a development should consider the following reasons:

18.1. Throughout the reported year, a certain change in bank managers’ behaviour wasdiscernible as they avoided carrying on a widespread policy of concealing the poorstate of some credits. In other words, banks took a down-to-earth approach, which haseaten into their profits, and proceeded to a more accurate classification and provisioningof bad loans.


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18.2. Marked discrepancies have emerged among banks with respect to non-performingloans and risk provisioning. A group of seven ailing banks, three of which were revokedthe licence by the National Bank of Romania, shows an extremely precarious financialposition because of the large share – topping out 80 percent of total credits – of non-performing credits, poor diversification of the asset portfolio (with an overwhelmingmajority of credits), and low risk provisioning. The problem banks left aside, theremaining banks exhibit a less than 35 percent risk credit rate while the ratio betweenbad loans and total assets falls below 13 percent. Moreover, these banks succeeded inensuring a high level of risk provisions for non-performing loans, thereby improvingadditionally their financial situation.

19. While taking account of these changes, it cannot be overlooked the worseningfinancial situation of banks throughout 1998 owing to the following factors:

19.1. Erosion of capital base because of protracted runaway inflation. This developmenthurt mostly the financial sector that deals largely with cash holdings while otherindustries invested chiefly in equipment and other goods that usually preserve theirvalue even in an inflationary environment. In order to partly fend off the erosion of banks’capital base, the National Bank of Romania steadily followed a policy of maintainingminimum capital requirement of banks to western standards. Proliferation of small weakbanks, which might have become far more vulnerable, was thus forestalled.

19.2. Deterioration of the performance of companies that make up the banks’ customerbase because of the wobbly economy. Consequently, bad loan portfolios kept growing.

19.3. Poor management of some banks, as reflected by a series of weaknesses. Some ofthem can be found in other fields of activity, e.g. the disparity between wage costs andoverall performance, or unreasonable administrative costs; there are also some specificweaknesses, such as non-observance of lending practices that brought about severalcases of thick frauds.

19.4. The tax regime also contributed to the crippling state of such banks for quite awhile since it provided for the automatic track record of accrued but not received interestunder incomes. The norms on risk provisions, effective as of April 1999, ruled out theabove-mentioned drawback.

20. Under the circumstances, the National Bank of Romania should attach greaterimportance to supervision of the banking system. Supervision focuses on achieving astable and viable banking system by setting prudential indicators and norms for banks,and monitoring their observance by banks. Its main goal is to prevent systemic risk and,at the same time, observe autonomy of each bank in organising and performing activitiesin a competition-based environment. The accomplishments by the National Bank ofRomania in the supervision area were inconclusive. Systemic risk was pre-empted,sometimes on the back of large credits extended to the problem banks. The capacity to


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pre-empt the bad loan build-up is insufficient. To this development, the following causesacted jointly:

20.1. Meagre experience in supervision due primarily to the swift expansion of thebanking business in Romania mirrored by the increment in the number of banks andbanking operations, and a broader range of banking services.

20.2. The limited intervention capacity by the National Bank of Romania in compliancewith the laws enacted as of 1991. The instruments available to the central bank provedinsufficient and practically ineffective. Thus, the two banks, Dacia Felix and Credit Bank,on which the National Bank of Romania imposed bankruptcy proceedings ever since1996 further squandered resources and carried on operations as the Court refused toadmit that a bank incurring hundreds of millions of US dollars in losses (that is more thantenfold the banks’ equity) cannot work properly. The banking laws adopted in thesummer of 1998 corrected in part the drawbacks related to the instruments used by thecentral bank in exercising its supervisory duties; the extent to which these laws are bothsufficient and efficient when put into practice remains yet to be seen.

21. The overall discouraging developments in the Romanian economy coupled with theworsening international environment and the bunching external debt service in 1999prompted a series of successive downgrades in the country rating by the main ratingagencies around the world. Such decisions stemmed from the sorry plight of theeconomy as well as from the confusing and conflicting signals sent by variousgovernment officials, the talks on loosening the purse strings at a time when even underthe laws in force to secure the much needed financing raised quite enough problems.The rating for Romania drifted to B– and BB– compared to between BB– and BB+ a yearearlier. Such a rating had in turn an adverse impact on capital inflows amid theinternational turmoil, leaving the Romanian authorities less manoeuvring margin inpursuing the economic policy envisaged for 1999.

22. In 1999, the most daunting challenge for the Romanian economy to cope with isdefinitely the external debt service in amount of USD 3.2 billion, tantamount to 31.5percent of the estimated goods and services exports. This level is well beyond thealertness limit of 25 percent of goods and services exports even though the level of theexternal debt service, i.e. 23.8 percent of GDP at end-1998, is relatively low and is stillfar from being critical. The projected current account deficit coupled with the looked-forgrowth of foreign exchange reserves put the total figure of external borrowingrequirements to over USD 5 billion in 1999. Both government and the internationalfinancial institutions should contribute to put in place a convincing economic programmein order to meet these requirements.

23. An economic programme to cope with the external constraints and put the countryback onto a sound growth path, after having restructured the loss-making industries, was


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already outlined in late 1998. The main goals of the programme implemented by theGovernment alongside with the National Bank of Romania are the following:

23.1. To narrow the consolidated general government deficit and reach a substantiveprimary surplus in 1999 so as to restrain domestic absorption and secure lending resourcesfor non-government sector growth.

23.2. To proceed with the disinflation process by conducting a prudent monetary policy,even though narrowing of the external imbalance is to be made by way of domesticcurrency depreciation in real terms.

23.3. To staunch losses in the still state-owned sector by restructuring loss-makingactivities, fast-track privatisation, closure of unviable enterprises and industries.

23.4. To correlate closely wage hikes with improved performance, increase productivityand cut down arrears. State-run loss-makers should conclusively apply restraints onwages that should remain to the level of the last quarter of 1998.

23.5. To take the external imbalance down to a level that can secure sustainablefinancing including full repayment of the external debt service. To realise this goal, boththe above-mentioned co-ordinates of the economic programme and the sizeabledepreciation of the leu in real terms should help. The latter is expected to bring the leuexchange rate to an equilibrium level accepted by the market and at the same time toimprove competitiveness of the Romanian goods on both domestic and foreign markets.

24. In pursuit of these aims, the National Bank of Romania is to focus on the following:

24.1. Further using of the monetary base as the main anti-inflationary anchor. Monetarybase is anticipated to move ahead by about 35 percent in 1999, almost in line with theinflation rate forecast.

24.2. Increase in foreign exchange reserves of the National Bank of Romania byapproximately USD 400 million from the end-1998 figure against the backdrop ofmaintenance during the second half of 1999 of the exchange rate of the leu against theleading currencies to the real-terms level exhibited in mid-1999. The foreign exchangeregime, which fits the present economic conditions in Romania, is to be left virtuallyunchanged, but the step liberalisation of capital inflows is set to keep up.

24.3. Improvement in banking supervision ranks high on the agenda of the central bank.The aim is to attain improvement and smooth functioning of the banking system both byharmonising regulations with the provisions of the banking laws enacted in mid-1998 andapplying these regulations.

25. The overall economic conditions stay fragile while the manoeuvring margin to beused by the authorities in implementing the pre-set programme is limited. This is theresult of the accumulated imbalances that cannot be redressed by making bare


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statements no matter how consistent they appear to be. On the other hand, the severeexternal constraints coupled with the lack of major capital inflows may spark aninevitable turmoil. To secure external financing is all the more difficult because of thehalf-hearted implementation of reform programmes all through the past decade. It is hightime to banish both the illusion of a miracle drug that could put the wobbly economy on asound footing and the hazardous experiments of economic policy, such as widening ofthe general government deficit or increasing wages and salaries without backing fromoutput performance. The measures directed at boosting demand to deal with the crisisproved de facto counterproductive when applied to any opened-up market economy.Under the present circumstances, implementation of such measures in Romania couldonly end in yet another confusing signal on the government’s economic approach thatwill most likely bring capital inflows to a standstill.

26. The issue of fast-track reform completion, most notably in enterprises, remains a toppriority in order to ensure smooth functioning of market-related mechanisms and rejectadverse selection phenomena, which were sort of a bad habit during 1998. Lookingahead, a long-term strategy on the overall development of the economy and on itsdomestic and external financing in particular should be adopted – its implementationshould cover decades and exceed the election cycle. Absence of such a strategyadded to the problems faced by Romania in the near term, especially those related todeficit financing in 1999; in the long term, it may lead to less effective and costliersources that will help to boost domestic growth.

27. Romania shifted irrevocably from the path of self-sufficient development ontointegration with the European Union. This option should be reflected by the entireconduct of the long-term economic policy without any kind of particular tones likely to beinduced by the parties changing hands on the political scene. Further opening up of theeconomy and a deeper involvement in the global flows of capital and goods stands outas the fundamental option for Romania, the one and only solution that may secure thecountry’s prosperity in the long range. Yet, this option should be relentlesslyunderpinned by policies directed at showing due consideration to the constraints arisingfrom efficient market operation. The joint action of these policies should in turn back theconsistent and rational policies and help to attain long-lasting and sound economicgrowth.

Chapter II. World economy in 1998

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A. An overview

28. In 1998, world economy bore the hallmark of slowdown in economic growth,compared with the previous years. Several imbalances that emerged in the previousyear worsened and the danger of a global recession was looming. The crisis, whichbroke out in Southeast Asia in the summer of 1997 underscoring fragility of the bankingand financial systems in the area, was followed by other crises in countries such as theRussian Federation and Brazil.

28.1. International trade was also plagued by a sluggish growth rate, compared with1997, and there is a potential danger of increasing protectionism mostly in the lessperforming economies. Nevertheless, globalisation carries on and discrepancies amongmarkets have already begun to fade.

28.2. The flexible real earnings and lower raw materials costs were among thecontributing factors to keeping inflation at bay. The fall in both oil prices (the 30 percentcut during 1998 was the fourth-largest this century and the second-largest this decade)and raw materials prices hit hard exporting countries, most of them developing andtransition countries, which saw their revenues on the slide. Advanced economies, usuallyimporting countries, reported improved terms of trade, thereby ushering in higherrevenues and spurring consumption and investment.

28.3. The economic challenges faced by Japan and other Southeast Asian countrieswere largely the result of the crisis that hit the banking system for the recovery of whichlarge portions from public funds were allocated.

28.4. Capital flows were less directed to developing and transition countries, therebycausing their economic conditions to worsen, and went mostly to the developedcountries showing lower risks.

29. In 1998, GDP rose by about 2.5 percent at world level, compared to 4.2 percent ayear earlier. Average growth rate of the developing economies slowed to 3.3 percent,still outpacing advanced economies, which posted a 1.8 percent growth rate.

29.1. The US gross domestic product grew at an annual rate close to that recorded ayear earlier, i.e. 3.9 percent, powered by private consumption and investment,information technology investment in particular. Exports slackened, up by a mere 0.5percent, while imports moved 10.9 percent higher.

29.2. Japan’s GDP contracted by 2.8 percent year on year. Consumer spending dippedby almost 3 percent due largely to the financial meltdown and, consequently, to thecredit crunch, as well as to investor and consumer pessimism.


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29.3. EU economies grew at a faster pace over the year before. GDP in the euro arearose 2.9 percent versus 2.5 percent in 1997. In the United Kingdom, which developed adifferent business cycle in comparison to that of the euro-area members, the annualgrowth rate slowed to 3 percent from 3.8 percent in 1997.

29.4. Economic performance of the developing countries was different across countries.Countries such as China, Morocco, India, Egypt, Mexico and Argentina recorded highergrowth rates. Economic activity of Southeast Asian countries fared worse, with somecountries posting declines in the GDP. These countries have pursued interventionistpolicies that proved their limits; if such policies met with success in the previous periodsof economic boom, they became counterproductive and ineffectual amid attempts toforce up economic growth when neither domestic saving nor foreign demand couldjustify and allow such an approach.

30. World trade experienced a slowing of growth in 1998. World trade volume was up 3.3percent, the lowest growth rate since 1985, shrinking threefold over the year before.Developing countries posted the most substantial slowdown in exports growth, from 11.4percent in 1997 to 2.2 percent in 1998, followed by the developed countries, down to 3.2percent from 10.3 percent a year earlier and – to a smaller extent – transition countries.Imports also saw a lower growth rate in the case of developing countries, slipping 0.7percent in 1998, after having risen by 11.2 percent in 1997. Growth rate of imports by thedeveloped countries dropped to 4.7 percent in 1998.

31. Current account balance continued to run up a deficit in the USA and a surplus inboth European Union and Japan. In 1998, the US current account deficit widened toUSD 228.6 billion, i.e. 2.7 percent of GDP, but the USA are further regarded as the mainengine of global growth and one of the leading contributors to offsetting the effects of theunfavourable developments that shook the world in 1998. Current account surplus of EUcountries narrowed to USD 115.2 billion, i.e. roughly 1.4 percent of GDP, while Japan’scurrent account surplus widened to USD 121.1 billion, i.e. 3.2 percent of GDP. SoutheastAsian countries such as Indonesia, Malaysia, the Philippines, and Thailand, after postingan overall current account deficit of USD 16.5 billion in 1997, reached a current accountsurplus of USD 28.5 billion in the reviewed year.

32. Most of the countries strove throughout 1998 to keep inflation down followingimplementation of restrictive monetary and fiscal policies – falling prices for rawmaterials also helped to curb inflation rate.

32.1. Inflation rate in developed countries slid to 1.6 percent in 1998 from 2.1 percent ayear earlier. In the US, inflation rate fell to 1.3 percent; Japan enjoyed a 0.6 percentinflation rate, while the European Union recorded a 1.5 percent inflation rate. Thanks tothe efforts made by euro-area member states to meet the Maastricht criteria, inflation ratewas slashed to only 1.3 percent. This is the best performance in four decades, showing


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that anti-inflationary policies that have been consistently promoted by these countries foralmost twenty years now yielded results.

32.2. Average inflation rate of the developing countries stood at 13.3 percent comparedwith 11.1 percent in 1997. African and Latin American countries witnessed lower inflationrates of 10.8 percent and 9.4 percent, respectively. On the other hand, the developingcountries in Asia exhibited inflation rates above the average for the developing countriesand higher than that recorded a year earlier.

33. Unemployment was still on its way up in the developed countries averaging almost 7percent. The buoyant US economy was responsible for the lower unemployment rate,which dropped to 4.5 percent in 1998, while in Japan unemployment rate rose to 4.1percent from 3.4 percent a year earlier. The European Union provided a totally differentpicture: heavy taxation, fairly bountiful unemployment benefits and labour market rigiditybrought about a jobless rate far and away above the level attained by otherindustrialised countries, i.e. 11.7 percent. It is estimated that about two-thirds of the jobseekers in the EU are affected by structural unemployment, which makes it a goingconcern for policymakers, most of them Social Democrats, and which may impactmonetary and fiscal policies in the foreseeable future. In recent years, both Ireland andSpain have performed extremely well on the economic scene, achieving high labourproductivity but high unemployment rates as well. However, consistent policies towardsthe right direction over several years now have finally succeeded in bringingunemployment rate in these countries down.

34. Monetary policy of most countries focused on keeping inflation in check, the same asthey did a year earlier. In some countries, monetary policy also allowed for underpinning,to some extent, domestic demand amid slowdown in global economic growth. Monetarypolicy conducted in the EU loosened somewhat against the background of tough fiscalpolicy. Throughout the year under review, interest rates were highly stable.

35. In order to fend off spillover effects of the financial crisis that broke out in mid-1997,Asian countries obviously strove to strengthen their financial and banking systems. InJapan, the government pursued a cautious monetary policy and took several steps todeal with the challenges confronting the financial system, but their articulation has beendelayed. An ambitious plan to turn around the banking sector was completed no sooner thanOctober 1998. It consists of a framework meant to write off doubtful claims by setting-upa special commission with enhanced powers of control and assistance over ailingfinancial institutions either by putting in place a system of ‘relay-banks’ – provisionalpublic institutions that may take over the activities formerly performed by insolventinstitutions – or by putting them under the temporary guidance of the government. Theauthorities made considerable appropriations for ensuring financial support to bail outailing yet solvent banks as well as for enhancing the deposit protection scheme. The


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long-lasting rebound in Japan’s economy may not be accomplished in the absence of asound banking sector.

36. Over the last two years, financial crises broke out in the countries practising a lessflexible exchange rate regime. In 1998, several countries shifted to more flexibleexchange rates considering the high degree of foreign exchange risk. Nevertheless, theever-growing mobility of capital on the international markets further requires a solidfinancial system and strict foreign exchange discipline. Countries in the euro area pavedthe way for passing to the third stage of the Economic and Monetary Union and for thechangeover to the single currency, allowing their currencies to float within marginsnarrower than in previous years.

37. The end of the ‘cold war’ has entailed in the past few years cutbacks in militaryexpenditures and therefore in budget deficits. Fiscal policies in the developed countrieswere aimed in 1998 as well at keeping inflationary pressures under control, and thecountries in the euro area additionally focused on meeting the convergence criteria sothat fiscal policies were generally marked by tightening. Budget deficit as a share ofGDP entered a downward trend averaging 0.9 percent in the major advancedeconomies. Canada and the USA recorded both budget surpluses in 1998, while theUnited Kingdom, Germany and France ran up budget deficits that narrowed their sharein GDP; Japan’s budget deficit increased its share in GDP because of the recession andunemployment.

38. International capital flows witnessed a shift from the developing and transitioncountries to the industrialised countries during 1998. Therefore, financial marketsbecame increasingly volatile and, in early 1998, stock markets of Western countries sawa rally assisted by falling long-term interest rates, which boosted economic activity inthese countries. Throughout 1998, the mark-up in shares price equalled 18.4 percent inthe USA and 16 percent in the European Union.

B. European countries in transition

39. Economic growth continued to be reported in 1998 by most Central and EastEuropean countries. Economic growth of these countries was largely attributable todomestic demand, investment in particular. Foreign demand played a secondary partamid the slowing in world trade growth compared with a year earlier. The overall upwardtrend in unemployment was the result of restructuring of economy. Inflation stayed on thedownturn that had begun in the previous year while current account deficits of most ofthe countries in transition widened. Monetary and fiscal policies were further aimed atprecluding resurgent inflation.


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40. In the year under review, GDP rose almost 3.2 percent in the transition countries ofCentral and Eastern Europe on a whole, but went down by 1.5 percent in the CIScountries. Declines in GDP were recorded by Romania, down 7.3 percent, the CzechRepublic, down about 2.7 percent, the Republic of Moldova, the Russian Federation andUkraine whose gross domestic products contracted by 6 percent, 4.6 percent and 1.5percent, respectively.

41. Foreign trade of countries in transition displayed a marked slowdown in growthversus the previous year: exports increased by 4.1 percent versus 6.2 percent in 1997,yet rising faster than for other groups of countries, while imports advanced barely 1.2percent compared to 9.3 percent a year earlier. In terms of value, exports rose in mostcountries in transition, except the Russian Federation, Bulgaria and Romania. Currentaccount balance of transition countries in Central and Eastern Europe further ran up adeficit, except the Russian Federation that showed a narrowing current account surplus.Countries such as Bulgaria and Slovenia, with meagre current account surpluses a yearearlier, both displayed deficits at end-1998.

42. Pursuance of anti-inflationary monetary and fiscal policies succeeded in taminginflation in most countries in transition. Some of them even enjoyed single-digit inflationrates in 1998. Moreover, industrial producer prices posted a limp growth.

43. Unemployment increased amid economic restructuring in most of the transitioncountries in Central and Eastern Europe, save Bulgaria, Hungary and Slovenia. Higherjobless rates were detected for Croatia and Slovakia while the Czech Republic andHungary posted single-digit rates.

44. The same as a year earlier, monetary policy was aimed primarily at holding backinflation in most of the countries under review. Broad money growth lagged behindconsumer price increase in countries such as the Czech Republic, Slovakia and theRussian Federation, pinpointing the reduction in broad money in real terms anddemonetisation of these economies. At the same time, foreign exchange policy waschiefly aimed at attaining anti-inflationary targets as well. The currencies of mostcountries in transition strengthened in real terms with the exception of the Russianrouble, the crash of which (in August 1998) had a powerful impact on the currencies ofCIS members, the Moldavian leu included, and also on the currencies of otherdeveloping and transition countries, thereby increasing risk exposure of these countries.In some European countries in transition, domestic currency depreciation sped up in thelatter half of 1998, as it was the case of Slovakia, whose economic growth over the lastfew years was combined with a current account deficit that reached unsustainablelevels, while monetary policy lacked correlation with fiscal policy. Nevertheless, thecurrencies of most countries in transition in Central and Eastern Europe strengthenedeven in nominal terms, during 1998 versus 1997.


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45. Budgetary policies were also aimed at achieving anti-inflationary targets sincebudget deficits narrowed in most of the countries in transition, save the Czech Republic,Hungary and Poland. Bulgaria and Estonia closed the year with budget surpluses whileLatvia exhibited a balanced budget. In spite of the troubles it had to face in the summerof 1998, the Russian Federation cut its budget deficit in relation to the GDP.

46. There are quite a lot of lessons to be learned by the other countries in transition fromthe crisis that engulfed the Russian Federation in the summer of 1998. Thus, the budgetdeficit, though not too wide apparently in relation to the GDP (5 percent share-to-GDPcompared to 7.3 percent in 1997), was largely bridged by foreign capital inflows in theform of extremely volatile and costly portfolio investment. Their instant effect was toconceal imbalances that aggravated because of expensive resources. After less than ayear, the glaring unsustainability of such behaviour and the full-scale flight of foreigncapital have deepened the financial turmoil.

Chapter III. National economy in 1998

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47. Real economy experienced a setback for the second year in a row. Apart frominflation, which was notably lower from the prior year, and from some isolated or short-lived sectoral advances, most sectors experienced contractions in 1998: activity inindustry and construction dropped, agricultural production shrank from the prior year,unemployment mounted, and consequently the GDP fell; domestic public debt grew, andunfavourable foreign trade developments, namely the rising trade balance deficit,deepened the decline even further. Some of these unfavourable developments, however,resulted from the restructuring of nonviable sectors.

48. Financial constraints on the fiscal programme were weak, principally in the publicsector; arrears to the central budget and the social security budget were furthertolerated, and some loss-making enterprises benefited from rescheduling of long-standing debts to the state, energy suppliers and banks. The lax wage policy was incontradiction with the economic reality. While the economy was going through a crisis,real wages went up, thereby enhancing economic disequilibria.

A. GDP formation and use

49. GDP amounted to lei 338,670 billion in nominal terms, 7.3 percent lower in real termsfrom the previous year.

49.1. The first sector that made a substantial contribution to GDP formation in 1998 wasthe services sector. This is a normal trend that highlights the structural changes in theeconomy. However, the rise in the share of services in GDP, from 33.2 percent in 1997 to37.8 percent in 1998, occurred against a gross value added (over lei 128,000 billion)that was 6.3 percent lower from 1997.

49.2. Industry lost its leading position in relation to GDP formation as its weight fell, from35.5 percent in 1997 to 31.7 percent in the year under consideration. Gross value addedin industry (lei 107,000 billion) accounted, in real terms, for only 89.5 percent of lastyear’s achievements, as a result of the decline in most industrial sub-sectors, delay inrestructuring and low efficiency.

49.3. Construction subsided for a second year in a row. It provided a gross value addedof lei 17,500 billion, which, despite the fact that it represented 88.5 percent of the figurefor 1997, maintained its contribution to gross GDP formation (5.2 percent).

49.4. In agriculture, gross value added stepped down 8.3 percent versus 1997, and theshare of this sector in relation to GDP contracted from 18.1 percent in 1997 to 16 percentin 1998. Higher intermediary consumption due to the works meant to rehabilitate thecrops damaged by floods and storms, the poor crops and the low efficiency in theanimal-breeding sector, hit the activity in this sector.


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Indicators M.U. Achievements in 1998

1998 vs. 1997 (percent changes)

1. Gross Domestic Product bill. lei 338,670.0 –7.3 1.1. Formation 1.1.1. Industry bill. lei 107,305.6 –10.5 1.1.2. Agriculture bill. lei 54,077.1 –8.3 1.1.3. Constructions bill. lei 17,496.6 –11.5 1.1.4. Services bill. lei 128,050.1 –6.3 1.2. Use 1.2.1. Total final consumption bill. lei 307,536.0 –3.7 1.2.2. Gross fixed capital formation bill. lei 61,209.8 –18.1 1.2.3. Change in stocks bill. lei –1,350.9 x 1.2.4. Exports of goods and services, net bill. lei –28,724.9 x 1.3. GDP deflator % 145.92. Industrial output bill. lei 297,372.0 –17.0 2.1. Industrial producer prices % 33.23. Agricultural production % –7.64. Foreign trade 4.1. Exports fob mill. USD 8,299.6 –1.6 4.2. Imports fob mill. USD 10,911.0 4.8 4.3. Balance mill. USD –2,611.4 31.9 4.4. Coverage of imports through exports (fob-fob) % 76.1 –6.05. Balance of current account mill. USD –3,010.0 40.96. Balance on consolidated state budget (% in GDP) % –3.37. Net nominal average monthly wage earnings – annual average lei/month 1,073,898 69.9 – at year-end lei/month 1,360,261 44.68. Consumer prices – annual average % 59.1 – at year-end % 40.69. Real net average monthly wage earnings – annual average % 6.8 – at year-end % 2.9Source: National Commission for Statistics, Ministry of Finance

Table 2. Main macroeconomic indicators in 1998

50. Private sector contribution to GDP formation was 58.3 percent, 0.2 percentage pointshigher from the previous year. The private sector holds a small share in industry asrestructuring and privatisation of this sector unfolded at a slow pace and the results werebelow expectations. The rise in the private sector’s contribution to industrial activity wentup from 26 percent in 1997 to 29.8 percent in 1998 and was due more to the decline ofthe public sector than to the strengthening of the private one. The management of theprivate sector was affected by the unstable legal framework and the unfavourableeconomic environment and proved to be inappropriate much too often; in other sectors,the contribution of the private sector was more extensive, exceeding 90 percent indomestic trade and agriculture.

51. GDP use mirrored the setback experienced by most economic sectors and thenegative developments in foreign trade.


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51.1. The components of final consumption evolved differently. Household finalconsumption was influenced by overall recession and fell 6 percent versus 1997following the drop in the household purchasing power; consumption of private non-profitinstitutions held steady, while general government consumption edged 14 percent higherfrom 1997, contradicting the express commitment of the government to promote a tightbudget policy. As a result, the rise in taxes did not induce a notable growth of resourcesallocated to basic public services such as education and health, but generated wasteand bureaucracy.

51.2. Gross fixed capital formation subsided by 18 percent; the decline-plaguedeconomy used only 18.1 percent of GDP for investment, almost 4 percentage pointslower from 1997.

51.3. The negative impact of foreign trade was stronger compared to 1997 as net importsof goods and services rose by 17.3 percent. This development shows that a considerablepart of final consumption was provided for from external sources, trend that hasobviously become unsustainable, indicating once again that the policies meant tostimulate demand only result in a wider external deficit.

52. GDP per capita in 1998 is estimated at lei 15,050.1 thousand, 7.1 percent lower, inreal terms, from 1997. Denominated in USD, based on the annual average exchangerate, GDP per capita equalled USD 1,695 as against USD 1,550 in 1997. The rise wasdue to the real appreciation of the leu (based on annual average values). GDP deflatorwas 145.9 percent, corresponding to an average increase in prices by 45.9 percent (100percentage points lower from 1997). The heftiest rise was recorded by consumer prices:59.1 percent as annual average; inflation rate equalled 40.6 percent December onDecember. Industrial producer prices posted the lowest growth, i.e. 33.2 percent asannual average.

B. Sectoral developments

53. Industry posted declines in both output and its contribution to budget revenues forthe second consecutive year. Progress was made in reducing the stocks of finishedproducts and overdue debts.

53.1. Industrial output dropped 17 percent in real terms, due principally to the cut inoversized and energy- and raw material-intensive activities following restructuring ofthese sectors.

53.2. Stocks of finished products amounted to lei 16 thousand billion. The downwardtrend posted by stocks in 1997 continued into 1998. At end-1998, the value of thesestocks accounted for 65.4 percent of the average monthly output achieved during theyear from 68.3 percent in 1997.


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53.3. Turnover in industry increased 1.6 percent in 1998 sequel to the growth in theextractive sector (17.6 percent) and manufacturing (2.5 percent). Sales by the energysector dropped 9 percent following the cut in energy-intensive activities.

53.4. The rise in industrial producer prices lagged behind that in consumer prices; the1.5 percent monthly average change was 5 times lower against that in 1997. Thisdevelopment was partly due to the smaller costs of imports as a result of appreciation ofthe leu in real terms and the downtrend in world prices.

54. Industrial activity reacted differently across sectors to the reform process and marketconstraints.

54.1. Output of the extractive sector was almost 14 percent lower, which highlighted thereduction of activity in heavily subsidised sectors.

54.2. Energy production was 12 percent lower as against 1997, but it was sufficient tomeet domestic needs throughout the year. Restructuring of the oversized energy-intensive sectors and the reshaping of related industrial activities enabled the reductionof oil and natural gas imports; the share of domestic resources in total net energyresources went up from 69.5 percent in 1997 to almost 73 percent in 1998. The nuclearenergy sector accounted for over 10 percent of the electric energy output as the otherconventional primary energy resources shrank.

54.3. Manufacturing underwent the most severe decline in the last six years (by over 18percent); this development was similar to that recorded at the outset of the reform.Transport means industry and tobacco processing were the only sectors that avoideddeclines in 1998. Metallurgy and food industry (which together account for more than 52percent of industrial activity) showed moderate output declines (0.6 percent and 1.5percent, respectively), and 1998 achievements in some sectors (metallic constructionsand metal products, machinery and equipment, furniture) did not exceed two thirds ofthose of 1997.

55. Production in agriculture was 7.6 percent lower than that of 1997; vegetableproduction fell 11.2 percent against the backdrop of poor efficiency and bad weatherconditions, while production of the animal-breeding sector went down 1.6 percent.

56. Agricultural policy suffered no changes from the previous year: the governmentfurther supported the private sector, taking over part of the costs of agricultural worksand related services; the authorities continued to improve activity in the state-ownedsector by restructuring or winding up nonviable, loss-making companies, but the actionsthey had taken were not strong enough to stimulate economic growth.

57. By sector, producers’ performances suffered the impact of specific factors.


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57.1. In the vegetable sector, producers focused on more profitable crops in 1998.Accordingly, areas under sunflower, potatoes and vegetables were extended; as in thecase of these crops yields per hectare rose slightly, the production obtained was higherthan that of the prior year (production gains ranging from 3.5 percent to over 25 percent).By contrast, the retrenchment of areas under grains (in the case of which the supply for1997 outran by far domestic demand and prices remained low) and the fall in yields perhectare induced the drop in grain production (prevalent in the country’s agriculture) byover 30 percent versus 1997.

57.2. Developments in the animal-breeding sector were equally influenced by thedomestic and foreign markets. First, Romanian products could not compete with theproducts from the EU, EFTA and CEFTA countries that reduced export opportunities forthese products. As to the domestic market, the increased supply of imports outrandemand in 1998, prices remained low compared to the costs of domestic production,and producers, private ones in particular, confined their activity.

58. Investment was, badly hurt by recession for the second consecutive year. The real18.6 percent decline in investment reflected the major economic difficulties, amongwhich the fall in saving ratio, expansion of adverse selection and the rise in externaldeficit. Investment in the economy totalled lei 45.3 thousand billion in 1998.

58.1. Public sector fixed capital investment ran at almost lei 21.8 thousand billion,accounting for 48 percent of total investment. Compared with 1997, public sectorinvestment was 23.7 percent lower, as a result of the cut in budgetary resources anddifficulties faced by companies with majority state-owned capital, that focused oncovering current costs – wage earnings were on the rise – rather than on investment.

58.2. In the private sector, accumulation of fixed capital subsided moderately versus thepublic sector, but this is illustrative for the setback private companies are suffering due tothe unfavourable economic environment. The private sector investment reached about lei19.5 thousand billion (43 percent of total), 13.6 percent below the level of 1997.

59. After a period of reluctance shown by foreign investors generated by the negativeexpectations concerning macroeconomic stability and downgrading of the countryrating, foreign capital investment in Romania went up to almost USD 3,649 million at end-1998. Privatisation of large enterprises, albeit at a slower pace than anticipated by thegovernment, attracted foreign investors in the following sectors: building materials,especially cement (investors from Germany, France, Austria and Switzerland), car andautomotive parts industry (South Korea and Germany), hydrocarbon processing(Russian Federation) and bearings industry (USA and Japan).

60. In construction, the value of completions in 1998 equalled almost lei 29.4 thousandbillion, in nominal terms, accounting for only 82 percent in real terms of the 1997achievements.


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60.1. The private sector realised 78.2 percent of total completions, by 3 percentagepoints larger from the prior year. Construction activity in the public sector contracted,accounting for only 5 percent of total construction activity, against 19.5 percent in 1997.

60.2. Dwellings erected in 1998 totalled 27,999, of which 87 percent was financed fromhousehold funds and most of them (nearly 65 percent) were located in the rural area.Dwellings by 1,922 were less from the prior year due to the 7 percent decline in theactivity of the public sector.

61. Foreign trade activity in 1998 was hurt by the poor performance of overall economy,the decline in industrial activity in particular. Both the volume and prices of exportsdropped, and the value of exports was 1.6 percent lower from 1997. On the other hand,apart from energy resources, imports expanded, the value of the product groups risingbetween 5 and 220 percent, despite price cuts on the world market.

62. Exports ran to USD 8,300 million, down USD 133 million from 1997, chiefly as a resultof developments in chemicals and petrochemicals. The output in these sectors fell in1998, entailing the drop in exports (by 30 percent versus 1997) and in the share theseproducts hold of total exports (by 4 percentage points). The composition of exports byproduct remained unsatisfactory, highlighting the situation of the economy in generaland industry in particular. The shrinkage of oversized sectors (particularly in chemicalsand petrochemicals sectors), decline in wood industry and instability in machine buildingcaused low-value-added products (in most cases primary processing products suppliedby loss-making, energy- and raw material-intensive sectors) to hold the largest share inexports, i.e. over 19 percent of exports were provided by metallurgy, sector dominatedby companies which are among the largest debtors to the state and energy suppliers.Exports of machinery and equipment increased 7 percent from the prior year,accounting for USD 790 million, i.e. 9.5 percent of total. The largest share was held bylight industry (34 percent of total), exports of clothing and footwear (almost USD 2,770million) increasing 11 percent versus 1997, proving a certain specialisation of Romanianproducers on foreign markets.

63. Imports showed an uptrend throughout 1998; their annual value reached USD 10,911million, 4.8 percent higher from 1997. The largest imports consisted of machinery andequipment to be used in revamping the manufacturing process; these imports totalledover USD 2,511 million (almost 5 percent up from 1997), accounting for 23 percent oftotal imports. It is noteworthy the cut in imports of oil, natural gas and mineral fuelsfollowing economic restructuring; mineral products were the only category for which thevalue of imports dipped over 30 percent from 1997, also benefiting from the effect ofprice cuts.


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64. Coverage of imports (fob) through exports (fob) went down year on year, from 81 to 76.1percent, and the trade deficit mounted to USD 2,611 million, up 32 percent versus 1997.

65. Geographic distribution of foreign trade underwent no significant changes in 1998.

65.1. Foreign trade with EU countries prevailed further: 64.5 percent of exports and 57.7percent of imports. Exports to these countries equalled USD 5,356 million, over 12percent more than in 1997, and comprised chiefly consumer goods, metals and metalproducts in different processing stages. Imports from these countries consisted mainly ofmachinery, equipment and consumer goods that totalled USD 6,300 million, 15.2 percentmore from 1997. As the growth rate of imports was higher than that of exports, the tradedeficit with these countries widened almost USD 246 million to reach about USD 945million at year-end.

65.2. Foreign trade with former CMEA-countries expanded given Romania’s adherenceto CEFTA: exports rose by 4 percent, but despite the traditional commercial ties Romaniahad with this region, they only represented little over 7 percent of total. In exchange,imports from these countries ran at USD 1,091 million (10 percent of total imports), about49 percent higher from 1997, which made the trade deficit with these countries toexceed USD 480 million, over three times higher than in 1997. This developmentpinpoints the slow pace adjustment of many domestic manufacturers to foreigncompetition on the domestic market and proves the discrepancies of the sectoralpolicies implemented by other CEFTA countries, which put Romanian producers at adisadvantage compared to their trade partners.

65.3. Trade relations with developing countries shrank from 1997. Exports were over 27percent lower from 1997 (to USD 1,349 million) and imports were 17.5 percent lower fromthe same period (to USD 1,321 million), therefore the trade balance was still on surplus.

65.4. Trade relations with former USSR-countries contracted in 1998 versus 1997.Romanian exporters became more reluctant to the Russian Federation market in thewake of the crisis the latter had experienced. Economic difficulties also faced by otherformer Soviet countries added to the reasons behind the plunge in exports, whichtotalled nearly USD 349 million, i.e. less than 66 percent of the 1997 achievements, afterhaving grown for two years in a row. Imports of natural gas and crude oil dived as aresult of restructuring of the chemicals and petrochemicals sectors. Total imports fromthis region mounted to USD 1,263 million (19 percent lower than in 1997), and the tradedeficit with these countries reached USD 914 million.

C. Prices, earnings and employment

66. Prices increased moderately in 1998, the monthly average inflation rate (2.9 percent)being 5 percentage points lower than that of 1997. Almost one fourth of the rise inconsumer prices can be attributed to some corrective factors such as: adjustment of


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administered prices, services in particular, enforcement of new VAT regulations andmodification of excise duties, chiefly for oil products. Tax-related measures taken at theoutset of the year generated inflation bouts in the first two months of the year. Theslippage of incomes policy and the depreciation of domestic currency towards the year-end rekindled inflation.

Consumer Price Index in 1998

100

110

120

130

140

150

160

170

180

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

index; previous December=100

services

goods

total

67. Consumer prices in December 1998 were 40.6 percent higher from a year ago, withtariffs for services posting the heftiest increases (over 68 percent). Price increases weremoderate for food items (26.5 percent), but considerably high for some non-food items,as a result of corrections of administered prices; i.e. the price of electric energy was inDecember 1998 almost 142 percent higher than at end-1997, and the price of naturalgas was 95.7 percent higher.

68. Wage policy pursued in 1998 was not correlated with the other measures aimed atsuppressing inflation.

68.1. In the first half of 1998, under the pressure of trade unions, the governmentimplemented a wage indexation scheme according to which even wages of employeesin state-owned loss-making and insolvent enterprises went up. The effects of thismeasure were partly offset by the constraints exerted by the other anti-inflationarypolicies, monetary and foreign exchange policies in principal, so that monthly inflationrates recorded a downtrend in March through August.


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68.2. Towards the end of the year, the indexation scheme was removed, but the tensionsaccumulated and some corrections to the salary system applied in the budget sectorheightened pressures of demand on supply, refuelling inflation at a moment whenmacroeconomic stability had become extremely fragile.

69. The monthly net average nominal wage and salary earnings in 1998 were almost 70percent higher than in 1997. The nominal rise in wages was based on the re-negotiationof collective labour contracts, indexations granted, and mostly the modification oflegislation regarding the status of some categories of employees (in the fields of health,education, public administration) which rendered the wage policy applied in the publicsector incompatible with the priorities of this stage. The wage increases in education andhealth, although granted at an inappropriate time, under pressure from trade unions, canbe seen as justified corrections; the wages of these categories of employees are stillbelow the average wage in the economy. As far as public administration is concerned,the situation is different, the wage policy applied causing a more than twofold increase inthe average wage from a year ago.

70. The real wage and salary earnings were 6.8 percent higher in 1998 compared to1997. The purchasing power of wages evolved unevenly in the economy: in industry,transports and trade it grew less than the average in the economy, while in education,health, social security and public administration, real wages rose higher than theaverage wage in the economy (by 8 to 25 percentage points).

71. Labour force experienced further changes. Large number of retirements, widerunemployment, and the negative balance of individuals’ migration abroad entailed thedecline in the number of employees involved in GDP formation. The rise in the number offree-lancers or family associations in agriculture, trade and services changed thestructure of the employment to the detriment of employees.

72. The number of employees at end-1998 was 5,024.8 thousand persons, 130 thousandless from a year ago. By sector, the evolution of the number of employees evinceddifferent trends.

72.1. Retrenchment of personnel affected more or less all the key economic sectors. Thesectoral distribution of the reductions was the following: more than 276 thousandpersons in industry, almost 35 thousand in transport and storage, 11 thousand inconstruction and 10.6 thousand in the financial, banking and insurance sector. Onaverage, 6 percent of the persons employed in economy a year earlier were laid off, butthe percentages were higher in the financial, banking and insurance sector (17.5percent), manufacturing (12.3 percent) and transports (10.3 percent) followingrestructuring of the said sectors.


38

72.2. The number of employees went up in agriculture (by almost 17 percent), in healthand social assistance (by 3.8 percent) and in hotel and restaurant sector, due to thedevelopment of the private sector, which absorbed part of the labour force shed in theprevious years following the restructuring of state-owned enterprises.

72.3. The rise in the number of employees in public administration (by 0.8 thousandpersons) was another negative effect besides the substantial rise in wage and salaryearnings. The staff and the wage policies proved to be at odds with the belt-tighteningpolicy, even in a sector in which the government had initially decided to take severemeasures to cut expenses.

Employees in Industry and Unemployment Rate in Economy in 1998

2,000

2,200

2,400

2,600


thousands of persons

8

9

10

11percent

number of employees in industry

unemployment rate (right-side scale)

73. Unemployment expanded versus 1997. Unemployment rate grew slightly at thebeginning of 1998, it decreased somewhat in summer (as a result of the rise in seasonalemployment) and crept up in the fourth quarter. Unemployment rate was 10.3 percent inDecember (1,025 thousand unemployed), 1.4 percentage points higher from a yearearlier.

D. Restructuring and privatisation

74. Restructuring and privatisation were the weak points of the 1998 reform programme.The cabinet reshuffle in April preceded by a period of political controversies andfollowed by a period of accommodation for the new cabinet, relegated restructuring andprivatisation to the background, at least in the first half of 1998. These two processesbecame again priorities on the new government’s agenda and were firmly launched inlate 1998, when tensions in the economy and external constraints imposed it.


39

75. Restructuring of loss-making industrial enterprises and inefficient state-ownedagricultural farms was paid attention by the authorities, but the measures taken failed toput the economy on a sound footing. Greater success enjoyed the measures focusing onthe state monopolies (régies autonomes in the field of industry, telecommunications andtransports) and on the state-run banks.

75.1. Restructuring of the mining and oil processing sectors, initiated in mid-1997, waspursued further and steps were taken to close down oversized refineries dependent onoil imports. But the steps taken led in many instances to the replacement of expensescaused by non-profitable operation by expenses incurred for preservation of someproduction capacities.

75.2. The conversion of national régies autonomes into commercial companies andpreparations for their privatisation started. In some cases, however, restructuring wassuperficial, addressing organisational aspects rather than the basic ones meant toimprove the activity. CONEL, the electricity company, is a case in point: productivity didnot increase after restructuring measures were taken, as the company remainedoverstaffed.

75.3. One key objective of the 1998 programme was the restructuring of state banks andpreparations for their privatisation. The objective was attained in the case of BancaRomânã pentru Dezvoltare and Banc Post. Preparations for privatisation of two banks infinancial distress (Banca Agricolã and Bancorex) also included rehabilitation measurestaken by the Ministry of Finance (at the expense of widening the budget deficit) and theNBR. In neither case the measures taken brought so far the desired rehabilitation.

76. Privatisation failed to meet expectations, but it gained more speed compared to thepreceding years. In 1998, the capital privatised represented 8 percent of the SOF’s initialportfolio versus 10 percent, cumulative results during 1990-97.

76.1. The auction was the measure used most frequently in 1998 for the privatisation ofsmall and medium-sized companies. In the case of big enterprises negotiationsprevailed, but ownership transfers through the Bucharest Stock Exchange and RASDAQmultiplied.

76.2. The biggest companies privatised in 1998 were Banca Românã pentru Dezvoltare(taken over by Société Générale Group) and Romtelecom (in which the Greece-basedOTE took over a 35 percent stake). By offering large and profitable companies for sale,the Romanian Government clearly stated its commitment to speed up privatisation.

76.3. At end-1998, negotiations were in an advanced stage with the followingcompanies and banks: General Electric Capital and Banco Portugues de Investimento(which intended to buy a 35 percent and 10 percent stake, respectively, in Banc Post),the French carmaker Renault (interested in buying a 51 percent stake in Dacia car


40

factory in Piteºti), and the Turkish firm Akmaya (for a 65 percent stake in the oil refineryPetromidia Constanþa).

76.4. Although transfer of ownership in industry proved to be a long and cumbersomeprocess, at end-1998 privatisation was concluded in the cement industry and was in anadvanced stage in plastic materials processing, building materials sector and ready-made clothing (in a range from 85 to 95 percent). Ceramics, glass and porcelain industryand some sectors of food industry (oil, bakery, beer and non-alcoholic beverages) wereprivately owned, in a range from 70 to 80 percent. The state still remained the managerof large metallurgical, chemical and heavy machine building enterprises the privatisationof which was hampered by the arrears accumulated in the last ten years to the state,banks and business partners.

E. Budgetary and fiscal developments

77. The government's programme for 1998 envisaged a budget deficit that could bolsterthe disinflation target in accordance with the resources available for its financing and thepossibility to ensure sustainable developments of both domestic and foreign debts.Thus, the deficit of the consolidated general government budget was envisaged to reach3.6 percent of GDP (0.1 percentage point below 1997 estimations). Given the relativelysmall volume of external financing, deficit targeting took account of the low monetisationof the economy, the need to ensure a corresponding level of credit to non-governmentand the estimated volume of privatisation proceeds. About 50 percent of the financing ofbudget deficit were to be achieved from external sources.

78. The draft of the consolidated general government budget took account of the following:

78.1. The shift of emphasis from direct taxation to indirect taxation envisaged decreasein direct taxes in order to stimulate saving and investment in the private sector andincrease in indirect taxes.

78.2. Further decentralisation of budget revenues with a view to gradually decentraliseresponsibilities regarding revenues to local budgets in line with the efforts made toreshape the structure of tax management.

78.3. The notable rise in reform-related expenditures meant, on one hand, to back therestructuring of the mining and energy sectors, loss- and arrear-making industries,agriculture, banking sector and, on the other hand, to ensure social protection for thelaid-off employees after restructuring.

78.4. Reform of public administration by shedding about 10 percent, on average, of thestaff of public institutions financed from the state budget. This objective, however, wasnot achieved; at end-1998, the staff in the public sector had increased, and the netaverage wage had risen by 22 percent in real terms.


41

79. The 1998 deficit of the consolidated general government budget accounted for 3.3percent of GDP. The primary surplus stepped up considerably, but structural deficitstuck to a level similar to that of 1997. The cut in budget expenditures did not help solvethe problem faced by social security and health insurance, therefore, the reform of thepension system proves to be imperative, at least from the budgetary impact standpoint.

Conventional deficit/surplus, calculated as a difference between receipts and payments,represents the public sector borrowing requirements. Revenues do not include domesticand external borrowing. Payments do not include public debt repayments during therespective year, but include paid interests.

Primary deficit/surplus of the consolidated general government budget excludes from the conventional deficit expenditures representing the interest on public debt and is used in tax adjustment analysis.

Structural deficit/surplus excludes from the conventional deficit privatisation receipts that are considered as a financing source, not as a revenue source.

bill. lei % of GDP bill. lei % of GDPConventional deficit -9,674 -3.5 -11,253 -3.3Primary surplus +541 +0.2 +5,520 +1.6Structural deficit -10,959 -4.4 -14,432 -4.3

Source: Ministry of Finance

19981997

Table 3. Consolidated general government balance

79.1. Consolidated general government revenues accounted for 35 percent of GDP, up4.4 percentage points on a year earlier. This development was due to the rising share ofindirect tax revenues (from 9.1 to 12 percent) that exceeded the rise in direct taxrevenues as a share of GDP (from 17.7 percent in 1997 to 18.9 percent in 1998). Indirecttax revenues accounted for 34.2 percent of total consolidated general governmentrevenues compared to 29.6 percent in 1997, while the share of direct tax revenues was54.2 percent as against 57.4 percent in 1997.

79.2. Consolidated general government expenditures were 38.3 percent share-to-GDPversus 34.1 percent in 1997. Interests related to public debt experienced the heftiestrise, from 3.7 percent in 1997 to 4.9 percent of GDP in the year under consideration.


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( ) percent of GDP

National public budget Extrabudgetary funds-13,482 bill. lei 1,373 bill. lei

(-4.0) (+0.4)

Government budget Unemployment fund-10,401 bill. lei -407 bill. lei

(-3.1) (-0.1)

Local budgets Health insurance74 bill. lei fund(+0.02) 1,510 bill. lei

(+0.4)

Social security Otherbudget 270 bill. lei

-3,155 bill. lei (+0.08)(-0.9)


1,844 bill. lei(+0.5)

Adjustments

(+1.0)3,418 bill. lei

S O F

Consolidated general government budget-11,253 bill. lei

(-3.3)

Consolidated general government budget

(-1.3)

Foreign borrowings to ministries

-4,406 bill. lei

80. Unlike the 1992-97 period, in 1998 the tax burden went up, reaching 30.9 percentcompared to 26.7 percent a year earlier. Although on the rise, the tax burden is yet belowthe level of this indicator in most of the countries heading for integration with the EU.However, this indicator does not take into account the overdue payments to the budget.

81. Government budget deficit for 1998 was 3.1 percent share-to-GDP, 0.5 percentagepoints lower from the 1997 level.

81.1. Government budget revenues were further increasing as a share of GDP. Thereasons behind this development were the rise in value added tax (22 percent from 18percent) and the growth of excise duties on oil products, crude oil and natural gas.Direct taxes reduced their contribution to budget revenues due to changes in the taxscale, cut in the maximum taxation rate from 60 to 45 percent and resettlement oftranches of taxable incomes.

81.2. Government budget expenditures expanded by 1.8 percentage points comparedto 1997 as a share of GDP. The increase in expenditures destined to interests for publicdebt, which accounted for 21.4 percent of total expenditures, versus 17.4 percent in theprior year, made the largest contribution to the expansion of state budget expenditures.The lack of external financing and the pressures on the money market (partly induced byailing banks) were behind the acceptance of ever increasing interest rates on credit togovernment.

81.3. The government budget deficit at end-1998 was lei 10,401 billion. The distribution ofthis deficit along the year was uneven, as 68 percent of it was recorded in the first


43

semester. Deficit distribution by quarter was the following: 28 percent in the first quarter, 40percent in the second, 2 percent in the third and 30 percent in the last quarter of 1998.

Tax Burden

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1992 1993 1994 1995 1996 1997 1998

lei billions

0

10

20

30

40

50percent

GDP

tax revenues

tax burden (right-side scale)

82. In 1998, the budget deficit was entirely financed from domestic sources. The slowpace of structural reform, political uncertainties and confusing and contradictory signalsregarding the economic policy stance, which deteriorated Romania’s image abroad,rendered borrowing at longer maturities and reasonable costs more difficult. Accountshould also be taken of the effects of the worsening conditions on the foreign market inthe wake of the crises in Southeast Asia and Russia. The lack of external resources ledto growing pressures from public sector borrowing requirements on domestic market(net credit to government advanced by 92.5 percent in nominal terms and by 36.9percent in real terms). The central bank did not accommodate the growing demand, asthe monetisation of the deficit would have had a dramatic impact on the economicenvironment by fuelling inflation. Therefore, the crowding-out effect gained momentumand interest rates went up, interests on credit to government in particular.

83. As the Ministry of Finance used only few new instruments to finance the budgetdeficit, therefore, it further financed this deficit through the General Account of Treasuryand government securities issues destined, for the most part, to the banking system,which put further pressure on interest rates and the interbank money market. Afavourable development was the placement of government securities via the multipleprice method starting May 1998, which entailed a slight decline in the costs of publicsector borrowing.


44

Table 4. Revenues and expenditures of 1998 Government budget

- % o f G D P -1 9 9 7 1 9 9 8 1 9 9 7 1 9 9 8

1. Revenues 43,834.5 67,215.5 17.5 19.8 of which:D i re c t ta x e s 2 0 ,5 1 6 .7 2 2 ,6 0 9 .0 8 .2 6 .7 P r o f i t t a x 1 0 ,6 3 8 .9 1 0 ,8 4 5 .6 4 .2 3 .2 W a g e ta x 9 ,3 0 1 .1 1 0 ,0 9 4 .9 3 .7 3 .0 O th e r 5 7 6 .7 1 ,6 6 8 .5 0 .2 0 .5

In d i re c t ta x e s 1 9 ,5 3 4 .2 3 7 ,9 6 3 .6 7 .8 1 1 .2 V A T 1 1 ,6 8 1 .3 2 2 ,4 9 3 .2 4 .7 6 .6 T u r n o v e r t a x , e x c i s e d u t i e s 4 ,2 8 8 .7 8 ,4 3 1 .3 1 .7 2 .5 C u s to m s d u t ie s 3 ,3 5 2 .7 5 ,7 4 1 .4 1 .3 1 .7 O th e r 2 1 1 .6 1 ,2 9 7 .8 0 .1 0 .4

C a p i ta l g a in s 2 ,2 8 4 .9 3 ,2 2 8 .1 0 .9 1 .0

O th e r r e v e n u e s 1 ,4 4 5 .7 3 ,4 1 4 .8 0 .6 1 .0

2. Expenditures 52,896.6 77,616.6 21.1 22.9of which:

P u b l ic s e r v i c e s 1 ,8 5 7 .9 2 ,8 6 6 .9 0 .7 0 .8 D e fe n c e , p u b l ic o r d e r , a n d n a t io n a l s e c u r i t y 7 ,5 4 2 .2 1 1 ,9 1 2 .7 3 .0 3 .5 S o c ia l a n d c u l tu r a l s e r v i c e s 1 6 ,6 2 6 .3 2 2 ,2 6 7 .7 6 .6 6 .6 S e r v i c e s a n d p u b l ic d e v e lo p m e n t , h o u s in g , e n v i ro n m e n t , a n d w a te r p r e s e r v a t i o n 5 6 0 .8 9 4 6 .8 0 .2 0 .3 E c o n o m ic a c t iv i t ie s 7 ,7 7 8 .9 1 0 ,6 8 2 .6 3 .1 3 .2 O th e r 1 ,0 3 2 .0 1 ,6 2 9 .0 0 .4 0 .5 T r a n s fe r s f r o m g o v e r n m e n t b u d g e t 6 ,8 6 2 .1 8 ,3 9 6 .9 2 .7 2 .5 L o a n s g r a n t e d 1 ,3 9 6 .9 2 ,1 3 2 .4 0 .6 0 .6 In te r e s t p a i d a n d o t h e r e x p e n d i tu r e s r e l a t e d t o p u b l i c d e b t 9 ,2 1 4 .6 1 6 ,6 1 1 .5 3 .7 4 .9

3. Deficit -9,062.1 -10,401.0 -3.6 -3.1Source: Ministry of Finance

- b i l l . l e i -A c h ie v e m e n ts

83.1. During 1998, the nominal value of the 68 issues floated by the Ministry of Financewas lei 41,771 billion. The issues in lei had maturities ranging from 20 days to 12 monthsand were launched both by auction and public subscription (lei 4,210 billion).Government securities sold by auction included discount government securities (lei27,408 billion) and interest-bearing government securities (lei 10,153 billion).

83.2. Foreign exchange denominated issues on the domestic market totalled USD 353million and had maturities between 6 months and two years, with interest rates between7.5 and 8 percent per annum.

83.3. In 1998, the Ministry of Finance also borrowed from individuals by launching fiveissues of Treasury certificates, worth lei 499 billion, taken up entirely. The interest rates onthese certificates were about 10-15 percentage points higher than that offered by banksfor Treasury certificates with the same maturities, but they were lower compared to interestrates requested by banks.


45

83.4. Average maturity of government securities in circulation was reduced to 145 daysat end-1998 from 198 days at end-1997, which is indicative of the increasing financingdifficulties in the domestic market under the conditions of ever higher real interest rates.

84. Local budgets recorded a surplus of lei 73.8 billion at end-1998, i.e. 0.02 percentshare-to-GDP, close to the 1997 level.

84.1. Local budget revenues totalled lei 13,453 billion (4 percent of GDP), decliningslightly from the previous year. The drop in the share of amounts broken down fromwage tax (from 44.4 to 37.2 percent) was partly offset by the 5.8 percentage point rise inthe share of own revenues, which accounted for 24.7 percent of total revenues. Taxrevenues grew on account of taxes and duties from population, the share of which wentup 5 percentage points, to 9.6 percent. Subsidies from the government budget climbedby 1.4 percentage points on account of subsidies destined to communal roads andwater supply to villages.

84.2. Local budget expenditures equalled lei 13,379.2 billion, i.e. a 0.2 percentage pointdecline as share-to-GDP. Structural analysis shows that expenditures for services, publicdevelopment, dwellings, environment and water preservation remained the mostimportant item (their share in total expenditures increased by 2.4 percentage points).The share of expenditures for public services rose 5.5 percentage points, while theshare of expenditures for social and cultural services, health in particular, dropped 8.4percentage points.

85. At end-1998, social security budget recorded a deficit of lei 3,155 billion (0.9 percentof GDP), of which 48 percent was recorded in the fourth quarter. This state of affairspinpoints the considerable amounts of corporate arrears to the social security budget forwhich a zero deficit had been targeted. The concentration of revenues and expendituresin the last quarter of 1998 was attributable to enforcement of Emergency Ordinance No.31/1998 on putting together funds in the state-administered social security budget andfunds destined to payment of pensions to persons who had been employed in the fieldsof national defence, public order and national security.

85.1. Social security budget revenues ran at lei 23,382.9 billion, i.e. 6.9 percent of GDP(a 1,6 percentage point rise from the previous year). The share of own revenues steppedup from 86 to 88.4 percent, while the share of subsidies from the state budget dippedfrom 13.9 to 11.6 percent.

85.2. Social security budget expenditures totalled lei 26,537.8 billion, i.e. 7.8 percent ofGDP. The growth by 2.5 percentage points in these expenditures as a share of GDPcompared to 1997 was induced by the indexation of pensions throughout the year andtheir re-correlation towards year-end.


46

86. Domestic public debt (excluding government’s financial obligations to the StateTreasury) summed lei 26,919.1 billion at end-1998 (7.9 percent of GDP), a 2.9percentage point rise in the share-to-GDP versus 1997.

F. Balance of payments and international investment position

87. Current account deficit reached the highest value (USD 3,010 million) since 1990,but as share of GDP (7.9 percent) it was surpassed only by the 1992 deficit. The currentaccount deficit for 1998, which is twice the average for the 1991-97 period, and thesubdued domestic demand were the reasons behind the 7.3 percent fall in GDP. Thewidening by 40 percent of the 1998 deficit from the prior year cancelled out the slightdrop in the 1997 deficit. The deficit grew mainly on account of the rise in net imports ofgoods and services as well as the expansion of earnings repatriated by foreigninvestors. The evolution of the current account deficit was uneven during the year: over90 percent was recorded starting with the second quarter, and the peak (over 38percent) was recorded in the fourth quarter, following massive imports of consumer goods.

- mill. USD -1997 1998

a) Trade balance (goods) -1,980 -2,611 - exports (fob) 8,431 8,300 - imports (fob) 10,411 10,911b) Services - net -414 -503c) Incomes - net -322 -513d) Current transfers - net 579 617Current account balance -2,137 -3,010

Table 5. Current account

88. Depreciation of the leu in late 1998, due mainly to the rise in the demand for importsduring the year, failed to counteract the domestic causes behind widening of the deficitamong which are the following: stagnation of restructuring and privatisation, relaxation ofincome policy, tax facilities provided to some importers as well as the real appreciationof the leu in the first half of 1998 that was bolstered by capital inflows. The unfavourableconditions on the foreign market, i.e. low prices for Romanian exports and difficultaccess to external financing have further widened the current account deficit.

89. The lack of an arrangement with the IMF, the unfavourable external conditions andthe downgrading in the country’s rating entailed the drop in capital inflows from newmedium- and long-term borrowings, which had been the chief source of financing in theprior year. Under these conditions, direct investment, which stepped up considerably inthe wake of the Romtelecom privatisation in December 1998, became the major source


47

for deficit financing, followed by drawings from previously contracted foreign borrowings,foreign reserve assets managed by the NBR, and portfolio investment inflows.

90. The widening of the current account deficit was principally due to the rise in the tradedeficit, although its share in the current account deficit dipped from 92.6 percent in 1997to 86.7 percent in 1998. The coverage of imports through exports fell to 76.1 percent in1998 from 81 percent in 1997, due to stagnation of exports and growth in imports. Theservices balance recorded a USD 503 million deficit, up over one-fifth versus 1997, withmore than half of the annual deficit being recorded in the fourth quarter. Similar to thetrade balance, contribution of services to the current account deficit shrank from 1997.Compared to 1997, the 2 percent growth in the share of the deficit under “incomes” incurrent account deficit was chiefly caused by payments of interests related to medium-and long-term external debt. Traditionally on surplus, in 1998, current transfers balancesaw a 6.6 percent increase in net inflows from private transfers, in the form of cashtransfers from non-residents, PHARE assistance and bilateral assistance.

91. As for capital account, cash or in kind direct investment rose by two-thirds versus1997 to reach an annual volume of USD 2,040 million; the rise was mainly due to theprivatisation of 35 percent stake in Romtelecom. Privatisation receipts left aside, directinvestment hovered around USD 100 million per month, amount quite insufficient forrevamping requirements. The 85.3 percent cut in portfolio investment from 1997 pointsout the remote possibility to float new issues on foreign capital markets and the meagredevelopment of the domestic capital market that is not luring foreign investors. Thesephenomena also bear the hallmark of the contagion effects of external financial crises,particularly the one in Russia.

92. In the year under consideration, the Government’s foreign reserves managed by theNBR fell sharply (USD 818.7 million) chiefly in the second semester, because of externaldebt servicing and NBR’s intervention in the interbank forex market.

93. In 1998, the non-fulfilment of conditions under the stand-by arrangement with the IMFconcluded in 1997, the spill-over effects of financial crises in Southeast Asia, theoutbreak of the crisis in Russia and the downgrading in the country’s rating by worldrating agencies hampered the external financing. Thus, the Romanian governmentcontracted and guaranteed foreign borrowings of barely 26.6 percent of theindebtedness ceiling (USD 2.9 million) approved by the Romanian Parliament.

94. The balance on medium- and long-term external debt topped USD 9 billion, up 5.8percent from end-1997. Depreciation of the US dollar against other currencies contributedto the rise in the balance of external debt (contracted in other currencies) by USD 302.1million, net entries (drawings minus repayments) running at USD 220.8 million.


48

95. Indebtedness indicators posted unfavourable developments. The ratio between debtservicing and the export of goods and services went up from 25.9 percent in 1997 to34.6 percent in 1998, with the level considered critical equalling 25 percent of the exportof goods and services. This deterioration occurred alongside the fall in the export ofgoods and services and the growth of debt servicing. However, the share of totalexternal debt in GDP was 25.3 percent (100 percent critical threshold), and the share oftotal external debt in exports was 100.4 percent (200 percent critical threshold).Consequently, Romania is further a country with moderate indebtedness level.

Chapter IV. Monetary policy of the NBR in 1998

49

Chapter IV. Monetary policy of the National Bank of Romania in 1998

A. Monetary policy

96. The declared objective of monetary policy was to reduce inflation rate to 45 percentat end-December 1998, compared with end-December 1997. Although partiallysupported by fiscal policy, monetary policy was successful in reducing inflation rate to40.6 percent, just below the initial target. The central bank steadily followed the inflationtarget for 1998 in line with provisions of the NBR Act, according to which the primaryobjective of the monetary policy is to safeguard price stability, a traditional task of anycentral bank in most modern advanced economies. In this context, the following featuresof monetary policy were discernible in 1998:

96.1. Lowering of annual inflation rate from 151.4 percent to 45 percent stood for anambitious objective, starting from the close relationship between inflation and economicgrowth. The lasting decline in interest rates and hence rebound of the economy and ahigh level of medium- and long-term employment are conditional on steady disinflation.

96.2. When producing the inflation projection, the authorities excluded the possibility toattain it only by monetary policy stance as disinflation should be underpinned by variouspolicy areas, such as fiscal, incomes and structural policies; however, during the periodunder review, monetary policy has been insufficiently buttressed by the other policies.

96.3. As far as inflation is concerned, Romania remained a laggard among theneighbouring countries in transition. This state of affairs reflects the structural roots ofinflation, weak credibility of the government’s economic policy and perpetuation of theimbalance between aggregate demand and supply. In such a framework, the only wayto put the economy on the right track is to encourage supply; a choice for stimulatingdemand would bring forth an inflation flare-up and widening of external deficit.

97. The tight monetary policy stance in 1998 was instrumental in lowering inflationmarkedly, as the central bank’s monetary policy was geared to meet the challenges ofthe economic environment. Monetary policy was successful in alleviating substantiallythe inflation expectations and reducing the impact on prices of both tax adjustments andadministered price increases through a severe control over monetary variables;maintaining a tight monetary policy stance, the monetary authority curbed theaccelerated depreciation of the exchange rate of the leu and cushioned its effect oninflation in the latter half of 1998.

98. The plunge in world prices (especially prices for raw materials and petroleumproducts), as well as the delay in adjustment of some domestic prices (which will affectthe developments in 1999) supported the attainment of an inflation rate 4.4 percentagepoints lower than the target.


50

99. In the absence of a consistent support from other areas of economic policy,monetary policy pursued with a view to attaining the inflation target for 1998 impliedsubstantially high costs for the Romanian economy, such as: (i) high interest rateincreases; (ii) the crowding-out effect on viable sectors and adverse selection; and (iii) ahigher-than-expected contraction of output. The central bank, in turn, bore the increasein deposit-taking cost to maintain monetary base within targets. In achieving this goal,under the conditions of inconsistent policies, especially incomes policy, the central bankdeliberately tolerated high interest rates associated with absorption of excess liquidity inthe banking system, with unfavourable effects on financial results of the NBR.

100. The lack of synchronisation between economic policies confined the manoeuvringroom for the conduct of monetary policy, as follows:

100.1. An even tighter monetary policy to bring inflation rate closer to that of countries intransition (10 - 20 percent per annum) regardless of the stance of other policies. Anoption for such a monetary policy stance would entail the risk of an abrupt decline inoutput, without credibility gain, because such a policy would be thought of asunsustainable.

100.2. A change in monetary policy stance under the circumstances of limited supportby other economic policies to disinflation process. A more accommodative monetarypolicy pursued by the central bank would sap its credibility. Moreover, a lax policy mixwould entail an abrupt inflation slippage, difficult to rein in, and a fast loss of disinflationgains.

100.3. Maintenance of a tough monetary policy stance accommodated to the inflationtarget agreed upon with the government, notwithstanding the limited support by otherpublic entities. This approach should be associated with a more transparent policy of thecentral bank to explain the importance of attaining the inflation target and the need forpursuing consistent economic policies to sustain macroeconomic stabilisation.

101. In order to attain this ultimate goal, in 1998, as in previous years, monetary policystrategy was based on monetary anchor, the main advantages of which are the directcontrol of monetary base by the central bank and close interlocking of monetaryvariables and inflation; inflation’s responsiveness to monetary base and broad moneymovements is prompt and clear. In the case of Romania, under the circumstances oflimited and predictable fluctuations of monetary base multiplier, keeping monetary baseunder control is one of the most efficient means by which money supply is brought to thedemand level, thereby keeping a tight rein on inflation. In addition, monetary anchorpreserves independence of monetary policy and is suitable for an economy facing bothmoney demand shocks and external competitiveness difficulties.


51

102. The arguments in favour of this approach took also into account the drawbacks theadoption of other monetary parameters as anchors, such as the exchange rate andinterest rate, would entail. The inappropriateness of adopting the exchange rate as amonetary anchor against the backdrop of the prevailing economic circumstances is alsoshown by most of the criteria a central bank takes account of when choosing themonetary policy anchor. Under the conditions of persistent high inflation rate, scarceforeign exchange reserves and severe external constraint such an option would beunsuccessful; apart from the unfavourable impact on reserve assets, leading to theirdepletion, the failure of this strategy would compromise effectiveness and credibility ofmonetary policy in the long run, while inflation would get out of control. In other words,because of dynamic domestic inflation, the exchange rate as an anchor would becomeunsustainable in real terms, while the resulting currency depreciation would fosterinflation expectations. One of the major drawbacks in adopting the exchange ratetargeting is that the use of the exchange rate as a monetary anchor depends onautonomous capital inflows.

103. Moreover, the uncertain relationship between the interest rate and inflation rate, aswell as the limited capability of the NBR to effectively influence the mechanism and thelevel of interest rates in both banking system and economy hinder the adoption ofinterest rates as an intermediate target for monetary policy, while the margin formanoeuvre of monetary authority is circumscribed by several factors:

103.1. For the time being, the central bank cannot have at hand highly efficientinstruments to influence the interest rates on money market. This state of affairs is duemainly to the position of the central bank as a net debtor to the banking system anddates back to 1997 when the NBR had to absorb excess liquidity by resorting to deposit-taking operations in order to sterilise the foreign capital inflows with potential inflationaryeffects. Apart from putting a brake on any type of credit, the interest rate on which wouldhave been relevant for financial market, the NBR takes deposits from banks at market-based interest rates.

103.2. The position of the NBR as a net debtor vis-à-vis the baking system createddistortions, such as disintermediation, thereby decreasing competition between banks inattracting resources and restricting lending; the interest rates practised by banks ondeposits and credits no longer reflect the demand/supply ratio on the money market.

103.3. The interest rates on money market reflect, to a large extent, market operators’expectations, which are very sensitive to inconsistencies of economic policy behaviour,and the authorities’ credibility.

103.4. The transmission mechanism, by which the impulses of interest rates onmoney market spread to credit and deposit markets, is stifled by financial market


52

imperfections (such as market segmentation, low competition, financial distress of somebanks, etc.).

103.5. Under the prevailing circumstances governing the Romanian economy, when theimpact of interest rate on money demand appears to be lower than in market-basedeconomies, and amid soft-budget constraints on enterprises, the interest rate targetingcould end in failure.

104. In searching for its anchor, the monetary policy was aimed to establish an indicatorto enhance its effectiveness, under the conditions specific to a market economy. TheNBR used the monetary base as a monetary anchor and this method has proved itsworth in keeping a tight rein on inflation. However, the lack of synchronisation under theeconomic policy mix had detrimental effects on both interest rate and exchange rate.

Average Interest Rates in 1998

0

20

40

60

80

100

120

140


percent per annum

lending rate (for non-banks)

deposit rate (for non-banks)

on interbank transactions

on government securities

105. Aware that its actions have a limited impact on interest rates since its primaryobjective is controlling monetary base, at mid-1998, the NBR made, however, severalattempts to lower interest rates. This undertaking failed since it was not consistent withthe prevailing economic conditions and was contrary to market operators’ expectations.Consequently, shortly thereafter the interest rates rose again. This experience brings tothe fore the following conclusions:

105.1. Money market functions smoothly and market-related forces prevail over thecentral bank’s actions that are not backed by economic conditions.

105.2. A central bank has limited powers in controlling simultaneously more than one


53

monetary variable. In the case of the NBR, lowering of interest rates is unachievableunder the conditions of high inflation expectations, low saving, and financing of thepublic deficit from domestic resources.

106. Against the background of complex and rapidly changing factors with a strongmonetary impact, as well as following Law No. 101/1998 (NBR Act), which came intoforce on 1 July 1998, the central bank became particularly concerned with theimprovement and adjustment of its instruments to the provisions of the new law. Amid thepeculiar conditions that prevailed in 1998, there was a pressing need for the centralbank to enhance the flexibility of monetary policy instruments and strengthen itscapability to use the instruments in accordance with its goals. Rapid movements ofliquidity conditions in the banking system, not subject to the central bank’s intervention,imposed a change in the weight of instruments used by the NBR to fend off the impact ofliquidity autonomous factors.

107. Refinancing from the NBR stood for the least efficient instrument of monetary policyin 1998. Average daily refinancing credit dropped by lei 184.8 billion on the account ofrepayment of both preferential credits and credits granted circumventing the provisionsof banking regulation that had been supplied in the previous years. After slowingsignificantly since mid-1998, repayment of this credits came to a halt towards the end ofthe year. At year-end, the NBR’s refinancing credit portfolio amounted to lei 555.6 billion,accounting for only 2.9 percent of the average level of monetary base.

107.1. After having recorded low levels in January and February, lombard credit wassuspended prior to the coming into force of the new NBR Act, according to whichoverdraft credit is banned.

107.2. Since discount and lombard rates could no longer influence the costs of banks’resources, they underwent only one change during 1998. Since 1 August 1998, discountrate has been lowered to 35 percent from 40 percent and lombard rate has been set at95 percent from 140 percent. This move was intended to strengthen the positivecorporate expectations concerning deceleration of inflation rate.

108. Since 1998, the minimum reserve mechanism has been more actively used, mostlyas a result of permanent excess liquidity of the banking system involving high costs forthe central bank to absorb it.

108.1. The minimum reserve ratio was raised from 10 percent to 12.5 percent in February1998. Unlike banking systems where the central bank is a net creditor to banks, in theRomanian banking system the rise in minimum reserve ratio did not restrict banks’lending behaviour, the additional costs notwithstanding. This step brought about thedecline in banks’ excess reserves and fall in the central bank’s absorption costs.


54

108.2. Regulation on minimum reserve requirements that entered into force in August1998 was aimed to make this instrument comply with the provisions of the NBR Act andto enhance efficiency of the central bank in conducting monetary policy. The mainchanges in minimum reserve mechanism provided for the expansion of the reserve baseand introduction of a fluctuation corridor for banks’ reserves by setting upper and lowerlimits for the required reserves. Moreover, reserve requirements ratio for lei depositsstepped up to 15 percent from 12.5 percent, while reserve ratio for forex deposits wentdown to 15 percent from 20 percent.

109. The decision to raise minimum reserve ratio was a necessary step to confirm thetoughness of monetary policy (given the adoption of the provisions of Article VIII of theIMF’s Articles of Agreement) and to diminish the net debit position of the central bankvis-à-vis the banking system. By proceeding to a two-step increase in reserverequirements, the NBR aimed to achieve not only monetary policy objectives but also toreduce liquidity costs as much as possible. The effects of the revised reserverequirement regulation can be summarised as follows:

109.1. Large fluctuations of banks’ reserves flattened, reflecting a more cautious andstrict management of liquidity.

109.2. The interbank market expanded, with very short-term transactions (from one dayto one week) taking hold of.

109.3. Unreasonable high speculative movements on the foreign exchange market werediscouraged.

109.4. However, the interrelationship between the new reserve requirements mechanismand severe control over liquidity in the banking system aggravated financial difficulties ofailing banks, which after a calmer period started to record large reserve deficits sinceAugust 1998. The upward trend in interest rates on money market added to,exacerbating difficulties of distressed banks.

110. The NBR’s operations in the money market reached a peak in 1998, and includeddeposit-taking operations, government securities transactions, and foreign exchangemarket transactions. The use of monetary instruments was subject to severe constraints,which entailed additional efforts to keep monetary base under control, on the one hand,and conveyed distorted signals to the money market, on the other; the lack ofsynchronisation between monetary policy instruments triggered the increase in interbankinterest rates.

110.1. Despite the 12.5 percent increase in minimum reserve ratio in February 1998, inthe first half of the year, the central bank resorted widely to deposit-taking as thepreferable means for absorbing large amounts of excess liquidity; the average amount ofdeposit-taking operations by the NBR stood at about 48 percent of total interbank deposits.


55

110.2. Since August 1998, when reserve requirements ratio has been raised again,deposit-taking turned from an instrument for absorbing excess liquidity into a mechanismfor counteracting temporary liquidity fluctuations; at year-end, the average volume ofdeposits taken from banks fell to 10.4 percent of interbank deposits.

110.3. Apart from changes in minimum reserve ratio, the excess liquidity in the bankingsystem and hence fluctuations of deposit-taking operations turned heavily dependent onthe discretionary intervention of the central bank in certain situations either to prevent theoutbreak of a banking crisis or to indirectly back up the Ministry of Finance to finance theTreasury deficit. Under these circumstances, deposits taken from banks with a view tokeeping monetary base under control put a heavy burden on the NBR‘s expenditureside; the cost of absorbing surplus liquidity through deposit-taking operations equalledlei 2,340 billion in 1998, pointing out a fourfold increase in absorption costs from theprevious year.

110.4. According to international practices and in compliance with Maastricht Treatyrequirements, the NBR is not entitled to buy government securities on the primarymarket. For monetary policy purposes, the central bank may purchase governmentsecurities on the secondary market, either to inject liquidity or to build up its governmentsecurities portfolio. These operations have been more actively used since the thirdquarter of 1998. The central bank frequently resorted to outright purchases as a meansof providing the banking system with more liquidity, while outright sales were conductedsporadically and on a small scale. Contrary to the objective of the central bank to tightenliquidity, the intensification of government securities operations added to the liquidityproblems encountered by some state-run banks, as well as to the increased needs forbridging the budget deficit from domestic resources. Following the increase in itsgovernment securities portfolio from a nominal value of lei 3,257 billion at end-December1997 to lei 9,361 billion at end-December 1998, the central bank injected sizeable amountsof liquidity. Against this background, the conflict between the function of the central bankas a lender of last resort and its function as the guardian of price stability deepened;conciliation of the two functions inflicted costly operations for surplus liquidity absorption.

110.5. Although foreign exchange operations were subordinated to the exchange ratepolicy as a rule, they were conducted allowing for their impact on liquidity as well.Whereas these operations had a neutral impact on monetary policy in the first semester,they had significant monetary effects in the latter half of the year. Foreign exchangesales made with a view to supporting the national currency provided an underpinning tosterilisation instruments and liquidity management policy.

111. As the exchange rate is an important factor behind the inflation rate developmentand in correlation with other macroeconomic indicators it has a decisive impact onexternal competitiveness of the economy, the monetary policy conduct in 1998 washallmarked by the exchange rate development.


56

111.1. In the first semester of 1998, in its efforts to keep monetary base in check andcalm down inflation, monetary policy was supported by real appreciation of theexchange rate of the leu against the backdrop of capital inflows. With a view to achievinga fast deceleration of inflation, the currency appreciation was deliberately tolerated bythe NBR, as the exchange rate developed into an implicit and temporary objective ofmonetary policy. On the positive side, there is evidence of faster gains in disinflationeven under the circumstances of a less tight control over liquidity, which simultaneouslyaccommodated a real increase in domestic credit. The shortcoming of this approachwas a low external competitiveness of the Romanian economy, deepened by theabsence of supportive policies, which materialised in the decline of labour productivityamid wage costs hike.

111.2. Since August, the leu has followed a steep depreciation trend against thebackground of capital flight in the aftermath of the financial debacle in Russia and as aresult of concerns about the peak in payment of the external debt service in 1999.Accelerated depreciation of the leu imposed intervention of the central bank on the forexmarket to keep things in check. By its intervention, the central bank mopped up liquidity,meeting the goal of tightening control over liquidity, which in turn buffered the impact ofcurrency depreciation on prices and cleared the way for the disinflation process.

112. Disinflation, the primary objective of the central bank, cannot be fulfilled unlessmonetary policy is underpinned by various areas of economic policy; monetary policyought to be buttressed by a clearly defined, consistent set of policies that should beimplemented in a timely and well co-ordinated manner. From this perspective, theauthorities’ economic policy showed significant inconsistencies in 1998.

112.1. Fiscal policy provided an underpinning to the monetary policy by keeping budgetdeficit within targets, a performance achieved by the government notwithstanding thelow budget revenues due to faster-than-projected disinflation and against thebackground of high pressures on the budget owing to the sharp decline in output.

112.2. The almost exclusively financing of the budget deficit from domestic sourcesrepresented a major constraint on monetary policy. Moreover, apart from theunfavourable influence on monetary policy conduct and the additional efforts of theNational Bank of Romania to control liquidity, coverage of the budget deficit fromdomestic sources had a crowding-out effect on non-government sector and maintainedor even increased interest rates because of the gap between demand and supply oninterbank market. Given the low monetisation of the economy, domestic financing of thebudget stands for one of the reasons why the interest rates remain high. The public debtheld by banks (including the NBR) accounting for 28 percent of broad money was fourtimes higher than the average liquidity of the banking system at the end of 1998. TheNational Bank of Romania acted indirectly to facilitate coverage of the public deficit,thereby putting additional pressures on controlling liquidity of the banking system.


57

112.3. The experience of Romania in 1998 has shown that the budget deficit should besized up in terms of the economy’s capability to finance it, rather than according toaccepted standards of a manageable deficit. Given the reduced financial deepening ofthe economy, even the financing of a relatively low budget deficit poses difficulties. Themore so as the view that an increase in the budget deficit and its domestic financingwould be key to economic recovery and growth is deceitful. On the contrary, such anapproach would aggravate private sector’s resource shortage, thereby fostering long-term economic decline, amid the resurgence of inflation.

112.4. The restructuring process slowed down markedly, failing to buttressmacrostabilisation. Due to political uncertainties in the first part of the year, the reformprocess was virtually non-existent. This state of affairs was perceived by companies as arelaxation of the budget constraints and an invitation to further waste resources. In thecontext of current account convertibility and further increase in arrears to the budget,protracted restructuring resulted in: i) widening of the budget deficit and enhancementof efforts to finance it; ii) release of resources which are not efficiently used, includingincreased imports; and iii) creation of moral hazard problems by conveying negativesignals concerning the abandonment by the authorities of their commitment to continuereform, thereby undermining credibility of the forthcoming programmes.

112.5. Incidental or structural liquidity problems some banks had to contend with due todelay in their restructuring had harmful effects on monetary policy conduct as well.Absorption of surplus liquidity required additional efforts since in the absence ofeconomic policy measures the central bank’s intervention to support ailing banks wasthe only way to avoid outbreak of a financial crisis.

112.6. Wage policy was counterproductive as a result of the lack of positive decision-making, as real wages rose while output and labour productivity plunged significantly;consequently, competitiveness of the Romanian economy was strongly eroded. The laxincome policy was one of the causes that stood behind the fall in output. Apart fromdeterring output and stifling enterprises by imposing unbearable wage costs, such apolicy stimulated imports. Against the background of fast decline in domestic supply, thereal wage hike fostered the already excess aggregate demand, while measures to fendoff wage pressures put a heavy burden on monetary policy, which had to grow tighter.

113. Apart from the shortcomings of the transmission mechanism, the efforts of monetarypolicy to restore stability of the currency were undermined especially by the lack ofsupport from other areas of economic policy and by sluggish development of realeconomy. A more relaxed monetary policy stance against the background of an imprudentincomes policy, inconsistent fiscal policy and persistent soft budget constraints onenterprise level which were manifest in some economic sectors, would have undermineddisinflation gains and the authorities’ credibility, and would have endangered the medium-and long-term recovery of the economy.


58

113.1. Amid the lack of action of other areas of economic policy, by growing itsrestrictiveness monetary policy was successful in avoiding an even severer deteriorationof money demand, which under the conditions already mentioned showed inconsistencyand lacked visible signs of improvement.

113.2. After a considerable real fall in broad money (M2) in the first quarter of 1998,against the backdrop of a temporary resurgence in inflation, starting April, the Romanianeconomy moved into a slight remonetisation process. However, broad money reverted toreal negative values in October, proving the fragility of this process. Although the growthrate in M2 surpassed that of inflation rate by 8.3 percentage points during 1998, this wasdue to a 16.8 percent increase in M2 in December following the inflow of proceeds fromprivatisation of Romtelecom.

113.3. Household savings are a reliable indicator of money demand, the more so as theyaccounted for 36.5 percent of M2, the highest level since 1990; they grew slightly fasterthan broad money. However, household savings posted an uneven growth, recordingreal negative growth rates for a five-month period. Real positive growth rate in householdsavings reached as much as 9.2 percent during 1998.

113.4. The preference among depositors to save foreign currency enhanced around theturn of the year, when US dollar saving turned out profitable; however, the rise inhousehold forex deposits was lower than a year earlier. Compared with the previousyear, forex deposits, including companies’ deposits, remained unchanged as a share ofM2, notwithstanding a sharper currency depreciation.

113.5. Money velocity witnessed significant fluctuations throughout the year; at year-end,notwithstanding the unfavourable impact of the aforementioned factors, money velocitypointed out a slight improvement. Money demand also showed an improvement asillustrated by annual average money velocity.

B. Money and credit

114. At end-December 1998, broad money (M2) was 48.9 percent higher than at the endof 1997, totalling lei 92,530 billion. A glimpse upon broad money development during1998 shows that against the background of the monetisation process, the rise in M2outpaced inflation rate. It should be mentioned that monetisation process was manifestmostly in the second and third quarters; at the end of 1998, apart from currencydepreciation, which had a significant impact on the remonetisation process, inducing anincrease in the lei equivalent of foreign exchange component of M2, other incidental orseasonal factors contributed too (the large foreign exchange inflows from privatisation ofRomtelecom or interest payments with the Savings Bank paid down in December for thewhole year).

115. Narrow money (M1) rose moderately, experiencing an annual growth of 18 percent(from lei 18,731.1 billion at end-December 1997 to lei 22,109.8 billion at end-December


59

1998). That was tantamount to a 16.1 percent decrease in real terms. Components of M1evolved unevenly, posting month-to-month significant rises or substantial declines underthe impact of incidental factors; against the background of restrictive monetary policyand sharp currency depreciation during the last few months of 1998, people made eitherdomestic currency or foreign currency savings, according to the most favourableopportunity.

116. Analysis of narrow money shows that the growth in both currency in circulation anddemand deposits lagged behind that of M2.

Composition of Broad Money in 1998

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


foreign exchangedeposits

time andrestricteddeposits

householddeposits

demand deposits

currency outsidebanks

Broad Money in 1998

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000


lei billions; end of period

116.1. Currency outside banks expanded by 25.3 percent, thereby allowing furtherdecline of it as a share of M2 to 12.5 percent in December 1998 compared with 14.8percent in December 1997 and 17.7 percent in December 1996. Currency outside banksat end-1998 amounted to lei 11,523 billion, accounting for 3.4 percent of GDP(compared with 3.7 percent in the previous year). This encouraging developmentsuggests the decrease in cash payments in the Romanian economy.

116.2. Demand deposits rose by only 11 percent that was tantamount to a 21.1 percentfall in real terms. At end-December 1998, demand deposits totalled lei 10,584.7 billioncompared with lei 9,531 billion at end-December 1997.

117. Quasi-money rose by 62.2 percent, increasing by 6.2 percentage points as a shareof M2. At end-1998, quasi-money accounted for 76.1 percent of M2. Throughout theyear 1998 all components of this monetary aggregate recorded substantial increases in


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real terms; this phenomenon, which felt itself mostly in the first part of the year, provesrenewed confidence in the leu, thereby providing an incentive to disinflation.

117.1. Household savings in lei surged 53.6 percent (9.2 percent in real terms) from theend of 1997, summing lei 30,966.6 billion at the end of 1998. It should be mentioned thathousehold saving slowed considerably under the impact of faster depreciation of the leuin the latter half of 1998.

117.2. Corporate deposits in lei recorded a stunning increase, rising by 66.1 percent.Restricted deposits almost doubled, edging up 96.5 percent. This development reflectsefficient use of own resources (short-term deposits) and increased resort to letters ofindemnity and other restricted deposits which, under the circumstances of existingarrears, ensure that payments are made in a timely fashion.

117.3. Residents’ forex deposits surged about one fourth (25.1 percent or USD 554million), reaching USD 2,757.7 million. Part of this increase was attributed to receipt ofthe equivalent of 35 percent of Romtelecom shares. Analysis by category of depositorsshows increases in deposits with no change in ranking. Household deposits are in thelead, in an amount of USD 994.5 million, representing 36.1 percent of total deposits. Thestunningly high growth rate of household deposits in 1998 (32.8 percent) was driven byreal increase in wage and salaries, on the one hand, and by faster currency depreciationaround the turn of the year, on the other, hence the shift in preference among depositorsto save foreign currency rather than lei. Forex deposits of companies with majorityprivate capital accounted for 25.9 percent of total deposits (USD 714 million) and forexdeposits of state-owned companies represented 22.5 percent of total deposits (USD622.5 million).

118. Monetary base (calculated as a monthly daily average) leapt 49.2 percent to lei19,354.8 billion at end-December 1998. Development of the two components of M0illustrates the cautious monetary policy pursued by the National Bank of Romania.Currency in circulation expanded by 24.6 percent, while banks’ reserves with theNational Bank of Romania rose by 135.1 percent (from lei 2,789.8 billion to lei 6,560billion). Changes in minimum reserve requirements impacted the development of banks’reserves. The targeted minimum reserves maintained in lei rose in February and Augustby 32 percent and by 40 percent, respectively, following the two changes in reserverequirements mechanism (reserve ratio was raised in February and August and reservebase was expanded in August).

119. In contrast with 1997, expansion in broad money in 1998 was driven by increase innet domestic assets, which surged 68.1 percent to lei 77,737.4 billion from lei 46,215.1billion.

120. The above development was largely accounted for by an increase in credit to non-government, which summed lei 59,086.5 billion at end-1998, representing an annual


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growth of 64.6 percent (17.1 percent in real terms). In other words, the evidencesuggests that credit did not impair the economic growth, on the contrary, consideringthe real growth in credit to non-government, one might notice an expansionary lendingpolicy; the economic downturn in 1998 was mostly the consequence of the poor trackrecord of real economy.

Monetary Base in 1998

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000


lei billions; daily averages

banks' reserves with NBRcurrency outside banksvault cash

121. Against the background of real appreciation of the currency and a wide interestspread between credit in lei and credit in foreign exchange, the latter continued to becheaper than the former. Consequently, foreign exchange credit augmented by USD731.8 million (29.9 percent), amounting to more than USD 3,180 million. Whendenominated in lei, foreign exchange credit rose by about 77.3 percent owing to nominaldepreciation of the leu by 36.5 percent. Credit in lei surged 49.5 percent to lei 24,273billion at end-December 1998. Forex credit edged by another 4 percentage points (up to58.9 percent) as a share of bank credit as a result of the contrast between growth ratesof lei credit and forex credit.

122. Overdue credit remained clearly on the upward trend. The volume of overdue creditrose from lei 9,021 billion at end-1997 (25.1 percent of total credit to non-government) tolei 19,031 billion at end-1998 (32.2 percent of total credit to non-government). It isnoteworthy that despite more favourable credit conditions in foreign exchange lendingover 85 percent of overdue credit was accounted for by forex credit. A survey of overduecredit by banks reveals that overdue credit was concentrated in a few ailing banks.Excluding overdue credits of banks in distress, the volume of overdue credit dropped to


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lei 2,693 billion accounting for 8.4 percent of total credit, below the internationallyaccepted level of 10 percent.

Forex Credit and Credit to Private Sector as Shares of Credit to Non-governmentin 1998

50

55

60

65

70

75


percent

credit to private sector

forex credit

123. Analysis of credit to non-government by credit beneficiary shows the followingdevelopment:

123.1. Companies with majority private capital held 73.1 percent of credit to non-government compared with 59 percent in 1997. More than half of lending to privately-owned companies (52.4 percent) was on a 12-month period at most, suggesting thatborrowing was mostly intended to finance current activity. Investment credit, with longermaturities, accounted for 47.6 percent of total credit, of which medium- and long-termcredit accounted for 38 percent and 9.6 percent, respectively. Foreign exchange creditrepresented 67.8 percent of total credit. However, 38.3 percent of lending to companieswith majority private capital has not been repaid on due date.

123.2 Lending to companies with majority or wholly state-owned capital fell from 36.5percent to 21.9 percent as a share of credit to non-government. This reflects both theongoing privatisation process and banks’ reluctance to lend to loss-making companies.

123.3 Lending to households, albeit low, was on an upward trend, representing 5percent of total credit at end-1998 compared with 4.5 percent a year earlier. At end-1998, households’ overdue credit accounted for only 3.3 percent of total lending toindividuals.


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124. Analysis of credit to non-government by maturity shows the bias of both clients andbanks to resort to short-term borrowing (less than 12 months) as a result of short-timedecision horizon, mostly attributed to uncertainty surrounding inflation. Consequently,short-term credit rose to 56.5 percent as a share of total credit at end-1998 comparedwith 54.6 percent a year earlier. Medium- and long-term credits edged down from 33.4percent to 32.6 percent and from 12 percent to 10.9 percent, respectively of total credit.

125. The debit position of government to the banking system surged markedly. Netcredit to government edged up 92.5 percent, from lei 11,533.2 billion at end-1997 to lei22,202.5 billion at end-1998. It is worth mentioning that in the absence of externalfinancing the government borrowed on domestic market both lei and foreign currency.Accordingly, at end-1998, foreign exchange-denominated government securitiessummed USD 417.3 million compared with USD 75 million at end-1997. At end-December 1998 compared with end-December 1997, credit to government stepped upto 27.3 percent as a share of domestic credit compared with 24.3 percent.

126. The item “Other assets, net” was three times higher than that recorded a yearearlier, but it still accounts for a small percentage of total domestic assets (below 5percent). Capital accounts engendered much of the increase in the aforementioneditem, but when compared with the outcomes of the previous year, one might assert thatbanks’ profitability declined.

127. If in 1997 net foreign assets of the banking system contributed to monetaryexpansion as a result of large capital inflows, in 1998 this trend was reversed. Netforeign assets fell from USD 1,732.6 million at end-1997 to USD 1,351.8 million atend-1998, following the decline in forex assets of the National Bank of Romania. Thegold stock rose by 6.4 tonnes in 1998 and despite the drop in international gold price itsvalue increased from USD 867.5 million to USD 924.3 million. Banks’ foreign assetssurged from USD 554.4 million to USD 656.8 million, following the proceeds fromRomtelecom privatisation.

C. Money market

128. As the distortions caused by distressed banks and increasing pressures to bridgethe budget deficit from domestic funds left their mark on functioning of the bankingsystem, the signals sent by monetary authority through its tools were not alwaysaccurately perceived by money market, which is a crucial link of the monetary policytransmission mechanism. As a matter of fact, in a market-based economy the centralbank is not entitled to influence market-operators’ behaviour since it is regulated bymarket-related mechanisms; the central bank can only intervene by making use of itsindirect instruments.


64

129. In 1998, the interbank money market (the National Bank of Romania’s interventionexcluded) has shown an impressive expansion, especially since the revised mechanismof minimum reserve requirements was introduced in August. During July-December1998 the interbank deposits rose by 78.7 percent, reaching at end-December 1998 thehighest level, since the last ten years, i.e. lei 6,544 billion; interbank transactions followedsuit, peaking at lei 1,916 billion in November. This development was driven by increasein deposits attracted by two state-run banks in distress, on the one hand, and bymounting resort to market resources by other banks, against the background ofdifficulties in building up reserve requirements under the provisions of the newregulation, on the other.

Interbank Money Market and Average Interest Rates in 1998

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000


lei billions; daily averages

0

15

30

45

60

75

90

105

120

135

150percent per annum

deposits interest rate (right-side scale)

130. Interest rates in the interbank money market proved highly sensitive not only tomonetary policy impulses and the development of banking system, but also toinconsistent and unsustainable economic policy.

130.1. Notwithstanding the downward trend in interest rates on interbank market duringFebruary-July in response to decelerating inflation, the interest rates reached high realpositive levels, excepting February, when they fell back to real negative levels amid highinflation rate.

130.2. Paradoxically, lowering of discount and lombard rates with a view to consolidatingdisinflation expectations was followed by a reversal of the trend in interbank interestrates brought about by reinvigoration of inflationary expectations since August 1998.Around the turn of the year, the interbank interest rates posted a dramatic rise, the


65

incorporated risk premium inducing average real positive levels of over 80 percent; dailynominal interest rates on interbank deposits peaked at 244 percent in December.

131. Developments of the interbank market parameters interlocked somewhat with thoseof the primary market for government securities. A quasi-permanent overdemand forgovernment securities on primary market in the first three quarters of the year added toaverage yields on government securities which were usually lower than average interestrates on the newly established interbank deposits, except for May and July. Interest ratesremained unchanged until the end of the year, notwithstanding the decline in demand forgovernment securities in the last part of the year. To fend off this challenging situation, inDecember, the Finance Ministry suspended auctions and resorted to publicsubscription, thereby leading to a temporary decline in interest rates, which laggedbehind market interest rates at that very moment; accordingly, the spread betweenaverage interest rate on interbank transactions and average interest rate on governmentsecurities rose to more than 56 percentage points in December.

132. Secondary market witnessed an increase in the volume of transactions, whichaccounted for 5 percent of GDP compared with 3 percent in 1997. The central bank’soperations accounted for 72.5 percent of total transactions on this market, while non-banks’ operations represented 20.8 percent of total transactions. In countries with a full-fledged secondary market the ratio between issues on the primary market andtransactions on the secondary market is 1 to 10. In Romania, the ratio was barely 1 to 0.4in 1998, hence the need to deepen and develop the secondary market.

133. The interest rates for non-banks appeared more rigid, tending to lag behind theinterbank interest rates; this behaviour reflects the atypical gaps between the cost offunds on the interbank money market, on the one hand, and the cost of funds attractedfrom the economy and yields on placements outside the banking system, on the other. InJuly alone the average interbank money market rate remained within the spread betweendeposit and lending rates for non-banks, pointing to an excessive market segmentation.Under these circumstances, transmission of monetary policy impulses to economy wasrendered difficult or even distorted.

134. Although lower, the average interest rates for non-banks reflected the trend in theinterbank money market rates. The interest rates of financial institutions had generally aone-month lag to the interbank interest rate movements and they posted moderatefluctuations. Consequently, deposit rates and sometimes lending rates declined to realnegative levels in the months with high inflation rates. For the year as a whole, theinterest rates of financial institutions stayed within reasonable levels, thereby upholdingthe real growth in credit to non-government.

135. Despite the mid-year 14.4 percentage point decline in the spread between lending


66

and deposit rates, at end-year it remained high and in January the spread peaked at23.5 percentage points, to hit a four-year high. Apart from showing either present orfuture mounting financial straits of the banks and worsening of their credit portfolios, thisdevelopment reveals banks’ reluctance to lend fresh credits and their preference forlower risk-weighting and interest-bearing placements, such as government securitiesand deposits with the central bank. Moreover, an increase in the spread betweenlending and deposit rates would aggravate net worth difficulties of companies.

D. Foreign exchange policy

136. The most significant event of the year was that Romania has notified the IMF’sBoard of its acceptance of the obligations of Article VIII, Sections 2, 3 and 4 of theArticles of Agreement (on 25 March 1998). This action signifies both the authorities’commitment to eliminate restrictions on current account operations and their resolutenessnot to introduce any restrictions in the future. Announcing the introduction of the fullinternal convertibility of the leu, the authorities showed their relentless determination topush through reform by making extensive use of market-based mechanisms.

137. Apart from this crucial event, foreign exchange policy suffered no significantchanges, showing the following features broadly unchanged from a year earlier:

137.1 The exchange rate is freely determined by supply of and demand for foreignexchange in the forex market; the National Bank of Romania’s intervention was onlyaimed at smoothing out too large fluctuations in the exchange rate of the leu. Themanaged floating regime is consistent with the prevailing economic conditions and withfurther development of the Romanian economy as well.

137.2 In 1998, the National Bank of Romania kept a close watch on short-term capitalinflows and purchase of lei-denominated government securities by non-residents. Thispolicy stance proved to be justified all the more so as countries which took ad-hocliberalisation steps were badly affected. In this regard, large capital flight from Russiaenhanced the already deep-seated imbalances of the economy, unleashing Russia’sfinancial quagmire. Liberalisation of the capital market is the direct effect of a matureeconomy, closely related to the sophistication of mechanisms and instruments at hand ofthe central bank.

138. Apart from being an important step per se, the acceptance of obligations underArticle VIII, Sections 2, 3 and 4 of the IMF’ s Articles of Agreement signified not onlyenhanced confidence in the foreign exchange policy pursued by the National Bank ofRomania but, most of all, the authorities’ determination not to resort to administrativepractices (as they did in the past) and to embrace consistent, cautious policies. Whileconsistent policies translate into stability of the currency and steadfast underpinning ofcapital inflows, inconsistency in tackling the matters brings to the fore negative effects


67

such as fast capital outflows and currency depreciation, which might be attributed tovolatile corporate expectations rather than to worsening of economic fundamentals.

139. The authorities’ decision to adopt unrestricted convertibility of the current accounttransactions came as a follow-up to a lengthy process and against the backdrop of thesynergetic action of the following factors:

139.1. Increase in foreign exchange reserves in 1997 to USD 2,530 million from USD748.5 million at end-1996 as a result of capital inflows in the first semester of 1997. It isworth mentioning that expansion of reserves by purchases on the forex market entailed arise in sterilisation liquidity cost. In retrospect, the decision to consolidate foreignexchange reserves proved its appropriateness in creating favourable conditions forRomania to accept the provisions of Article VIII of the IMF’s Articles of Agreement and inensuring that the central bank has greater room for manoeuvre to calm down tensions inthe aftermath of Russia’s meltdown.

139.2. A smooth functioning of the foreign exchange market as proved by increase intransactions in the wake of liberalisation of foreign exchange market and exchange ratein March 1997.

139.3. Establishment of the exchange rate on the basis of market-based mechanismswhile the central bank’s intervention was aimed at preventing large fluctuations in theexchange rate of the leu. This stance enhanced the credibility of foreign exchange policypursued by the National Bank of Romania.

139.4. Laying the foundation for de jure liberalisation of current account transactions,following the new currency regulation that took effect on 30 December 1997.

140. Although the decision to introduce full convertibility of the current accounttransactions was initially regarded with scepticism, the attendant effects were lessharmful than expected, even under the unfavourable environment caused by the Russiancrisis. At the outset of 1998, foreign exchange market was still grappling with strains thatemerged in the fourth quarter of 1997, so that faster depreciation of the leu in earlyJanuary may not be fully ascribed to unrestricted access of natural persons to foreignexchange. On the contrary, the decision to adopt full convertibility of the current accounttransactions was viewed as having positive effects since the Romanian financial marketfaced further capital inflows, the unfavourable economic environment notwithstanding.Consequently, alleviation of tensions on the foreign exchange market in the months thatfollowed allowed the exchange rate to fluctuate within narrow margins, while the centralbank intervened only marginally on the foreign exchange market.

141. The conduct of foreign exchange policy was predicated on a degree ofsynchronisation and synergy with monetary policy, allowing for the constraints inducedby the development of Romanian economy. Against this backdrop, foreign exchangepolicy in 1998 showed two distinct phases:


68

0

20

40

60

80

100

120

140

160


consumer prices

industrial producer price

average nominal exchange rate

change as against a year ago

0

5

10

15

20

25

30

35

40

45


change as against December 1997

Exchange Rate and Inflation in 1998

141.1. By mid-August 1998, the National Bank of Romania kept the leu depreciationunder control in an effort to support the disinflation process; accordingly, monthlydepreciation of the leu ranged between 1.5-2 percent, entailing a real appreciation of theleu by 13.8 percent, based on monthly averages. This stance was supported andpartially imposed by capital inflows, the sterilisation of which would have increased thealready high costs of anti-inflationary monetary policy.

141.2. After the outbreak of the Russian crisis in late August, there was a shift in theforeign exchange policy stance of the National Bank of Romania since the leudepreciated sharply due to the impact of reversal in capital flows. The rationale fordepreciation was the maintenance of an overvalued currency as a result of capitalinflows in 1997 and in the first part of 1998. To avoid unfavourable phenomena, such asa loss of confidence in the domestic currency, resurgence of inflation, emergency ofdisruptions that might have had unpredictable consequences on relative pricesdevelopment and the threat of an external financial crisis that might have developed intoa domestic foreign exchange one, the National Bank of Romania adopted a gradualapproach in bringing the exchange rate to the equilibrium level. This approach entailed,however, inevitably high costs, such as the increase in market interest rates and activeintervention by the National Bank of Romania in the foreign exchange market with theattendant drop in reserves.

142. For the whole year, the leu appreciated in real terms by 4.3 percent based on CPI(monthly averages). The appreciation of the leu is desirable by itself since it entailsvaluation gains for domestic output when expressed in foreign exchange terms, thereby


69

reflecting better performance, and may act as an incentive to output by making importprices cheaper. There are two preconditions that would ensure achievement of thisobjective: in order to avoid erosion of external competitiveness, appreciation of the leushould be accompanied by steady increase in labour productivity and higher quality ofRomanian products destined to exports. In 1998, the Romanian economy ran off track asneither of the two preconditions was met. Labour productivity declined and supply forexports remained structurally unchanged, with low-value added products, less capableto cope with fierce competition on international markets. This contradictory evolution ledto the depreciation of the exchange rate of the leu on foreign exchange market, whileexternal factors supported the leu in the first part of the year, under the favourableinfluence of Romania’s acceptance of the obligations of Article VIII of the IMF’s Articlesof Agreement.

143. From another angle, this issue shows that the option for a foreign exchange policyfocusing on a faster depreciation of the leu would have been productive, containingaccess to cheap imports resulted from the plunge in world prices, but it would not havesolved by itself the underlying imbalances of real economy such as the absence ofstructural reforms and decline in labour productivity. The experience of the previousyears reinforced evidence that currency depreciation did not entail a significant changein the ratio between prices of tradables and those of non-tradables. The prices of the twocategories of goods rose simultaneously due either to expensive imports for sectorsrelying on imported raw materials or to increment in other cost elements; moreover, thereis no room for doubt that inflation expectations and increase in incomes affected theprices of the two categories of goods.

144. Evolution of international trade flows left its mark on Romania’s foreign trade whichin turn was affected by protracted crisis of the Southeast Asian countries and by wavesof instability in Russia’s financial market, although these partners account for a small partof Romania’s trade relations. The incipient effects made themselves felt on the forexmarket (the National Bank of Romania’s intervention in late August and early Septemberwas aimed at accommodating the spiralling demand for foreign exchange and,implicitly, at avoiding an abrupt depreciation of the leu) and on capital market (the BETindex experienced a substantial decline, reflecting a reversal of capital flows), resultingin the country’s downgrading by rating agencies.

E. Forex market

145. Forex market was further transparent during 1998 and the volume of transactions hitthe highest level since its creation in 1994. The favourable external factors, additionallyspurred by Romania’s compliance with provisions under Article VIII of the IMF’s Articles


70

of Agreement, allowed the central bank to replenish its foreign exchange reserves (theNational Bank of Romania made net forex purchases to the tune of USD 94.2 million inthe second quarter alone).

146. Developments in the forex market cannot be dissociated from the overallmacroeconomic environment as several factors had a major impact on the key actors inthe market: the real sector performance, developments of both money demand andmoney supply, the interest rate differential and, last but not least, inflation expectationsinduced by psychological factors.

146.1. Unlike a year ago, seasonal influences generated by importers’ behaviour, whichtook advantage of both falling prices on world markets and further subdued domesticsupply, were manifest mostly towards year-end. Grappling not only with the ever-deteriorating current account, but also with a widening foreign exchange shortfall, theNational Bank of Romania resorted to direct interventions in the forex market totemporary accommodate the overdemand. Customers’ demand took off in August andSeptember in particular amid the financial meltdown in Russia and led to capital outflowshigher than the inflows to the forex market.

146.2. However, developments in the interbank forex market showed dissimilarities whencompared with those recorded in previous years. Foreign exchange flows, which areconditional on money market, exhibited various levels across banks, thereby promptingspeculative behaviour of some banks holding large amounts of foreign currency. Inprevious years, non-banks’ transactions accounted for a major proportion of total forexoperations but, since 1998, interbank transactions have been competing with the non-banks’ transactions (in the beginning, with equal volumes of up to USD 550 million permonth to reach, as of August 1998, more than USD 1 billion per month on the side ofbanks). The interbank forex market became increasingly transparent, robust and steady,on the back of higher amount of transactions, though the key negative effect was a morespeculative behaviour of banks, which made the intervention of the central bank evenmore costly.

147. Forex market imbalance coupled with renewed seasonally-induced demand byimporters materialised in a highly volatile exchange rate: the leu fluctuated withinnominal monthly averages ranging from +0.7 percent (spelling an average monthlyappreciation in February) to -6.3 percent, i.e. the average monthly depreciation recordedin December. The moderate swings of the domestic currency during January-October(with monthly averages between 1 and 2 percent) were yet another proof for thesuccessful monetary policy approach.


71

Interbank Foreign Exchange Market in 1998

-100

-50

0

50

100

150

200

250

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

USD millions

daily volume (total)

NBR's purchases, net

interbank operations

148. Forex market smooth-working was highlighted by the phasing out of segmentationtendencies: exchange rates displayed by exchange offices (of banks as well asprivately-owned ones) witnessed only minor variations, exceeding by no more than 1.5percent the exchange rate announced by the National Bank of Romania, while the blackmarket was simply stifled owing to the effective removal of restrictions on individuals’access to foreign exchange.

F. Capital market

149. The capital market suffered the strong impact of the crisis that hit the real sector in1998. Behind the steady fall in stock market indices stood several other domesticfactors, such as the snail’s-pace reform, political uncertainties, the ever-changinglegislative framework and lack of serious concern about clarifying the laws that have adirect influence on the capital market. To all this, the financial meltdown on the emergingmarkets starting with the ones in Asia, on to Russia and with another threat of a crisis inLatin America towards the end of the year also contributed. The above-mentionedfactors acted jointly and led to downgrades in the country rating, which additionallyprevented investors from moving into shares. Therefore, foreign investment funds (whichspelt the engine of growth in 1997) reduced their capital inflows to the market andforeign investors shifted to seller positions once the crisis in Russia broke out, drivingshare prices sharply lower, notably those issued by large enterprises.

150. The sharp fall in share prices brought about lower capitalisation of both the


72

Bucharest Stock Exchange (BSE) and the RASDAQ; market capitalisation plunged to 3.7percent share-to-GDP at end-1998 from 6.4 percent at end-1997. Throughout the year,trading on both markets was marked by domestic investor interest in acquiringcontrolling stakes in companies involved in trade, tourism, and services, on the onehand, and consolidation of positions held by foreign investors in some local companies(in particular those in the cement sector), on the other.

151. On the Bucharest Stock Exchange, the number of listed companies surged by 70percent to 126 at end-1998 compared with 75 a year earlier.

151.1. The number of traded shares, turnover and market capitalisation posted mixeddevelopments, peaking in the last two months of the first quarter of 1998 and touchingbottom at the end of the third quarter and the beginning of the fourth. The number oftraded shares went up 4 percent, turnover fell 46 percent, while market capitalisationcontracted 22 percent. Out of total traded shares, roughly 10 percent were public offersorganised by the SOF, accounting for 12 percent of transactions in 1998. The listing ofconsumer goods manufacturers, accounting for about one-quarter of the companieslisted on the bourse and about 18 percent of market capitalisation, was viewed as amajor step forwards on the road to a full-fledged capital market.

151.2. Prices of the ten most active shares on the BSE tumbled more than one-half, i.e.50.2 percent, as reflected by the drop to 377.7 points of the BET index as of 31December 1998 versus 757.9 points at 31 December 1997. Developments of the BET-C,the composite index of the Romanian bourse, are yet another proof for the overall fall inshare prices. The BET-C index became operational as of 16 April 1998 to provide acomplete picture of developments displayed by share prices and hit a record high of1,056.5 at end-April to close at 488.6 points.

151.3. The downtrend was also reflected by the lowering price/earnings ratio, from 10.7in 1997 to 8.2 in 1998, which was widely attributed to foreign investors shifting to netseller positions.

Sector

Oil extraction and processing 6 4.8 5Materials and raw materials 14 11.1 21Chemicals 11 8.7 13Pharmaceuticals 4 3.2 12Machinery and equipment 47 37.3 15Consumer goods 31 24.6 18Services 9 7.1 8Banks and financial services 4 3.2 8TOTAL 126 100.0 100

companies capitalisation

Table 6. Structure of companies listed on the BSE by sector as of 31 December 1998

% MarketNumber of listed


73

Bucharest Stock Exchange in 1998

0

50

100

150

200

250

300

350

400


lei billions

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000lei billions

turnover

market capitalisation (right-side scale)

152. The RASDAQ also took a blow, posting less sharp falls in share prices as comparedwith the BSE. The authorities made increased resort to the OTC market for the fastprivatisation of several state-run companies all through the year under review.

RASDAQ Market in 1998

0

100

200

300

400

500

600

700

800

900


lei billions

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000lei billions

turnover

market capitalisation (right-side scale)

152.1. The number of listed companies rose 7.1 percent year on year (from 5,134 to


74

5,496) while market capitalisation shed 28.2 percent sequel to the downturn in shareprices. It is noteworthy that the number of shares traded on a daily basis accounts for amere 11 percent of the total.

152.2. The number of traded shares increased by 4.12 times. Commencing with Augustthe market saw a flush of cross trades ordered by the persons that were laid off andwere granted redundancy payments that had to be turned into shares pursuant toOrdinances nos. 9/1997 and 22/1997.

152.3. The RASDAQ Composite Index, effective since end-July, ended at 716.2 points,spelling a 28.4 percent dive in share prices in only five months.

153. In 1998 too, the capital market failed to provide funding to boost the businessactivity and functioned largely as a marketplace for trading the shares issued under theMass Privatisation Programme, while the only announcements to arouse investor interestwere those about privatisation, take-overs, or profit sharing. These outcomes werecaused by managers’ reluctance to resort to such a financing method given the positionof the SOF as the majority shareholder, on the one hand, and the still flawed and ever-changing legislative framework, on the other.

Chapter V. Licensing, regulation and prudential supervision of banks

75


154. The activity of licensing, regulation and prudential supervision of banks focuses onachieving a stable, viable banking system by setting several prudential norms andindicators and monitoring their observance to the letter as well as by forcing unviablebanks out of the system. Prudential supervision of banks should therefore preventsystemic risk and, at the same time, give consideration to the autonomy of each bank inorganising and carrying out activities in a competition-based environment.

155. The major issues that engaged the attention of banks are aimed at both increasingefficiency of the banking system and restructuring and dealing with the non-performingloan portfolio. To this effect, the National Bank of Romania took a strategic approach to theproblems confronting the banking system that resulted as yet in reinforcement of thesystem following implementation of a cautious policy of licensing new banks, assistance totwo state-owned banks, namely Banca Românã pentru Dezvoltare and Banc Post, with aview to their privatisation, participation in restructuring of two other banks, i.e. BancaAgricolã and Bancorex, imposition of tough supervisory measures or revocation of bankinglicences for some insolvent banks, as it was the case of Dacia Felix and Credit Bank.

Type of capital

State owned 1 9.55 5.43 13.05 4.38Majority state-owned and domesticprivate capital 6 68.70 76.11 63.22 55.36Domestic private capital 4 3.29 3.85 3.96 4.84Domestic and foreign private capital 6 6.10 5.92 5.79 7.02Majority (domestic and foreign) private andstate-owned capital 1 1.74 2.14 2.22 1.59Majority domestic private andstate-owned capital 1 0.21 0.18 0.16 1.00Majority (foreign and domestic) private andstate-owned capital 1 0.69 0.82 0.85 1.46State-owned and foreign private capital 1 2.13 0.62 2.40 6.88Domestic and foreign private capital 5 2.64 1.65 2.97 5.41Foreign private capital 8 4.94 3.29 5.38 12.07

34 100.00 100.00 100.00 100.00*) Except Dacia Felix and Credit Bank

As a share ofNumberof banks* Balance

capital

Table 7. The banking system as of end-December 1998

Paid-upsheet

Totalcredits

Totaldeposits

156. Over the past few years, the Romanian banking system has developed at a swiftpace, the number of banks rising from eight banks at the time Law No. 33/1991 wasenacted to thirty-six banks, Romanian legal entities (the Savings Bank, Dacia Felix andCredit Bank included) and nine branches of foreign banks as at end-1998. Out of thetotal number of banks, six are majority state-owned banks, i.e. Banca ComercialãRomânã, Bancorex, Banca Românã pentru Dezvoltare, Banc Post, Banca Agricolã andEximbank, while twenty-nine have majority foreign private and/or Romanian capital. TheSavings Bank (CEC) is also included among banks but it is a one-off entity within theRomanian banking system since it is the sole completely state-owned bank to begoverned by its own law.


76

Table 8. Banks in Romania as of 31 December 1998- bill. lei-

Paid upBank

31 Dec. 1998Romanian legal entitiesBanca Comercialã Românã S.A.* 26,415,885 840,565Banca Românã de Comerþ Exterior (Bancorex)* S.A. 27,600,732 1,245,234Banca Agricolã S.A.* 10,548,960 98,313Banca Românã pentru Dezvoltare S.A.* 11,143,618 405,510Banca pentru Mica Industrie ºi Libera Iniþiativã - MINDBANK S.A.* 505,236 50,000Banca Generalã de Credit ºi Promovare - Bankcoop S.A.* 3,519,757 143,848Banca Comercialã "Ion Þiriac" S.A.* 5,120,272 102,412Banc Post S.A. 4,468,095 106,558Banca de Export-Import a României (EXIMBANK) S.A. 2,378,012 83,686Banca Româneascã S.A. 473,937 50,000Banca de Credit Industrial ºi Comercial S.A. 906,972 73,278Banca Transilvania S.A. 872,526 50,000Banca Turco-Românã S.A. 2,890,310 345,600Banca de Credit ºi Dezvoltare ROMEXTERRA S.A. 281,679 50,000Banca Bucureºti S.A. 1,195,909 119,430Banca Internaþionalã a Religiilor S.A. 2,320,912 80,000Banca Columna S.A.1) 608,436 34,860Banca de Credit Pater S.A. 266,276 50,000ABN AMRO BANK (Romania) S.A. 2,331,121 55,680Banca Comercialã "Robank" S.A. 1,173,159 50,002Banca Comercialã "Albina" S.A. 537,703 50,000Citibank Romania S.A. 1,884,386 122,900Banca Comercialã West Bank S.A. 345,954 50,000International Commercial Black Sea Bank (Romania) S.A. 168,225 51,560Banca Comercialã ASTRA S.A. 53,531 18,310Banca Comercialã "UNIREA" S.A. 210,719 50,000Banca Românã pentru Relansare Economicã LIBRA BANK S.A. 156,613 30,975Banca Daewoo (Romania) S.A. 518,018 75,000Raiffeisenbank (Romania) S.A. 470,911 40,000DEMIRBANK (Romania) S.A. 858,146 61,600Bank-Austria Creditanstalt (Romania) S.A. 327,374 78,200ROMANIAN INTERNATIONAL BANK S.A. 170,683 54,847BNP – Dresdner Bank (Romania) S.A. 121,084 83,510Casa de Economii ºi Consemnaþiuni (CEC) 12,092,386 220,000Banca DACIA FELIX S.A.*2) … …Banca Renaºterea Creditului Românesc CREDIT BANK S.A.3) … …Total Romanian banks 122,937,537 5,021,878Foreign legal entities (branches)Banque Franco-Roumaine* 567,550 50,000Société Générale* 1,281,989 50,100Frankfurt – Bukarest Bank A.G.* 327,884 50,000MISR Romanian Bank* 495,980 50,000ING Bank N.V. 3,537,767 259,107National Bank of Greece 174,743 50,852Banca Italo-Romena SpA 326,688 50,000Chase Manhattan Bank 442,081 50,000United Garanti Bank International N.V. Amsterdam 426,392 50,000Total foreign legal entities 7,581,074 660,059TOTAL 130,518,611 5,681,937* Banks licensed to operate before enforcement of the NBR Act in 1991; ** Gross assets, less provisions and depreciation;*** In the case of foreign bank branches having legal personality, data show capital endowment;1) Judiciary reorganisation proceedings were initiated pursuant to Law No. 64/1995; 2) Under judiciary reorganisation proceedings pursuant to Law No. 64/1995; 3) Licence revoked by NBR. The bank disputed licence revocation.

as atcapital***

Net assets** as at 31 Dec. 1998


77

- % -1991 1992 1993 1994 1995 1996 1997 1998

Share in total assets 83 76 76 69 64 66 61 62Share in total credits 94 93 87 82 76 76 63 71Share in total deposits 68 60 61 61 56 62 61 59Share in total own funds 85 73 70 63 62 71 72 49

* Four leading banks (Bancorex, BCR, BRD, BA)

Table 9. Leading banks' portfolios*, 1991 - 1998

157. Concentration and segmentation further marked the Romanian banking system in1998. Although the number of banks increased sevenfold during 1991-98, the domesticbanking market was still dominated in December 1998 by the four leading majority state-owned banks, i.e. Bancorex, Banca Românã pentru Dezvoltare, Banca ComercialãRomânã, and Banca Agricolã, as well as the Savings Bank. The four above-mentionedbanks held 62 percent of total bank assets while the Savings Bank held 9.8 percent oftotal, being the third-largest bank in the market. The leading position of the five banksmentioned above is also ascribable to the fact that they held 56 percent of paid-upcapital and 72.3 percent of deposits as at end-December 1998.

158. By law, the National Bank of Romania agrees to establishment of branches andsubsidiaries of prime banks that play a paramount role in broadening the range ofbanking services and in improving their quality. The individual market shares held bybranches of foreign banks range from 2.71 percent (ING Bank) to 0.13 percent (NationalBank of Greece). Moreover, the brisk expansion in foreign banks’ market share bringsabout stronger competition and spurred local banks to enhance efficiency. Banks withmajority Romanian and foreign private capital hold a 21.7 percent market share and areoriented basically towards financing of private companies.

159. Segmentation of the banking market continues to be rather glaring. Albeit highlyspecialised due to their previous sector-oriented business, the monopoly position of theleading state-run banks eroded as a result of efforts made for portfolio diversification.Majority state-owned banks were engaged mostly in financing of the public sector, whileprivate banks with Romanian capital focused on lending to private companies. Foreignbanks were particularly involved in financing of major foreign companies doing businessin Romania. In this respect, the rife share held by the private sector in total credit to non-government starting with the last quarter of 1997 is viewed as a change for the better.

160. In recent years, the ongoing distortions in the real sector coupled with the swings ininterest rates, in the exchange rate of the leu and in consumer prices left their mark onthe financial performance and prudential indicators of banks since uncollected revenuesfrom interests and exchange rate influences increased as a share in total gross profit.


78

160.1. Solvency ratio of the Romanian banks slipped from 13.6 percent to 12.5 percentin 1998, but remained above the lower limit of 12 percent required by the internationalinstitutions for countries in transition. Most of the banks achieved a capital adequacyratio above the 8 percent floor stipulated by the norms issued by the National Bank ofRomania. It might be asserted that the solvency ratio regulation spurred banks toimprove their financial position by increasing the number of low risk-weighted assets bypurchasing government securities in particular. Starting in the latter half of 1999, NormsNo. 8/1999 on raising the capital adequacy ratio to 12 percent will come into effect.

160.2. Liquidity ratio eased to 94.8 percent in 1998 versus 101.1 percent a year earlier.The indicators for measuring profitability failed to provide a brighter picture as well.Thus, return on equity and return on assets slid year on year from 75.1 percent to 30.7percent and from 8.2 percent to 3.8 percent, respectively.

- % -

Liquidity ratio (capital adequacy) 13.3 13.6 12.5(Equity capital funds / Risk-weighted assets)Asset liquidity ratio 10.9 10.9 12.3(Shareholders' equity / Total assets)Overdue credits rate 10.8 23.2 22.8(Overdue credits / Total credits)Coverage of credit risk 59.6 73.1 72.1(Set-up risk provisions / Required risk provisions)Credit risk 43.7 52.6 54.8(Credits + interests under "Loss" and “Doubtful”/Total credits + accrued interest)Uncollected income 22.3 15.0 19.3(Interest, fee and commission income / Total income)Return on equity 48.8 75.1 30.7(Gross profit / Average level of shareholders' equity)Return on assets 5.6 8.2 3.8(Gross profit / Average level of assets)Current liquidity 98.1 101.1 94.8(Current assets / Current liabilities)* Except for the Savings Bank** Excluding Dacia Felix, Credit Bank and branches of foreign banks

Table 10. Key financial indicators of the banking system

31.12.1996* 31.12.1998**31.12.1997

161. The overall performance of the banking system was hurt by the overall economicconditions overburdened by major disruptions at both micro- and macroeconomic level.Structural dysfunction in the real sector had a dampening impact on the banks’ loanportfolios, most notably on the banks revealing high sectoral exposure. In this criticalsituation were Banca Agricolã and Bancorex that, in previous years, had extendedseveral credits to enterprises in the energy and farming sector regardless of theeconomic and financial position of the borrowers. Because of the wobbly economy,which played a large part in the steadfast worsening of loan portfolios, most banks have


79

become even more specific in classifying credits under ‘doubtful’ and ‘loss’; provisionsset up for such credits rose to 97 percent of total provisions at end-December 1998.

162. The above-mentioned developments brought about inter alia a high level of non-performing credits in the Romanian banking system, i.e. more than 54 percent of the totalat end-December 1998. Customer credits classified under ‘doubtful’ and ‘loss’ consistentwith bank prudential regulations in force, not including collateral and securities to covercredit risk, shifted to non-performing credits. Considering the amount of such collateraland securities, the share of non-collateralised bad loans and related interest went to 28.4percent of total loan portfolio at end-December 1998.

163. Banks sought to back with risk provisions the non-performing credits granted in1998 and to classify more rigorously credits granted in previous years through anappropriate provisioning so that the risk provision growth rate, i.e. 169.5 percent,outpaced the growth rate of credits granted, i.e. 153 percent. Therefore, risk provisions,including accrued but not yet received interest, reached 20.2 percent of total credits atend-1998 compared with 18.2 percent and 9.3 percent in 1997 and 1996, respectively.

164. The Romanian prudential regulatory framework stipulates establishment of riskcredit provisions only – coverage of other types of risk is still insufficiently regulated. Asof end-December 1998, banks’ risk provisions figured lei 12,391.6 billion against the lei17,183 billion provisioning requirements. In other words, the provisioning shortfallwidened slightly to 27.9 percent at end-1998 versus 26.9 percent a year earlier, beingexhibited mainly by problem banks.

165. In accordance with the financial statement as of 31 December 1998, profit tax worthlei 2,037 billion was paid by banks to the government budget, out of which lei 1,792.9billion were accounted for by the banks, Romanian legal entities, while foreign banks’branches paid lei 244.1 billion. After taking into account the collected revenues and thepaid-for expenditures, actual profit of the thirty-four banks Romanian, legal entities,amounted to lei 1,754.4 billion as against gross profits of lei 2,297.1 billion recorded intheir balance sheets. It should be pointed out that, in 1998, the larger share of incomesfrom collectable interest in total incomes as well as the amended methodology formeasuring taxable profit – without being adjusted to inflation rate – squeezed banks’liquidity and contributed to their real decapitalisation.

A. Licensing and regulation of banks

166. The National Bank of Romania further conducted a prudent policy of licensing newbanks throughout 1998. Special emphasis was laid on enhancing quality of licensing bygranting banking licence to a relatively small number of banks eligible to meet therequirements related to management and financial strength, thus coping with the


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activities and competition specific to the banking market. In the year under review, threebanks, Romanian legal entities with foreign capital, and a branch of a foreign bank weregiven the green light to start operations.

167. Ever since 1993 the National Bank of Romania has deterred equity interest of state-controlled commercial companies and régies autonomes in banks and even imposedrestrictions in this respect in 1995. Consequently, such entities may become share-holders in banks provided the following conditions are observed: (i) the former shall nothave been government-backed for the last three years; (ii) individual equity investmentsin the bank may not exceed 2 percent; and (iii) aggregate equity investments by theseentities may not be in excess of 10 percent of the bank’s registered capital. Adoption ofthe above-mentioned regulations was aimed at putting a halt on ‘tied loans’ (one of themajor reasons why the financial positions of Dacia Felix Bank, Credit Bank and ColumnaBank worsened) and strengthening bank management.

B. Opening-up of the Romanian banking sector

168. In recent years, the central bank has gradually brought licensing of banks in linewith the EU standards. One may describe the National Bank of Romania’s licensingprocedure as liberal but not loose at all. The aim is to stave off access of any weak bankto the Romanian banking system but at the same time keep up competition.

169. Reform in the banking system aims at strengthening efficiency, with prudentialregulations acting as an incentive on competition among banks. Higher efficiency alsoinvolves reduction of the spread between lending and deposit rates applied by banks; in1998, interest rate differential ranged between 6 and 15 percentage points comparedwith 2 to 3 percentage points in the developed countries. The banking regulatoryframework should not aim to narrow the intermediation margin by affecting in any waybanks’ profitability for it might bring on counterproductive effects. Therefore, curtailmentin fixed costs relating to bank intermediation can only prove effective based on aregulatory framework that supports and boosts competition. To this end, the central bankhas acted in its capacity of regulatory authority and has been stimulating universal banks(aside from spreading risk, such a system might downsize costs and improve efficiencyof the financial mechanism) as well as the opening up of the banking sector.

170. Opening-up of the Romanian banking sector to foreign banks. Foreign banks havehad full access to the banking market ever since the start of the reform process inRomania upon fulfilment of licensing requirements. By law, foreign banks may operate inRomania according to one of the following procedures: (i) establishment of subsidiarieshaving Romanian legal personality; (ii) establishment of branches; (iii) establishment of aconsortium bank with local and foreign banks; (iv) take-over of a bank with Romanian


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capital. Thus far, foreign banks have gained access to the Romanian market by usingalmost exclusively the first three procedures but, commencing with the first quarter of1999, with the recently started bank privatisation process in view, the fourth procedurewill have also been resorted to (e.g. Banca Românã pentru Dezvoltare and Banc Post).

171. Prudential supervision regulations are meant to secure stability of the financial andbanking sector in Romania by virtue of creating an adequately capitalised bankingsystem, a high quality of both shareholding and management, able to cover bank-relatedrisks. To this end, bank prudential regulations were elaborated in light of harmonisationwith international standards based on bank supervision principles set by the BasleCommittee and the European Union in order to address the economic and financialissues of our country.

172. In fact, the National Bank of Romania completed the prudential regulatoryframework back in 1995. During 1998, the existing regulations were subjected toamendment so as to comply with the internationally-recognised rules and deal withpractical issues. Enactment of Law No. 58/1998 – The Banking Act – and Law No.101/1998 – The National Bank of Romania Act – helped to enlarge and improve the legalframework governing the licensing, regulation, and prudential supervision of banks.Specifically, compared to Law No. 33/1991 on banking business, Law No. 58/1998introduces several novelties, such as:

� clear-cut definition of activities that may be performed by banks (Art. 8);� banks shall make full cash payments to share capital upon registration (Art. 11);� establishment of capital endowment for foreign bank branches operating in Romania

(Art. 40);� some regulations, besides amendments to the existing ones, regarding mergers and

divestitures (Art. 19), the liquidity floor (Art. 45), and banks’ investment and resourcemanagement;

� possible imposition of supervision measures or special administration on ailing banks(Chapter XIII);

� an independent auditor for each bank (Art. 61).

173. The National Bank of Romania developed and subsequently enforced tworegulations regarding prudential supervision: Norms No. 4/1998 on minimum capitalrequirement for banks and Norms No. 6/1998 on the notification about opening representativeoffices by foreign banks in Romania. Moreover, several drafts were also mapped out orconcluded throughout 1998 and were passed in the first quarter of 1999, as follows:

173.1. Norms No. 1/1999 on the computer-assisted Register of banks – data input andupdating shall be carried out by the Licensing, Regulation and Prudential Supervision ofBanks General Department.


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173.2. Norms No. 2/1999 concerning bank licensing subsequently amended by NormsNo. 6/1999 laying down the obligation of shareholders to pay up the subscribed sharecapital in cash upon incorporation; limits on equity capital for both open-end andventure-capital funds, or for any other securities companies incorporated as civilsocieties without legal personality, as well as equity capital for régies autonomes orstate-controlled commercial companies in which the state holds at least 10 percent;criteria for scoring professional expertise of bank managers and auditors in compliancewith the terms laid down by Law No. 58/1998; alteration and supplementation ofdocuments attached to the licensing application; the capital endowment for branches offoreign banks shall be equal to the minimum capital requirement; and the existence of anindependent auditor.

173.3. Norms No. 3/1999, specifying the terms under which changes in respect of name,registered address, field of concern, amount of registered capital, significantshareholders, the independent auditor, the bank’s network, etc., may occur.

174. Another package of regulations addresses bookkeeping and drawing-up thebalance sheet in view of legislative acts passed during 1998 (Law No. 58/1998 – TheBanking Act, Law No. 101/1998 – The National Bank of Romania Act a.o.) as well as theneed to harmonise with the EU accounting standards and practices. The activityproduced the following outcomes:

174.1. Specifications issued by the National Bank of Romania on some accountingoperations and measures to be taken by banks to close the 1997 financial year;

174.2. Finalisation of account forms included in banks’ statements on financial position,as well as of methodological norms on their elaboration and use to be enforcedcommencing with the first half of 1998;

174.3. Norms No. 7/1998 on banks’ financial accounting of interest on executorycontracts as well as intangible and tangible assets subsequent to execution for debt.

175. Beginning January 1998, the new chart of accounts for banks rendering greaterconfidence, consistency, and compatibility to banks’ financial statements helped totackle supervision issues.

176. These regulations will be subject to further improvement in order to bring them moreinto line with EU requirements and deal with the specific problems of the Romanianbanking system. With this in view, the National Bank of Romania aims to: carve outseveral regulations enabling control over market risk; issue norms (suggestions) onbanks’ internal audit; enforce liquidity norms for banks; adopt accounting regulations forthe consolidation of balance sheet and accounts as well as for the new activities to beperformed by banks, i.e. trading in derivatives, portfolio management, etc.; keep track


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record of expenditures for risk provisions in the accounting year they were incurred;make the classification of interbank loans and their adequate provisioning.

C. Prudential supervision

177. Prudential supervision of the banking business, which covers both the Romanianlegal entities and branches of foreign banks, is carried out by the National Bank ofRomania based on prudential supervision reports submitted by banks to the centralbank (off-site supervision) and on-site examinations.

178. Off-site supervision has focused, consistent with international prudential rules, onthe following:

178.1. Timely submission by banks of the key prudential indicators such as solvencyratio, total large exposure to all customers, daily forex exposure, loan classification andrisk provisioning.

178.2. Assessment of viability and financial performance of each bank, analysis ofdevelopments and current trends in the banking system.

178.3. The cases when prudential indicators veer off from the level stipulated byprudential regulations. Such cases should be tackled as soon as possible in order toward off deterioration of banks’ financial standings, and penalties should be imposed, bylaw, for repeatedly having bent the said norms.

179. With a view to ensuring smooth exchange of information between banks and thecentral bank, the National Bank of Romania initiated the statistical reporting project thatrequires banks to submit reports via the interbank telecommunication network beside thepaper-backed reports. Such a system offers several benefits to both provider andreceiver of information such as efficiency (by shortening the real time needed for datatransmission and processing), enhanced security (by identifying all data users),standardisation of statistical reports, etc.

180. As a follow-up to the off-site supervision actions, bank managers were sent writtennotifications on taking prompt measures to observe banking prudential norms, while thebanks that had repeatedly infringed the above-mentioned norms were punishedpursuant to the law. The findings of these analyses helped to select the banks that willbe subject to on-site examinations conducted by the NBR‘s supervisory bodies.

181. On-site examinations. The National Bank of Romania stepped up its supervisionactions at the banks’ head offices in 1998. In conformity with the programmes approvedby the NBR’s Board of Directors, on-site examinations were conducted at the followingthirteen banks: Banca Comercialã “Ion Þiriac”, Banca Columna, Banca Româneascã,Banca de Credit Pater, Banca Daewoo (Romania), Banca Comercialã “Unirea”,


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International Commercial Black Sea Bank, Banc Post, Demirbank (Romania), BancaTransilvania, Banca Comercialã “Robank”, Banca Comercialã Românã, and Bankcoop.

182. On-site examinations addressed the following prudential supervision issues: capitaladequacy dependent on the risk profile; nature, trend and volume of non-performingassets and appropriate allocations for credit losses; accommodation of policies,procedures and practices of lending and investment; risk concentration; trend andvolume of impaired assets; connected lending; level, trend and stability of incomes;sources of income; the amount of operational costs; exposure of incomes to market risk;dealing in securities; effects of the taxation system on incomes; banks’ capability tosecure capital adequacy by ploughing back profits; efficiency of liquidity practices andpolicies; strategies for fund management; IT management systems and financing plans;the managers’ capacity to identify, assess, monitor and control risks incurred by bankoperations; accurate, operative and efficient IT management and risk managementsystems; adequate internal audit systems; opening-up to suggestions made bysupervisory bodies and auditors; observance of regulations and laws in force; the overallperformance of the bank and its risk profile.

183. The findings from banking supervision activities highlighted some of the problemsfaced by the banks, as follows: the recessionary environment that weakened alleconomic sectors and put tremendous pressures on managers; lack of adequatepolicies for management of resources and investments that should be applied to dealwith the crisis; under-capitalisation due chiefly to subdued financial strength of share-holders and declining profitability; improper internal audit from both methodological andstructural perspectives, and which is unable to identify and reveal the existing orpotential risks to the managers. The matters relating to prudential supervision and thecases of violation of both banking laws and prudential regulations issued by the NationalBank of Romania were brought to the fore – the most pressing matters regarded lendingand risk provisioning, connected lending, large exposure to a single customer, foreignexchange exposure, etc.

184. The National Bank of Romania acted consistent with the laws and imposedsanctions on the banks that had repeatedly infringed prudential regulations and/or hadrecorded low prudential and financial indicators. In the wake of on-site examinations,seven banks were penalised by limiting operations or inflicting fines. Bank managerswere sent warning notices to take expedient measures to root out and prevent anydrawbacks whatsoever, as well as to carry out to the letter the prudential regulations andother banking regulations.

185. In 1996, pursuant to Law No. 64/1995, the National Bank of Romania in its capacityas a creditor took legal action against Dacia Felix Bank and Credit Bank, that had


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already stopped payments, with a view to restructuring or going into receivership of thetwo banks. In virtue of the said law, the Cluj County Court gave a ruling on 24 November1998 in favour of resumption of activities at Dacia Felix Bank based on the revisedreorganisation plan drawn up by the latter. Should the reorganisation plan be bent, theCourt may start bankruptcy proceedings. As far as Credit Bank is concerned, theSupreme Court of Justice irrevocably validated, on 22 April 1999, the civil Decision givenpreviously by the National Bank of Romania on revocation of the banking licence.

186. Commencing in 1997, other banks, namely Columna, Bankcoop, and Bancorex,have also been facing financial difficulties that persisted into 1998. Consequently, theNBR’s Board of Directors took corrective measures, as follows: loss of office for foundermembers, administrators, chairmen, vice-chairmen and auditors that were found guilty ofthe bank’s deteriorated financial standing (in the case of Columna), limitation of someoperations (of Bankcoop, Bancorex and Columna), imposition of special supervision (onBankcoop) and special administration measures (for Bancorex in March 1999). Allthrough 1998, the financial embarrassment of Bancorex was an ongoing concern for theNational Bank of Romania that notified the SOF, the majority shareholder of the bank, onwhether it should recapitalise the bank or not, in order to prevent systemic risk.

187. The root causes for the difficulties faced by these banks were the following:improper activities performed in previous years by managers, Board members andauditors, conducting of risky policies to attract an ever-growing volume of resources byoffering high interest rates (most notably on household deposits) and investing themlargely in credits to companies in poor financial and economic conditions, or practisingconnected lending. Therefore, banks could not recover credits and collect interest,entailing the steady deterioration of profitability, liquidity, and solvency ratios. The abovementioned problems were associated, particularly in the year under review, with thedismal performance of the real sector, the main beneficiary of credits extended bymajority domestic capital banks.

188. Several measures for restructuring of the banking system and privatisation of state-owned banks were taken in the past two years. Besides changes in legislation, BancaAgricolã and Bancorex have both witnessed the start of the restructuring programmessupported from public funds, Banca Românã pentru Dezvoltare went private, whileprivatisation of Banc Post is well under way.

189. Restructuring of Banca Agricolã and Bancorex advanced in 1998 pursuant to thelegislative acts addressing specifically these issues. Emergency Ordinance No. 51/1998issued by the Romanian Government has thus put in place the legal framework for therecovery of some non-performing assets of majority state-owned banks with a view tostarting the privatisation process, increasing solvency and speed up the procedures for


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retrieving overdue debts of these banks. To this end, the Bank Asset Recovery Agencywas established – its core business is to take over the majority state-owned banks’assets in the form of non-performing loans and either movables or immovables fromexecutory sales and to turn them to account.

D. Directions for restructuring of the banking system

190. Whenever the banking system goes through a crisis, the central bank has to sortout the following dilemma: should it act as lender-of-last-resort for the beleagueredbanks, or should it confine to maintenance of economic stability by conducting anunbiased, credible and responsible policy.

190.1. Short-range actions to be taken by the central bank consist in bailing out cash-strapped, yet solvent, banks even though liquidity injections are at odds with the primarygoal of monetary policy, i.e. to keep inflation at bay. For this reason, the central bank israther concerned with actions aimed at preventing and exercising efficient supervisionover banks, and act as a lender-of-last-resort in exceptional cases alone.

190.2. Medium-range goal of the central bank is different, as it focuses on restructuringof the banking system, thereby leaving the latter’s credibility untouched – thus, theNational Bank of Romania should act jointly with other public institutions. Restructuring ofa bank may be supported from public and/or private funds provided that it is deemedthat recovery of that bank helps to achieve an overall good performance of the economy.

191. Apart from addressing liquidity problems by the central bank, strengtheningprudential supervision regulations, and the start of restructuring programmes for thedistressed banks, reform and improvement of the banking system should alsoencompass taking bold measures such as licence revocation and initiating bankruptcyproceedings against the banks that have systematically infringed prudential regulationsand have subsequently become insolvent.

Chapter VI. Other activities of the National Bank of Romania

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A. Currency issue

192. Although cashless payments extended during 1998, cash payments still prevail inthe economy, mainly as far as individuals are concerned. Under these conditions, totalcurrency (NBR’s cash reserves included) stepped up 44 percent, reaching lei 18,182billion at end-1998 versus lei 12,614.3 billion at end-1997.

193. Currency in circulation accounted for 12.5 percent of broad money at end-1998, off2.3 percentage points on its level a year earlier. Although cash payments further exceedthe level recorded by the developed countries (6-7 percent), where electronic means ofpayments are extensively resorted to, they are nevertheless below the level recorded byother Central and East-European countries (13.7 percent in Poland and 15.1 percent inHungary).

194. The evolution of individual denominations highlights the bias towards using cash forpayments and the drop in purchasing power of the national currency: the notes with facevalue of lei 100,000 and lei 50,000 held 75 percent of the value of notes in circulation,followed by the lei 10,000 note (20 percent). Small-denomination notes (lei 500 and lei1,000) accounted for only 1.2 percent of the issue, and coins held a rather insignificantshare (0.4 percent).

195. The evolution of currency throughout the year showed once again the interaction ofseasonal factors (Easter and Christmas holidays, summer vacation, laying in provisionsfor winter, opening of the school year) and incidental factors (wage indexation in the firstthree quarters, increase in social security contributions, redundancy payments viaperiodically fed bank current accounts and cheque-books). Unlike the prior year,however, currency posted a more balanced growth rate over the year, the growth ratesfor the two semesters equalling 12 percent.

196. In 1998, the note with face value of lei 100,000 as well as the redesigned lei 1,000and lei 5,000 notes were put into circulation. The new issues were meant to harmonisewith the theme and graphical design launched by the issue of the lei 50,000 note and tointroduce new safety elements. Simultaneously, withdrawal from circulation of lei 1,000and lei 5,000 notes issued in 1991 and 1993, respectively, began and preparations weremade for withdrawal of lei 500 and lei 10,000 notes.

197. In 1998, the NBR further issued numismatic gold and silver coins, with face valuesbetween lei 100 and lei 1,000, dedicated to some historical and sports events: the 150thanniversary of the 1848 Romanian Revolution, commemoration of 125 years from the


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death of Transylvania’s metropolitan bishop Andrei ªaguna, 80 years from the Unificationof Transylvania with Romania on 1 December 1918, the 120th anniversary of Romania’sindependence, the Winter Olympic Games and Football World Cup.

B. The Romanian payments system

I. The national payments system of the NBR

198. Enforcement of the NBR Act (Law No. 101/1998) had a strong impact on thenational payments system – DECONT � NBR. It bars the overdraft facility, therebyforcing the central bank to find other technical solutions to permanently monitor theintraday liquidity of each bank and of the banking system.

198.1. Based on its statutory powers, the NBR took stern measures regarding banks’obligation to guarantee (by government securities or interbank deposits) multilateral andbilateral clearing operations performed in own name and for their clients.

198.2. The removal of overdraft facility concerns all the accountholders in the NBR’srecords, State Treasury included. For a better and easier monitoring of the GeneralAccount of Treasury, the NBR and the Ministry of Finance have concluded an agreementthat specifies the mechanism of settlements via this account and the procedure to coverpayments in case they exceed receipts.

199. These technical changes marked the national payments system – DECONT � NBRthat experienced a large growth, both in terms of quantity and value, of the paymentdocuments settled through the banking system and the State Treasury.

199.1. The number of instruments settled in the course of 1998 by the national paymentssystem – DECONT � NBR via the banking system and the State Treasury outran 12million, with a daily average of 47,000 cheques, bills of exchange, promissory notes andpayment orders. Almost 12 million of these instruments were processed through the netsettlement sub-system, 123,000 through the gross settlement sub-system, and 12,500through the special settlement sub-system.

199.2. In 1998, the annual value of final settlements via NBR – almost lei 2,200 trillion –was six times the GDP, development comparable to that of systems in developedcountries. Thus, it is worth noting that every day about lei 8,000 billion are finally andirrevocably settled by the NBR, of which lei 7,114 billion through the gross settlementsub-system, lei 858 billion via the net settlement sub-system and lei 27 billion by thespecial settlement sub-system.

200. Settlement velocity by type of instrument, standardised according to principles setforth by the European legislation, actually equals, as average, the velocity of the systemsin the West-European countries: about 5 days for settling a cheque and 3.6 days forsettling a payment order.


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201. The final settlement of securities operations through settlement accounts openedwith the NBR for the stock market and the OTC market reached lei 894 billion in 1998,with a daily average between lei 1.2 billion and lei 15.5 billion. Final settlements throughthe settlement account of EU/CEMEA VISA INTERNATIONAL totalled lei 18.3 billion,while settlements via the settlement account of EUROPAY represented lei 8.8 billion.These values are definitely not substantial, as electronic payment systems are in theirinfancy in Romania.

202. By using the special final settlement sub-system, the NBR carried on into 1998interbank settlements of some banks under surveillance.

203. According to the regulations in force, the NBR’s Board of Directors decided to putunder special settlement regime, by monitoring its payments, another current account ofCredit Bank opened with the Banking Operation Settlement Department as of 11 August1998. A similar situation had already been experienced by Dacia Felix Bank (26September 1996) and Columna Bank (7 August 1997).

204. Irrevocable final settlements regarding deposit-taking, repayment and payment ofinterest on interbank deposits in the money market kept increasing, reaching lei 450trillion, 1.5 times the level of the prior year.

205. As agent charged with the payment of government securities on the primary market,the NBR performed banking settlements worth lei 78 trillion through the end-of-day grosssettlement sub-system.

206. Pursuant to changes experienced by the banking system, the NBR opened fournew accounts for bank head offices and closed, upon request, the current accounts ofthe Anglo-Romanian Bank and the Constanþa branch of MISR Romanian Bank.

207. In 1998, the central bank approved the rise in the number of banks taking part inthe settlement of securities operations performed by the Clearing, Settlement andDepository National Company for Securities and the Bucharest Stock Exchange. Thus,besides the 15 banks operating on the capital markets, the NBR licensed, upon request,6 other banks for the RASDAQ market and 7 banks for the BSE. These banks haddecided to include transactions and settlement of securities operations into their mainbusiness.

II. NBR Banking Information System – GRAI

208. A system providing banking information on the risk potential of cashless paymentswas imperative for the management of reliable and pertinent information provided withina regulated framework. This would strengthen the safety of banking operations as well as


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the confidence of both individuals and companies in the correctness and performancesof the banking system.

208.1. The NBR’s banking information system provides information for both banks andtheir clients in compliance with Art. 25 of the NBR Act (Law No. 101/1998) and alsoprovides the central bank with data on payments and lending.208.1.1. The Payment Incidents Bureau is an IT system for management of specific datatransmitted by reporting institutions (banks and NBR branches) regarding debit paymentinstruments rejected, lost, stolen or damaged.208.1.1.1. The Payment Incident National File provides information on banking risk, whilethe Credit Risk National File provides information on high banking risk. The latter isautomatically fed with information from the Payment Incident National File regarding thepersons who had caused major payment incidents that entailed penal sanctionsaccording to the laws in force.208.1.1.2. At the end of 1998, the Payment Incidents Bureau recorded 77,278 paymentincidents, worth almost lei 1,462 billion. In value terms, over 99 percent of them includedrejected debit payment instruments, and the remainder consisted of lost/stolen/damaged/cancelled debit payment instruments. Of the 5,547 accountholders involved insuch incidents, 90 percent have been entered into the Credit Risk National File and morethan half of them have been put under a ban.208.1.1.3. Dissemination of banking risk information by the Payment Incidents Bureau ismade either on its own initiative in order to alert the banking system and limit the risk ofnew payment incidents or at banks’ request, in their own name or their clients’, to help intaking decisions concerning the safety of banking business.208.1.1.4. The Payment Incidents Bureau intensified its co-operation with the publicauthorities (Ministry of Home Affairs and the Prosecutor’s Office attached to the SupremeCourt of Justice) alongside a sustained campaign meant to disseminate information. Tothis effect, a booklet entitled ‘The Payment Incidents Bureau’ was published anddistributed to banks for their own use and their clients’.208.1.1.5. The year 1998 saw the improvement in controlling the reliability of informationtransmitted by banks by taking over data on rejections from clearing and by creating acomputer application meant to compare the two series of data.208.1.2. The Credit Risk Information Bureau, the design of which is in an advancedstage, is the other component of the NBR’s banking information system. It will managecredit risk information on debtors, the value of credits granted by banks, type of creditand collateral, maturity, and disbursement related to credits granted.208.1.2.1. In 1998, the computer application to be used in the electronic management ofcredit risk information was tested and improved, and the CRIB service instructions draftwas adopted in compliance with the amended banking laws.


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III. The system for technical licensing and co-ordination of cashless payments andbanking information of national interest – SCUT

209. Technical licensing for cashless payments unfolds under a sub-system thatrequires, in the name of public interest and in the context of the emerging Romanianmarket, minimum standards of design and technical performance of cashless payments,both paper-based and cards.

210. The sub-system carries out both the preliminary methodological guidance for cardlicensing and the licensing of these instruments in compliance with Regulation No.6/1995 issued by the NBR on the principles and organisation of card payments bybanks. In accordance with this regulation, 5 cards were approved (2 VISA and 3Europay logo) for 3 banks. Moreover, this sub-system licensed 6 home-bankingautomatic systems (the payment order is generated electronically by connecting theeconomic agents with the banks’ headquarters) at Banc Post, Eximbank, Bancorex,Banca Transilvania, Robank, and Banca Unirea.

C. Operations with the State Treasury

211. The National Bank of Romania, as administrator of the General Account of Treasury,makes investments from the funds deposited with the latter and covers the temporarydeficit in the case of a debit balance at end of the day. Pursuant to the NBR Act (LawNo. 101 /1998), the central bank’s intervention to close the deficit of the General Accountof Treasury shall not exceed 7 percent of the budget revenues of the previous year andthe daily balance on credits granted and not yet repaid shall not be higher than twice theNBR’s capital and reserve fund. Under these conditions, the amounts charged to theGeneral Account of Treasury by the central bank plummeted in the second semester,accounting for only 5 percent of the amounts used in the first semester of 1998. The dailyaverage level of these amounts was lei 166 billion in 1998 compared to the level for 1997.

212. In 1998, the NBR made 55 investments from deposits of the General Account ofTreasury, chiefly between June and December (36 investments). The interest rate onthese investments ranged from 47 to 206 percent, exceeding the money market interestrate except for December.

213. The NBR acted on behalf of the state as regards the issuance, sale and repurchaseof government securities; thus, 68 issues of government securities ordered by theMinistry of Finance were launched in order to bridge the budget deficit. Unlike the prioryear, discount issues (41) outnumbered interest-bearing government securities. Maturityvaried from 20 days to 12 months, with 3-month T-bills still holding the upper hand. Thenominal value of government securities issues launched in 1998 totalled lei 41,771billion, of which one third were new issues. Although the NBR organised auctions for


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most of the government securities issues, investments were also made by publicsubscription, but their nominal value shrank to 10 percent of total.

214. In early 1998, the flat price method was used to sell government securities, but itwas replaced by the multiple price method in May. The new method of sellinggovernment securities implies the orderly listing of bids submitted by participantsaccording to the interest rate (discount rate respectively) and selling the securities, foraccepted bids, to the interest (discount) rate bid by each of the successful bidders inorder to sell out the issue.

215. At end-1998, 36 banks were trading in government securities both in own name andaccount, and in own name and on behalf of their clients, legal entities. Compared to1997, the number of clients for each bank rose considerably (from 127 to 250).

216. The development of the secondary market was stimulated by the auction-basedinvestments, which caused transactions to double their volume, from lei 8,251.5 billion tolei 16,096.4 billion. This market is, however, far from having developed its full potential, ifwe consider that in countries with a strong secondary market the ratio between thevolume of issues on the primary market and that of transactions on the secondary marketis 1:10, while in Romania the 1998 record high was 1:1.19 in December.

217. Interbank transactions further held the largest share of the trading (79.2 percent),the overwhelming majority (91.5 percent) of these transactions on the secondary marketcomprising open-market interventions by the central bank with a view to attaining itsmonetary policy objectives. It is to be noted the hefty rise in the volume of operationsperformed by banks in relation to their clients (from 2.3 percent in 1997 to 20.8 percentin 1998).

D. Management of international reserves

218. The tight management of international reserves by the central bank in 1998 wasaimed at diversifying the portfolio and making more active investment in order toincrease the returns from management and to ensure the liquidity for both external debtservicing and the intervention in the foreign exchange market.

219. 1997 saw a marked growth in international reserves due to the positive balanceresulted from the central bank’s interventions in the foreign exchange market to thedetriment of foreign capital flows, while 1998 witnessed less significant foreign exchangepurchases from domestic sources and foreign borrowing. The worsening economicenvironment influenced both the domestic foreign exchange market and the ratingagencies, which downgraded Romania and, implicitly, the loans granted by traditionalinvestors.


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220. In 1998, the NBR intervened more frequently and forcefully in the foreign exchangemarket compared to the previous year in order to prevent domestic currencydepreciation.

221. As far as external funding is concerned, the suspension of the arrangement with theIMF and the worsening of the world financial environment in the wake of the Russiancrisis induced the contraction of both official and private funding as foreign investorsdecided to reduce their exposure to East-European countries. Accordingly, Romaniafailed to conclude any sovereign loan agreement and the securities issue scheduled forthe second semester of 1998 was put off. Under the circumstances, the central bank’sforex reserves dropped sharply, from USD 2,530 million at 1 January 1998 to USD1,662.5 million at end-December 1998.

222. Inflows to foreign exchange reserve totalled USD 2,742.5 million and included thefollowing sources:

222.1. Domestic borrowings by the Ministry of Finance from banks and their clients: USD352.9 million.

222.2. Purchases on the forex market: USD 497.8 million.

222.3. Interests received from turning to account foreign exchange reserves: USD 177.8million. The main interest-generating sources were the following: current accounts, T-billsby the US Treasury and other US governmental agencies, the complex portfolio placedby the NBR with London Citibank, the forex swaps for Samurai-bond issues.

222.4. Foreign exchange surrenders to the forex reserves: USD 356.3 million. AsGovernment Decision No. 469/1996 on setting the foreign exchange fund for the energyprogramme was not yet revoked, it further produced incomes to the forex reserve,although no claim to finance energy imports from this fund had been made. Privatisationreceipts in amount of USD 213 million achieved by the SOF are also included.

222.5. Inflows from reserve requirements: USD 1,249.9 million.

222.6. Deposit from Bancorex: USD 100 million.

222.7. Other inflows (dividends, seizure of foreign exchange, return of unused amounts,repayments from the Ministry of National Defence): USD 7.9 million.

223. Gold reserves of the NBR were up from 93.9 tonnes to 100.3 tonnes in 1998. Similarto the previous year, the gold stock rose as a result of gold purchases (5.2 tonnes),swapping part of the silver reserve into gold (1.1 tonnes) and interests from goldplacements (104 kg). The gold stock placed abroad climbed to 12.5 tonnes.

224. Payments from foreign exchange reserves equalled USD 3,609.8 million andconsisted mainly of the following:


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224.1. Foreign debt capital repayments worth USD 383.5 million, of which USD 299million repayments to the EU and the IMF, USD 75.5 million repayments of thesyndicated loan granted by ABN AMRO-Citibank, and USD 9.1 million repayments ofsome loans granted by Canada and Finland.

224.2. Payments related to guarantees issued by the Ministry of Finance and theNational Bank of Romania worth USD 172.9 million.

224.3. Repayment of the amount deposited by the Bank of China with the NBR with aview to extending a prior similar contract concluded between the Bank of China andBancorex.

224.4. Interests payable to foreign borrowings (IMF included) and forex borrowingscontracted on the domestic market by the Ministry of Finance: USD 295.7 million.

224.5. Central bank’s transactions-related interests: USD 159.5 million (interests onborrowings contracted by the central bank – including swap agreements for Samuraibonds – and interests payable to loro accounts).

224.6. Sales on the forex market: USD 1,124.1 million (four times higher compared to the1997 level).

224.7. Reserve requirements-related outflows: USD 1,352.9 million.

224.8. Other payments worth USD 29.3 million included quotas and subscriptions tointernational institutions, payments under agreements concluded with Germany,payments to the Ministry of National Defence’s account, and payments related to theNBR’s operations.

E. International activity of the National Bank of Romania

225. At 26 March 1998, Romania assumed the obligations under Article VIII, sections 2,3 and 4, of the IMF’s Articles of Agreement on domestic currency convertibility and the4th amendment to the IMF’s Articles of Agreement concerning a new sole SDRallocation. Moreover, talks have been initiated for new credit arrangements with both theIMF and the World Bank.

226. The IMF granted technical assistance to the NBR in the following fields: balance ofpayments, supervision, restructuring of the banking system, etc.

227. Similar to the preceding years, the NBR participated in the spring and autumnsessions of the Interim Committee and the Development Committee of the IMF and theWorld Bank as well as in the annual meetings of the Governors’ Council of the IMF andthe World Bank. The NBR officials stated their position for stronger support from the IMFto the transition economies, for a more urgent new sole SDR allocation, rise inparticipation quotas of member countries, and new credit facilities.


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228. In 1998 as well, the NBR representatives in the IBEC and the IIB participated,together with the officials of the Ministry of Finance, in the spring and autumn meetingsof the said institutions. After 1990, the two international institutions have performedchiefly market-economy banking operations, i.e. securities dealings on the Russianmarket, placements with commercial banks. Recently, the two institutions focused on thestabilisation of their financial standing by regulating the debts and obligations of membercountries towards the two banks and the debts of these institutions to western creditors.Moreover, the IIB will widen its lending activity and will provide new banking services.The Moscow and Bratislava meetings of the two banks analysed the financial standing ofthe IBEC and IIB and the measures on their 1999 business agenda.

229. In 1998, in order to prepare Romania’s accession to the EU, the NBR strove to takeover the acquis communitaire to be implemented in the fields of activity specific to thecentral bank. Thus, in the first semester, multilateral meetings were held to analyse thetake-over of the acquis in the field of free capital movements, banking services andeconomic and monetary union. Sections concerning the NBR’s fields of activity wereroughed out and included in the chapters dealing with the fulfilment of economicaccession criteria and adjustment of the acquis communitaire of the National Programmeof Romania’s accession to the EU and the Annual Report on Romania’s advance inpreparing its accession to the EU. These sections were sent to the EuropeanCommission in 1998.

230. Technical assistance projects under the PHARE programme were furtherimplemented in 1998. Thus, the operational audit of the NBR was achieved in order toimprove the functions and role-played by the bank as well as its harmonisation to the EUstandards. Funds allocated in support of this project totalled ECU 475,000. The technicalassistance contract for the Commission for privatisation of Banc Post, through which theevaluation report and the feasibility study for the privatisation of the bank wereconcluded, came to an end. The amount allotted to this project equalled around ECU535,000. Starting 1998, the PHARE assistance concentrated on enhancing the NBR’sadministrative and institutional capacity to take over and implement the acquiscommunitaire in compliance with the targets laid down by the National Programme forAdoption of the Aquis Communitaire and Romania’s Partnership for EU Accession. Tothis purpose, the NBR was allotted ECU 2 million under the PHARE programme for thefollowing projects:

230.1. The Project for Institutional Development of the NBR that will be achieved througha programme that brings together the NBR and a consortium of central banks (Banquede France, Banca d’Italia, De Nederlandsche Bank) under the leadership of Banque deFrance. The experts of the said central banks granted technical assistance in thefollowing fields: bank supervision, monitoring and internal audit, balance of payments


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statistics, gradual liberalisation of the capital account, the design of an IT system for themanagement of human resources. The amount allotted to this project runs at ECU 850,000.

230.2. The project for computerising the NBR’s accounting operations and realising an ITmanagement system, worth ECU 1,150,000, that will be achieved through standardauction procedures.

231. Retrieval of Romania’s claims derived from exports operations and economic co-operation before 1989, as well as the settlement of clearing and co-operation accountswas still one of the NBR’s concerns. As a member of the Inter-department Commission,the NBR took part in the negotiations for retrieval of outstanding debts, held eitherdirectly with the institutions appointed by the governments of the respective countries orby the agency of some specialised firms, with Albania, Bangladesh, Bulgaria, Guinea,Mozambique, Peru, Syria, the Russian Federation, and Zambia. As a result, the amountsdue to Romania by Peru and Zambia were retrieved.

F. Other activities

232. The publications released by the NBR, whose content and design are improvedpermanently, remained the key instrument of informing the public on the central bank’smonetary policy stance, the financial and banking system, and the general economicenvironment. The mailing list includes public institutions, central banks, internationalfinancial institutions, consultancy firms, rating agencies, commercial banks, embassies,education and research institutions, editorial offices of financial periodical publications,libraries. At the end of 1998, the mailing list covered more than 3,000 subscribers, ofwhich about 1,800 foreign ones. The access to the NBR’s publications will soon increaseas a web site is being designed.

233. At present, the NBR issues the following publications: Annual Report, MonthlyBulletin, Quarterly Bulletin, Macroeconomic Indicators – charts, Economic StudiesDigest, National Accounts (in co-operation with the National Commission for Statistics),Monthly Business Survey and occasional papers.

234. In order to facilitate the public’s access to financial information, the NBR provideddaily data on the money and foreign exchange markets to several newspaperspublished in Romanian and English.

235. In 1998, NBR’s Legal Department centred on drawing up, in co-operation with thespecialised departments, the three draft laws on banking activity: Banking Act (Law No.58/1998), the NBR’s Act (Law No. 101/1998) and Law No. 83/1998 on bankruptcyproceedings for banks. Besides, the Legal Department endorsed 732 orders,regulations, norms and circulars issued by the specialised departments of the NBR.


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Given the permanent updating of the legal framework governing the banking business,Legal Department officers strove to provide the necessary information in order to makenormative acts as clear as possible so that no legal provision be misinterpreted ormisapplied by the other departments.

236. The legal advisers represented the NBR in 1,050 civil, commercial, penal andadministrative contentious cases and co-operated with the financial authorities and theCourt to retrieve the central bank’s claims.

237. Inspections by the NBR in 1998 detected and mitigated the risks that might havebeen incurred by the inspected banks, and helped drawing up and supplementing theregulations in the financial and banking fields. Similar to the previous year, inspectionswere conducted either at the request of the NBR’s Board or according to the provisionsof service instructions. These inspections were basically aimed at the following:performing forex operations; recording and reporting of forex operations representingtransactions included in the balance of payments; organisation and functioning of thePayment Incident Bureau; performance of cash operations; multilateral netting of paper-based cashless interbank payments; minimum reserve requirements. Following theascertained shortcomings, immediately applicable measures have been taken as well aspunitive measures to be applied right in the wake of the inspection.

Chapter VII. Balance sheet and profit and loss account of the NBR

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Chapter VII. Balance sheet and profit and loss account of theNational Bank of Romania

A. Balance sheet as of 31 December 1998

238. Balance sheet of the NBR reflects the developments of the national economy andperformance of monetary authority as well. As of 31 December 1998 balance sheetshowed lei 60,872.8 billion, following increases recorded throughout 1998. The centralbank’s balance sheet highlights relatively significant changes due mostly to revaluationof claims and commitments as well as of own funds.

Table 11. Balance sheet of the NBR

Items1998/1997(%)

31.12.1997 31.12.1998 31.12.1997 31.12.1998 ASSETS 1. Precious metals and other valuables 9,194.3 10,279.5 111.8 17.4 16.9 2. Refinancing credits and other credits 685.0 613.4 89.5 1.3 1.0 3. Financial means and claims on forex operations 31,199.6 32,169.5 103.1 59.0 52.9 4. Government securities 3,271.2 9,141.8 279.5 6.2 15.0 5. Settlements from operations with the IMF 5,030.5 3,920.7 77.9 9.5 6.4 6. Settlements and debtors 2,065.0 3,625.4 175.5 3.9 6.0 7. Fixed assets (remaining value) 170.3 563.7 331.0 0.3 0.9 8. Other assests, capital expenditures and means 203.5 558.8 274.6 0.4 0.9 9. Profit paid 1,044.7 - - 2.0 - ASSETS TOTAL 52,864.1 60,872.8 115.1 100.0 100.0

LIABILITIES 1. Own funds 364.3 528.8 145.2 0.7 0.9 2. Special revaluation account - 17.1 - - 0.0 3. Notes and coin in circulation 9,626.9 12,296.7 127.7 18.2 20.2 4. Banks' deposits, deposits frozen at the request of the Court and deposit taking by the NBR 7,864.0 8,001.3 101.7 14.9 13.1 5. Resources from forex operations 32,264.1 38,814.2 120.3 61.0 63.8 6. Extrabudgetary funds and settlements with government budget 988.1 50.0 5.0 1.9 0.1 7. Settlements and creditors 355.2 389.9 109.8 0.7 0.6 8. Fixed assets fund 175.8 791.9 450.5 0.3 1.3 9. Other liabilities and investment sources 181.0 - 0.5 0.3 -10. Financial results 1,044.7 -17.1 x 2.0 x LIABILITIES TOTAL 52,864.1 60,872.8 115.1 100.0 100.0

Absolute figures(bill. lei)

Share of balance sheet (%)

239. The assets side of the balance sheet shows the following developments:

239.1. Under the item Precious metals and other valuables, monetary gold was in thelead, accounting for about 98.8 percent (lei 10,155 billion). The stock of gold rose from93.9 tonnes to 100.3 tonnes during 1998 following both the increase in domestic outputand the conversion of silver into gold. Revaluation of gold as at 31 December 1998 wasthe consequence of the change in gold price from lei 95,823/gr to lei 101, 272/gr.


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239.2. Refinancing credit and other credits declined by 10.5 percent to lei 613.4 billion.As in 1997, this item shows a low figure, reflecting the almost neutral impact of the NBR’srefinancing on the liquidity in the banking system. Directed credit was no longer grantedand banks’ resort to lombard credit lessened. Starting 1 July 1998, following theenforcement of the new NBR Act, overdraft credit was under a ban. As of 31 December1998, refinancing credits totalled lei 555.5 billion, of which loan to Banca Agricolã invirtue of Art. 4 of Law No. 20/1996 amounted to lei 503.1 billion; loan granted to BancaDacia Felix in virtue of Law No. 135/1996 in an amount of lei 52.0 billion, and preferentialloans totalling lei 0.4 billion falling due on 31 March 1999 under Government DecisionNo. 61/1993 to support farmers to purchase tractors and agricultural machines.

239.3. Financial means and claims from forex operations totalled lei 32,169.5 billion,accounting for more than half of total assets (52.9 percent). This heading encompassesthe following items:

� forex deposits with foreign banks and international financial institutions in an amountof lei 17,136.6 billion, down lei 1,731.3 billion from a year earlier, due to repaymentof credits from the IMF and credit-related interest and commission payments;

� central bank’s participation quotas in international financial institutions, such as theIMF, BIS, EBRD, MIGA and IFC augmented by lei 1,391.6 billion (18.2 percent) fromthe previous year end, amounting to lei 9,046.6 billion. This increase was due tocurrency depreciation;

� portfolio investment amounted to lei 5,985.7 billion, posting a lei 1,310 billion growth,following the purchase of new T-bills on the US market.

239.4. The NBR’s government securities portfolio expanded significantly (by 179.5percent), amounting to lei 9,141.8 billion at end-1998 from lei 3,271.2 billion at end-1997,increasing to 15 percent of total assets compared with 6.2 percent. This movement wasdetermined by the NBR increasing its purchases of T-bills on the secondary market.

239.5. Settlements from operations with the IMF amounted to lei 3,920.7 billion at end-December 1998, representing amounts, not yet settled, from unfavourable differences inaccordance with Law No. 97/1997, declining by lei 1,109.8 billion compared with theprevious year. This decrease resulted from compensation of unfavourable differencesextant at end-December 1997 for favourable differences resulted from the specialrevaluation account opened in pursuance of Art. 44 of Law No. 101/1998 (NBR Act).

239.6. The item Settlements and debtors registered a 75.5 percent growth, totalling lei3,625.4 billion. As of 31 December 1998, this item accounted for 6 percent of totalbalance sheet, showing an increase of 2.1 percentage points compared with the 1997year-end. More than half of this item includes overdue payments to the NBR,representing loans, interests and commissions amounting to lei 1,914.4 billion fromBanca Dacia Felix and Credit Bank that became insolvent. This item also includes


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interest receivable from government securities, foreign exchange investments, loans toDacia Felix and Banca Agricolã, and from Krivoi Rog works investment.

239.7. Fixed assets (at the remaining value) moved up, from lei 170.3 billion to lei 563.7billion. The lei 370.8 billion rise was due mostly to revaluation of premises, land, andspecial construction works under Government Decision No. 983/1998 and to a lesserextent to newly-registered fixed assets, which increased by 22.6 billion.

239.8. Other assets, means, and capital expenditures worth lei 558.8 billion representmeans and capital expenditures, inventories and materials, and projected expenditures.Differences resulted from revaluation of the ongoing investment are included under thisheading.

240. The liabilities side shows the following developments:

240.1. Own funds totalled lei 528.8 billion at end-1998, posting lei 164.5 billion increase(45.2 percent) from end-1997. It is worth mentioning that in July 1998, the central bank’sown funds moved up from lei 5 billion to lei 100 billion on the back of reserve fund, incompliance with Art. 39, par. 2 of Law No. 101/1998 (NBR Act). Reserve fund amountedto lei 95.4 billion, being calculated as 20 percent of the gross profit of the central bank.

240.2. Special revaluation account opened in accordance with Art. 44 of Law No.101/1998 (NBR Act) totalled lei 17.1 billion at end-1998, representing favourabledifferences from revaluation of foreign exchange assets and liabilities. Theaforementioned amount was earmarked for financing of losses at the close of 1998financial year but was recorded on bank’s books in May 1999 once the balance sheet ofthe central bank was approved by the NBR Board of Directors.

240.3. Notes and coins in circulation summed lei 12,296.7 billion at end-1998, up 27.7percent from end-1997 (lei 2,669.8 billion). Notes and coins in circulation accounted for20.2 percent of total balance sheet at year-end, posting a 2 percentage point risecompared with the same period of previous year. Currency outside banks contributedmostly to the increase in this item, up 25.3 percent to lei 11,525 billion on the year.

240.4. The item Banks’ deposits, frozen at the request of the Court and deposit-taking bythe NBR amounted to lei 8,001.3 billion, registering a modest increase. This itemdeclined in relation to balance sheet from 14.9 percent to 13.1 percent. Banks’ minimumreserves set up in lei, the amounts frozen at the request of the Court (most of thembelonging to Banca Dacia Felix, Banca Agricolã and Bancorex in an amount of about lei79.8 billion), and deposits taken by the central bank from banks are included under thisitem. Reserve requirements in lei accounted for 84.9 percent (lei 6,793.5 billion) of totalitem. The new provisions related to reserve requirement regulation stay at the root of thehigh level of banks’ deposits. This item also encompasses deposits in lei taken by theNBR from banks in an amount of lei 1,128 billion, their volume decreasing markedly bylei 5,664.3 billion.


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240.5. Resources from forex operations totalled lei 38,814.2 billion, i.e. 63.8 percent oftotal balance sheet. The lei 6,550.1 billion increase was due more to currencydepreciation and less to increase in forex liabilities. The following items are includedunder this heading:

� deposits of international financial institutions with the NBR (IMF, IBRD, and MIGA)amounted to lei 12,918.1 billion. Deposits of the IMF (lei 12,776.9 billion)represented the equivalent in lei of SDR purchases by the central bank under thearrangements with the IMF;

� banks’ loro deposits worth lei 10,782.9 billion (reserve requirements kept in USdollar);

� borrowings from foreign banks of lei 998.3 billion, representing the equivalent in leiof loans extended by Citibank (lei 450.8 billion) and Merrill Lynch (lei 547.5 billion);

� foreign exchange-denominated bonds issued by the NBR (lei 10,357.3 billion) onEuropean and Japanese markets equalled lei 2,464.0 billion and lei 7,893.3 billion,respectively;

� funds earmarked for foreign participation quotas to the IMF, IBRD, EBRD, MIGA,and IFC equalled lei 3,757.5 billion.

240.6. The item Extrabudgetary funds and other settlements with the government budgetincludes government operations carried out by the NBR through accounts of theTreasury and accounts of various extrabudgetary funds. As of 31 December 1998, theGeneral Account of Treasury showed a credit balance of lei 22.9 billion. Profit tax for1998 (lei 27.1 billion) was paid up in January 1999 and also included under this item.

240.7. Settlements and creditors were up 9.8 percent on 1997, totalling lei 389.9 billion.This item includes settlements of wages and salaries and deposits of employees,creditors, and interest payable on deposits taken by the NBR from banks falling due inthe first few days of 1999.

240.8. Fixed assets fund soared by lei 616.2 billion from lei 175.8 billion to lei 791.9billion, following the record of differences resulted from revaluation of fixed assets incompliance with Government Decision No. 983/1998.

240.9. Financial results summed lei 17.1 billion as of 31 December 1998, and were to becovered from special revaluation account following the approval of balance sheet by theNBR Board of Directors in May 1999.

B. Profit and loss account

241. As of 31 December 1998, the NBR recorded a profit of lei 12.4 billion, down by lei1,032.2 billion from previous year. Both incomes and expenditures were affected byregulations concerning the record of differences from revaluation of foreign exchange


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assets and liabilities, and precious metals as well. By 30 June 1998, unfavourabledifferences from revaluation of foreign exchange assets and liabilities were recorded onthe expenditures side up to the limit of favourable differences from revaluations of assetsand liabilities in foreign exchange that were recorded on the income side in accordancewith Art. 4 of Law No. 97/1997 concerning government participation quotas in the IMFand regulation of financial influences from transactions with the IMF. Since 1 July 1998,in compliance with Art. 4 of Law No. 101/1998 (NBR Act), differences from revaluation offorex assets and liabilities have been recorded under a special revaluation account.

242. Expenditures incurred by the NBR totalled lei 5,921.8 billion in 1998.

242.1. Operating expenditures amounted to lei 5,460.5 billion, accounting for 92.2percent of total expenditures. Interest payable to banks’ deposits recorded the highestincrease (lei 2,263.3 billion). Interest payable to deposit-taking operations amounted tolei 2,340.3 billion. The rise in minimum reserve ratio lay at the root of heightened intereston minimum reserve (lei 656.5 billion). Interest payable to Treasury’s deposits equalledlei 291.8 billion. It is noteworthy that the rise in expenditures incurred from interests andcommissions paid for loans from the IMF (lei 293.4 billion) and for loans from othersources (lei 1,543 billion) was attributed to currency depreciation.

242.2. General expenditures (wage and salary expenses, administrative expenses,a.s.o.) amounted to lei 461.3 billion, representing 7.8 percent of total expenditures.

242.3. Profit tax due (lei 27.1 billion) was higher than gross profit (lei 12.4 billion) as aresult of higher-than-admitted levels of some undeductible fiscal items on theexpenditures side, such as sponsorship, social expenses, advertising, losses etc., whichamounted to lei 23.9 billion. The difference of lei 17.1 billion between taxable profit andprofit tax was to be covered from special revaluation account (in accordance with Art.44, par. 2 of Law No. 101/1998), following the approval of balance sheet by the NBR’sBoard of Directors in May 1999.

243. In 1998, incomes equalled lei 5,934.2 billion.

243.1. Interest on government securities soared markedly from the previous year,reaching lei 2,904 billion compared with lei 277.1 billion, as a result of large purchases ofT-bills on the secondary market.

243.2. Incomes from interests and commissions on forex deposits rose by lei 654.9billion (by 68.2 percent), amounting to lei 1,614.5 billion. The growth was ascribed to therise in foreign claims of the NBR and currency depreciation.

243.3. Incomes from interest on refinancing credit dropped by lei 1,133.7 billioncompared with 1997, reaching lei 625.2 billion, reflecting the decline in such credits.Interest receivables from Banca Agricolã (lei 447.7 billion) are included under this item.


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Table 12. Profit and loss account - bill. lei -

EXPENDITURES 1997 1998 INCOMES 1997 19981. Operating expenditures 9,057.4 5,460.5 1. Incomes from bank operations 10,205.7 5,464.2 - interests paid to banks, - interests in lei from banks 1,758.9 625.2 Savings Bank, and Treasury 1,025.1 3,288.5 - interests from Treasury - interests and commissions paid certificates 277.1 2,904.0 for IMF loans 249.9 293.4 - interests and commissions in - interests and commissions paid foreign exchange 959.6 1,614.5 in foreign exchange for loans - favourable exchange-rate received by NBR from differences 54.1 50.9 other sources 1,213.5 1,543.1 - foreign exchange denominated - unfavourable differences from securities - 161.4 revaluation of forex assets and - favourable differences from liabilities and of precious metals revaluation of forex assets and (Law No. 97/1997) 6,467.3 108.2 liabilities and of precious - unfavourable exchange rate metals (Law No. 97/1997) 7,156.0 108.2 differences 42.7 132.1 - note printing and coin mintage- related expenditures 52.1 77.4 - other 6.8 17.8

2. General expenditures 307.9 461.3 2. Other incomes 204.3 470.0 - wage, salary expenditures 195.2 326.7 - administration costs 33.5 63.9 - other 79.3 70.6

3. Expenditures - total (1+2) 9,365.3 5,921.8

4. Profit 1,044.7 12.4

TOTAL 10,410.0 5,934.2 TOTAL 10,410.0 5,934.2

243.4. Other incomes from the NBR’s operations equalled lei 470.0 billion, representingcommissions on payments, on banknote distribution (call in banknotes and issue newones), and incomes from operations with precious metals.

Chapter VIII. Guidelines of the NBR’s policies for 1999

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A. Domestic economic environment

244. The year 1999 is viewed as crucial for the transition process in Romania. Someeffects of the recession are likely to occur further in the months ahead, while the processof overcoming the crisis will involve unavoidable costs that must be assumed. However,speeding up the reforms and sticking to the pace and direction of economic policyalready in progress since the latter part of 1998 would allow Romania to steam aheadand, in the foreseeable future, would clear the way for meeting the criteria necessary tothe integration with the Euro-Atlantic structures.

245. The effects of recession are likely to further affect some macroeconomic indicators.Accordingly, real GDP is expected to decline by 3 - 3.5 percent and unemployment rate isenvisaged to exceed 12 percent of the working population. Economic restructuring (e.g.rapid downsizing of loss-making enterprises) may engender unfavourable developments,but at the same time it makes possible the disbursement of funds for the resumption of asound economic growth. A resolute approach of structural policies pursued by theauthorities might entail an interruption of the unfavourable drift in the latter part of 1999,allowing resumption of stable and lasting economic growth.

246. External financing constraints thwart further the economic programme. The reasonsunderlying this state of affairs are the following:

246.1. High external debt service. Foreign public and publicly guaranteed debt servicedue in 1999 amounts to over USD 2,302 million, i.e. 23 percent of exports of goods andservices.

246.2. Unsustainable widening of the current account deficit during 1998, an atypicalphenomenon that occurred even under the circumstances of domestic recessiontriggers a painful adjustment in the short term.

246.3. Unfavourable international environment. After the crises that hit Southeast Asia,Russia and Brazil, the first part of 1999 witnessed the conflict in Yugoslavia, which apartfrom the unfavourable influence on foreign investment flows to the region had a negativeimpact on the Romanian economy, entailing losses of hundreds of millions of US dollars.These events put additional pressures, circumscribing the margin for manoeuvre of theRomanian authorities and imposing adoption of very cautious policies.

247. Romania’s economic programme for 1999 enjoyed the IMF and World Bank stampof approval, helping Romania regain access to the international capital markets andallowing a bearable domestic adjustment. Implementation of the economic programmeagreed upon with the international financial institutions stands for a clear signal on the


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direction the Romanian economy embarked on, in harmony with mechanisms andinstruments governing the advanced economies. Although the authorities will havelimited room for manoeuvre in 1999 too, developments are heading in the right direction,so that at the end of 1999, the Romanian economy will resume economic growth and thebenchmarks enabling the EU membership will improve markedly.

248. The programme for 1999 focuses on the following objectives:

248.1. Narrowing of the general government deficit in order to buttress disinflation andensure a sustainable dynamics of domestic and external public debt. Against thebackdrop of relatively reduced external financing and low monetisation of the economy,a reduction of the deficit will contribute to release of the funds necessary to bolster non-government sector and, thereby, to allow room for resumed growth.

248.2. Continuation of the disinflation process with a view to narrowing external deficitalthough the extremely tight external constraint will entail real depreciation of thedomestic currency. Accomplishment of this objective relies on implementation of aprudent monetary policy and an in-depth correlation of macroeconomic policies.

248.3.. Significant reduction of the state-run sector losses through acceleration ofprivatisation, restructuring and closure of loss-making companies. Budgetary restraint onenterprises reduced access of ailing companies to resources and good governance ofstate-run companies are essential prerequisites for the substantial decrease in losses.

248.4. Achievement of a closer correlation between the increase in wages and salariesand better output performance, between growth of labour productivity and reduction ofarrears with a view to reining in inflationary pressures. Accordingly, steps should betaken to restrain wage development in the budgetary sector and contain wage bills in loss-making companies in line with the nominal levels recorded in the last quarter of 1998.

248.5. Narrowing of the external deficit to a sustainable level from external financing viewpoint, aiming primarily to ensure resources for timely payment of debt serviceobligations. This objective will be met through the achievement of the main targetsincluded in the economic programme, especially the broad-based economicrestructuring and real depreciation of the currency in the first half of 1999 that will helpthe exchange rate attain the equilibrium.

B. Main features of the NBR’s policies

249. In establishing the policies to be pursued in 1999, the NBR took account of theaforementioned constraints, striving to interlock its targets with those included in theGovernment’s programme. Given the tasks incumbent on the central bank inaccordance with the NBR Act, the monetary and foreign exchange policies include thefollowing two key objectives:


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249.1. Continuation of the disinflation process already achieved in 1998, aiming at a 35percent increase in consumer price by the year-end. This level takes into account priceadjustments triggered by removal of cross subsidies and by conclusion of priceliberalisation. In addition, the unfavourable impact of currency depreciation in real terms,which occurred in late 1998 and in the first few months of 1999, was taken intoconsideration as well.

249.2. Adjustment of balance of payments by narrowing the current account deficit. In1999, the current account deficit is projected to decline to USD 2.2 billion, i.e. USD 800million less than in 1998. These figures allow for the unfavourable effects the crisis inYugoslavia had on the Romanian economy.

250. In order to attain the aforementioned objectives, the NBR will use monetary aggregatesas intermediate targets and control over monetary base as an operational instrument.The latter instrument proved efficient during previous years too, owing to its low volatility.As in the previous years, when assessing the quantitative targets the NBR will takeaccount of market-determined interest rate and exchange rate developments as well.

251. A sustainable, lasting decrease in external deficit is ultimately conditional on abroad-based restructuring of the national economy. Given the experience of the previousyears, the NBR will aim to prevent the real exchange rate of the leu from significantfluctuations. Although the real exchange rate of the currency depreciated in the latterhalf of 1998 and in the first few months of 1999, the NBR’s opinion is that there appearslittle reason for the exchange rate of the leu to depreciate any further in real terms in thelatter half of 1999. Moreover, developments of the main economic and financialindicators suggest the current exchange rate allows external deficit to narrow andremain within the targets for 1999.

252. In the latter half of 1998 and the first half of 1999, banking sector had to come togrips with problems of ailing state-run banks. The weaknesses of banks have beencaused by a number of factors, either objective or having their roots in mismanagement.The NBR points up that restructuring of the banking system, restoration of people’sconfidence in the banking system and improvement of its functioning are called for torevitalise the reform process. Therefore, the NBR will strengthen prudential supervisionby issuing adequate banking provisions and by drafting a clearly defined programmeaiming to enhance transparency of the banking industry, in order to get timely informationabout difficulties encountered by some banks and take prompt remedial measures.

253. A long-term consistent strategy to be adopted by the Government and Ministry ofFinance with a view to ensuring external financing of the economy will help Romania turnto good account, with as low as possible costs, the foreign loans needed for puttingdomestic economy onto a sustained growth path. External financing will back Romaniato overcome short-term difficulties related to financing of the trade gap and external debt


107

service and will offer a favourable message to the international financial circles on theconsistent policies pursued by the authorities. In this context, with the external debtservice peak being overcome and international rating agencies assigning higher creditratings, both the Government and the NBR aim to help Romania regain access to theinternational capital markets, thereby confirming consistency of macroeconomicprogramme for 1999.

C. Quantitative appraisals

254. In establishing the monetary programme, the authorities assumed an increase inmonetary base of about 35 percent by December 1999 compared with end-1998.Consideration has been given to the expected increase in nominal GDP, cash operationtrends, and assessment of money demand. Monetary base could be revised in the eventthat the aforementioned parameters would undergo significant changes from the targets.The rise in monetary base will entail a more than 35 percent increase in broad money(M2), indicating a cautious continuation of the monetisation process that must besubstantiated by an appropriate money demand.

255. It is of the utmost importance that the increase in money supply should be based onthe increase in the share of foreign assets. Banks’ foreign assets should account formore than one fourth of the growth in broad money, and central bank’s foreign assetsshould represent the only source of increase in monetary base. Gross foreign assets ofthe NBR are envisaged to increase to about USD 400 million; reserve assets, includinggold, are expected to reach about USD 3 billion by the end of 1999.

256. Credit to non-government is estimated to increase by 8.7 percent in real terms. Thisdevelopment is likely to contribute to the rebound of economy, provided the access ofailing companies to resources is limited. The rise in credit to non-government isconditional on the significant decrease in credit to government since public deficit will becovered from external resources. The drop in resources attracted by the Treasury fromthe banking system will also have a favourable impact on interest rates both in theinterbank market and in relation with non-bank clients.

257. By achieving the objectives set forth in the Government’s economic programmeand in the NBR’s monetary and foreign exchange programme, a significant fall in interestrates in the banking system will occur. By mid-year, the interest rates reflected bothpersistent inflationary pressures induced by unavoidable price adjustments and market-operators’ uncertainties surrounding both the authorities’ capability to implement theenvisaged programme and the international financial institutions’ willingness tofinancially support this programme. As long as the resolute approach of the programmeappears to bear fruit, autonomous capital inflows are expected to increase and interestrates are set to decrease, thereby contributing to economic growth, without anyinflationary pressures.

ORGANISATION CHART OF THEat December 31,

Note: Color patterns show

BANKINGPAYMENTS AND

RISKMANAGEMENTGENERAL

DEPARTMENT

1. Banking Companies Refinancing and Market Operations Department

2. State Treasury Operations Department

3. International Reserves Management Department

4. Foreign Exchange Regulation & Supervision Department

5. Message Processing and Authentication Division

GOVERNOR

PRIME VICE - GOVERNOREmil Ghizari

CASHOPERATIONS & PRECIOUS

METALS GENERAL DEPARTMENT

GD V

1. Cash Operations Department

2. Precious Metals Department

3. Issuance Department

MONETARY & FOREIGN

EXCHANGE POLICYGENERAL

DEPARTMENT

GD I

Director General

Eugen Rãdulescu

B O A R D O F

1. Monetary Policy & Statistics Department

2. International Relations and European Integration Department

3. Balance of Payments Department

4. Publications & DocumentationDepartment

DirectorAdriana Daniela Marinescu

DirectorLia Rodica Tase

DirectorSurica Rosentuler

MONETARY, FOREIGN EXCHANGE & CREDIT

OPERATIONSGENERAL

DEPARTMENT

GD II

Director General

George Mucibabici

DirectorMarius Cristian Caliþoiu

DirectorAdrian George Grigoriu

DirectorAlexandru Matei

Head of Division Stere Paris

LICENSING,REGULATION AND SUPERVISIONGENERAL

DEPARTMENT

GD III

Director General

Marian Laurenþiu Mustãreaþã

1. Licensing and Prudential Regulations of Banking Companies Department

2. Banking Supervision Department

3. Accounting Methodology & Balance Sheet Analysis Department

DirectorNicolae Rotaru

DirectorPetre Tulin

GD IV

Director General

Vasile Sãvoiu

1. Cashless Payment InstrumentsDepartment

2. Clearing & SettlementDepartment

3. Risk Management Department

DirectorAurora Iancu

DirectorMarianaDiaconescu

Directorªerban Marian Epure

Director General

Dan Spiridon Florescu

DirectorPaula Stroescu

DirectorPetru Horia Ozarchevici

DirectorIonel Niþu

DirectorEmilian Antonescu

NATIONAL BANK OF ROMANIA

General Departments' coordination

1998

Mugur Isãrescu

GENERALSECRETARIAT

GD VII

1. Board Secretariat

2. Public Relations Department

ORGANISATIONAND SERVICES GENERAL

DEPARTMENT

GD VIII

1. Organisation and Human Resources Department

2. Investment Department

3. Administration Services Department

4. Administration of NBR Club

CONTROLGENERAL

DEPARTMENT

GD IX

1. Banking Companies Control Department

2. Foreign Exchange Operations Control Department

3. Internal Control Department

4. Coordination and Analysis of Control Activity Division

LEGALDEPARTMENT

INFORMATIONTECHNOLOGY,STATISTICS

PROCESSING & ACCOUNTINGGENERAL

DEPARTMENT

GD VI

1. Information TechnologyDepartment

2. StatisticsProcessingDepartment

3. General AccountingDepartment

D I R E C T O R S

Director General

Vasile Ifrim

DirectorCãlin Mihai Rangu

DirectorRozalia Viorica Nistor

Director General

CristianPãunescu

DirectorAlexandru Pencu

DirectorAdrian Vasilescu

Director General

PetreConstantinescu

DirectorLiliana Gabriela Tudor

DirectorDoina Sanda Mahala

DirectorIon Dan Dinescu

Director General

Nicolae Cintezã

DirectorEmil Vasile

DirectorIoan Adrian Cosmescu

DirectorMihai Dãscãlescu

Director

Gheorghe Mihai Ionescu

DirectorGheorgheDunãrinþu

Head of DivisionEugenia Macavei

BRANCHES(41)

VICE - GOVERNORMihai Bogza

VICE - GOVERNORCristian Popa

GOVERNOR'sOFFICE

Director Dumitru

OFFICES

X

112

THE ROMANIAN PARLIAMENT

THE CHAMBER OF DEPUTIES THE SENATE

D E C I S I O N

on appointment of members of the National Bank of Romania’s Board of Directors

In pursuance of Art. 34 par. (3) of Law No. 101/1998 (the National Bank ofRomania Act) and to Art. 1 par. (27) of the Regulation on joint meetings of the Chamberof Deputies and the Senate,

The Romanian Parliament enacts the present decision.

Sole article – The persons included in the appendix to the present decision shallbe appointed as members of the Board of Directors of the National Bank of Romaniaunder a six-year mandate.

The decision was taken during the joint meeting of the Chamber of Deputies andthe Senate on 16 December 1998 in compliance with provisions under Art. 74 par. (2) ofthe Constitution of Romania.

CHAIRMAN OF THE CHAMBER OF DEPUTIES CHAIRMAN OF THE SENATEION DIACONESCU PETRE ROMAN

Bucharest, 16 December 1998No. 50

APPENDIX

BOARD OF DIRECTORSof the National Bank of Romania

1. Mugur Isãrescu - Chairman of the Board Governor of the National Bank of Romania

2. Emil Iota Ghizari - Vice-chairman of the Board Prime Vice-governor of the National Bank of Romania

3. Mihai Bogza - Member of the Board Vice-governor of the National Bank of Romania

4. Cristian Popa - Member of the Board Vice-governor of the National Bank of Romania

5. Silviu Cerna - Member of the Board6. Constantin Ionete - Member of the Board7. Ágnes Nagy - Member of the Board8. Nicolae Dardac - Member of the Board9. Nicuºor Ruiu - Member of the Board

113

BOARD OF DIRECTORS OF THE NATIONAL BANK OF ROMANIAappointed by the Romanian Parliament in the meeting held on 16 December 1998

Prof Mugur Constantin Isãrescu, PhDGovernor, Chairman of the Board

Born on 1 August 1949 in Drãgãºani, Vâlcea CountyFaculty of International Economic Relations, Academy of Economics, Bucharest

Mihai BogzaVice-governor,

member of the BoardBorn on 6 July 1956

in Sãveni, Ialomiþa CountyFaculty of International

Economic Relations,Academy of Economics,

Bucharest

Cristian Popa, PhDVice-governor,member of the BoardBorn on 17 May 1964in BucharestFaculty of Commerce,Academy of Economics,Bucharest

Emil Iota Ghizari, PhDPrime Vice-governor, Vice-chairman of the Board

Born on 17 September 1951 in ConstanþaFaculty of Accountancy and Finance, Academy of Economics, Bucharest

Prof Silviu Cerna, PhDmember of the Board

Born on 23 January 1950in Vucova, Timiº County

Faculty of Economics,Timiºoara

Prof Nicolae Dardac, PhDmember of the BoardBorn on 6 August 1946in Nicolae Bãlcescu, Tulcea CountyFaculty of Banking and Finance,Academy of Economics,Bucharest

Prof Constantin Ionete, PhDmember of the Board

Born on 24 March 1922 in Mãldãreºti, Vâlcea CountyFaculty of Philosophy, Bucharest

Ágnes Nagymember of the Board

Born on 17 March 1957in Târgu Mureº

Faculty of Economic Planning andCybernetics,

Academy of Economics,Bucharest

Nicuºor Ruiu, PhDmember of the BoardBorn on 26 August 1965in BucharestFaculty of Commerce,Academy of Economics,Bucharest

International relationships of the National Bank of Romania

114

INTERNATIONAL RELATIONSHIPS OF THE NATIONAL BANK OFROMANIA

A. Romania's participation in the international financial institutions

In 1972, Romania joined the International Monetary Fund (IMF) and the InternationalBank for Reconstruction and Development (IBRD).Since December 1993, Romania's capital subscription to the IMF and the IBRD has

amounted to SDR1 754.1 million and USD 483 million, respectively.The two international institutions opened accounts with the National Bank of Romania

for the equivalent in lei of the subscribed capital and lei-denominated foreign exchangecredits granted by the IMF; at the end of each financial year (30 April), the IMF updatesits amounts in lei deposited with the NBR, according to then-applying SDR/USD andUSD/Leu exchange rates. In compliance with Law No. 97/1997, which approves, amendsand supplements Government Ordinance No. 30/1996, starting July 1996, all claims andliabilities incumbent on the Romanian Government in respect of IMF transactions havebeen registered with NBR’s balance sheet; the NBR acts on behalf of the RomanianGovernment in relationships with the IMF, while the Ministry of Finance is in charge ofrelationships with the IBRD.In 1990, Romania joined the International Financial Corporation (IFC) and the

Multilateral Investment Guarantee Agency (MIGA) – both affiliated to the IBRD –, withsubscribed capital in amount of USD 2.6 million and USD 6 million, respectively.In 1990, Romania joined the European Bank for Reconstruction and Development

(EBRD); subscribed capital amounts to ECU 96 million, with the Ministry of Financeacting on behalf of the Government.

B. Relationships of the National Bank of Romania with other foreign banks

The NBR has been developing financial and banking relationships with a greatnumber of banks throughout the world.

The NBR has opened correspondent accounts with the following foreign banks:

Bank of England, Norges Bank,Oesterreichische Nationalbank, De Nederlandsche Bank,Banque Nationale de Belgique, Banco de Portugal,Bank of Canada, Federal Reserve Bank of New York,Danmarks Nationalbank, Banco de Espana,Schweizerische Nationalbank, Sveriges Riksbank,Suomen Pankki – Finlands Bank, Bank for International Settlements,Banque de France, Fuji Bank, Tokyo,Deutsche Bundesbank, Bank of Tokyo,Banca d’Italia, Generale Bank Brussels.The Bank of Japan,

⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯1 Since February 10, 1999 Romania's quota has increased to SDR 1,030.2 million.

Main papers issued by the NBR and forwarded to the Parliament

115

MAIN PAPERS ISSUED BY THE NATIONAL BANK OF ROMANIA ANDFORWARDED TO THE PARLIAMENT

in 1998

1. Annual Report 1997.

2. Quarterly Bulletins.

3. Monthly Bulletins.

4. Balance of Payments and International Investment

Position – Annual Report 1997.

5. Macroeconomic Indicators – Charts.

Papers published in the quarterly bulletins issued by the National Bank of Romania

116

PAPERS PUBLISHED IN THE QUARTERLY BULLETINS ISSUED BY THE NATIONAL BANK OF ROMANIA BETWEEN 1992 - 1998

1992

1 Controlling the growth in broad money

2 Development of placements and resources of commercial banks(December 1990 - March 1992)

3 Banking system and prudential banking supervision in Romania

4 Report on overdue payments of economic agents

1993

1 Exchange rate system and analysis indicators

2 Main developments of the aggregate balance sheet of commercial banks during 1992 and the first half of 1993

3 Establishment of the State Treasury Account and its impact on monetary policy

4 Arrangements between Romania and the International Monetary Fund during 1991 - 1993

1994

1 Use of reserve requirements as reflected in the monetary policy pursued by the National

2 Developments in monetary policy: performances and limitations

3 Introduction of a full-fledged inter-bank foreign exchange market – a significant event for the foreign exchange policy of the National Bank of Romania

Fifty years of monetary co-operation: Bretton Woods 1944 - 1994

4 National Bank of Romania's business surveys

1995

1 Statement of the National Bank of Romania's Governor at the press conference of April 20, 1995Monetary policy and macroeconomic stability in Romania

Papers published in the quarterly bulletins issued by the National Bank of Romania

117

2 Address delivered by the National Bank of Romania's Governor at the 115th anniversary of the establishment of the National BankAddress delivered by the National Bank of Romania's Governor on the occasion of inaugurating the Bucharest Stock ExchangePaper-based inter-bank payments multilateral netting

3 Instruments of monetary policy in Romania

4 IMF approves extension and augmentation of stand-by credit to RomaniaAddress delivered by the National Bank of Romania's Governor at the Romania's Parliament (Senate) on November 22, 1995Analysis of inter-enterprise payments arrears

1996

1 Romanian payments system

2 National Bank of Romania in international financial market

3 Development of minimum reserve requirements during March 1992 - September 1996

4 Payments Incidents Bureau (PIB)

1997

1 International investment position of RomaniaRomania's relationships with international financial bodies

2 Government securities market

3 The Romanian payments system

4 Closure of the 1997 financial year on 31 December - a breakthrough

1998

1 The Payment Incidents Bureau - One year of operation

2 Loan guarantee funds

3 New provisions on minimum reserve requirements

4 The single currency (euro) - the keystone to achieve the Economic and Monetary Union

Banks in Romania

118

BANKS IN ROMANIAat 31 December 1998

BANK HEAD OFFICE CAPITAL TYPELICENCINGDATE

I BANKS - ROMANIAN LEGAL ENTITIES

1 Banca Comercialã RomânãBucureºti, Bd. Regina Elisabeta, nr. 5,

sector 3 state-owned and domestic

private capital1990

2Banca Românã de Comerþ

Exterior (BANCOREX)Bucureºti, Calea Victoriei,

nr. 15, sector 3 state-owned and domestic

private capital1990

3 Banca AgricolãBucureºti, Str. Smârdan, nr. 3,


private capital1990

4Casa de Economii ºi

Consemnaþiuni (CEC)*Bucureºti, Calea Victoriei, nr. 13-15,

sector 1 state-owned capital 1949

5Banca Românã pentru Dezvoltare

(BRD)Bucureºti, Str. Doamnei nr. 4,


private capital1990

6 Banca Comercialã "Ion Þiriac"Bucureºti, Calea Victoriei,

nr. 15, sector 3 foreign and domestic private

capital1991

7Banca Generalã de Credit

ºi Promovare - BANKCOOPBucureºti, Str. Ion Ghica nr. 13,

sector 3 domestic private capital 1990

8 BANC POSTBucureºti, Bd. Libertãþii, nr. 18,

bl. 104, sector 5 state-owned and domestic

private capital1991

9 Banca Turco - RomânãBucureºti,

Str. Ion Câmpineanu nr. 16, sector 1state-owned and foreign

private capital1994

10Banca Internaþionalã a Religiilor

(BIR)Bucureºti, Piaþa Unirii, nr. 27,

bl. 15-16, sector 4 state-owned, and domestic and foreign private capital

1994

11 ABN AMRO Bank (Romania)Bucureºti, Bd. Expoziþiei, nr. 2,

World Trade Center, unit. 2.23, sector 1foreign private capital 1995

12Banca de Export-Import a

României (EXIMBANK)Bucureºti, Spl. Independenþei, nr. 15,

sector 5state-owned and domestic

private capital1992

13 Citibank RomaniaBucureºti, Bd. Iancu de Hunedoara,

nr. 8, sector 1foreign private capital 1996

14 Banca BucureºtiBucureºti, Piaþa Gh. Cantacuzino,

nr. 6, sector 2 foreign private capital 1994

15 Banca ColumnaBucureºti, Bd. Primãverii nr. 29,

sector 1 foreign and domestic private

capital1994

16 Banca TransilvaniaCluj-Napoca,

Bd. Eroilor, nr. 36foreign and domestic private

capital1994

17Banca de Credit Industrial ºi

Comercial Bucureºti, Str. Doamnei, nr. 17-19,

sector 3 state-owned, and domestic and foreign private capital

1993

18 Banca Comercialã "ROBANK" Bucureºti, Bd. Unirii nr. 59, sector 3 foreign and domestic private

capital1995

19 Banca Daewoo (Romania)Bucureºti, International Business Center,

Bd. Carol I, nr. 34-36, et. 1, sector 2foreign and domestic private

capital1997

20Banca pentru Micã Industrie ºi Liberã Iniþiativã MINDBANK

Bucureºti, Calea Plevnei,nr. 46-48, sector 1

foreign and domestic private capital

1990

21 Banca Româneascã Bucureºti, Bd. Unirii, nr. 35, bl. A3,

sector 3 foreign and domestic private

capital1993

22 Banca Comercialã "ALBINA"Bucureºti, Splaiul Unirii, nr. 12,

bl. B6, mezanin, sector 4foreign and domestic private

capital1996

* Re-organised as joint stock banking company pursuant to Law No. 66/1996.

Banks in Romania

119

BANK HEAD OFFICE CAPITAL TYPELICENCINGDATE

23Banca de Credit ºi Dezvoltare

ROMEXTERRATârgu Mureº, Piaþa Trandafirilor,

nr. 21state-owned and domestic

private capital1994

24 Banca de Credit PATERBucureºti, Bd. Carol I, nr. 34-36,

et. VI, sector 2 foreign and domestic private

capital1995

25 Banca Comercialã West Bank Arad, Str. Revoluþiei, nr. 88foreign and domestic private

capital1996

26Banca Românã pentru Relansare

Economicã LIBRA BANKBucureºti, Str. Cpt. av.

Al. ªerbãnescu, nr. 50, sector 1domestic private capital 1996

27 Banca Comercialã ASTRA Braºov, Str. Turnului nr. 5 domestic private capital 1996

28 Banca Comercialã "UNIREA"Bucureºti, Str. Johann Strauss,

nr. 1, sector 2domestic private capital 1996

29 DEMIRBANK (Romania)Bucureºti, Splaiul Unirii, nr. 16,

sector 4foreign and domestic private

capital1997

30International Commercial Black

Sea Bank (Romania)Bucureºti, Str. Berzei, nr. 19, sector 1

foreign private capital 1996

31 Raiffeisenbank (Romania)Bucureºti, Bd. Unirii, nr. 74, bl. J3B, aripa 2-3, sector 3

foreign private capital 1997

32 Banca "DACIA FELIX" * Cluj-Napoca,

Str. Memorandumului, nr. 28state-owned, and domestic and foreign private capital

1991

33Banca "Renaºterea Creditului Românesc" CREDIT BANK **

Bucureºti, Str. Corbeni nr. 30, sector 2

state-owned, and domestic and foreign private capital

1991

34Bank~Austria Creditanstalt

(Romania)Bucureºti, Str. Grigore Mora,

nr. 37, sector 1foreign private capital 1998

35ROMANIAN

INTERNATIONAL BANKBucureºti, Bd. Unirii, nr. 68,

bl.K2 , sector 3foreign private capital 1998

36BNP - Dresdner Bank

(Romania)Bucureºti, Str. C.A.Rosetti, nr. 36,

sector 2foreign private capital 1998

II BANKS - FOREIGN LEGAL ENTITIES

1ING Bank NV

- Bucharest Branch -Bucureºti, ªos. Kiseleff, nr. 11-13

sector 1 1994

2Société Générale

- Bucharest Branch -Bucureºti, Str. Ion Câmpineanu,

nr. 11, sector 1 1980

3Chase Manhattan Bank

- Bucharest Branch -Bucureºti, Str. Vasile Lascãr,

nr. 42-441992

4Banque Franco - Roumaine

- Bucharest Branch -Bucureºti, Piaþa Charles de Gaulle,

nr. 3-5, sector 1 1990

5MISR Romanian Bank- Bucharest Branch -

Bucureºti, Bd. Unirii, nr. 66, bl. K3,sector 3

1987

6Frankfurt Bukarest Bank AG

- Bucharest Branch -Bucureºti, Bd. Carol I, nr. 34-36,

sector 2 1979

7Banca Naþionalã a Greciei

- Bucharest Branch -Bucureºti, Splaiul Unirii, nr. 4,

bl. B3, sector 41996

8Banca Italo - Romena SpA

- Bucharest Branch -Bucureºti, Bd. Carol I, nr. 34-36

sector 2 1996

9United Garanti Bank International N.V.Amsterdam - Bucharest Branch -

Bucureºti, Str. Paris, nr. 30, sector 1

1998

* Under re-organisation in accordance with Law No. 64/1995 modified pursuant to Government Emergency Ordinance No. 58/1997. ** The license was revoked by the NBR.

Main regulations adopted in the banking and financial areas in 1998

123

MAIN REGULATIONS ADOPTED IN THE

BANKING AND FINANCIAL AREAS IN 1998

5.03.1998 Law No. 58 – Banking Act (Monitorul Oficial No. 121/23.03.1998).

17.03.1998 Protocol No.16813/19 concluded between the Ministry of Finance and theNational Bank of Romania relative to government securities (MonitorulOficial No. 153/16.04.1998).

15.04.1998 Law No. 83 – The Bank Insolvency Act (MonitorulOficial No. 159/ 22.04.1998).

26.05.1998 Law No. 101 – The National Bank of Romania Act (Monitorul OficialNo. 203/ 1.06.1998).

8.07.1998 Romania’s Parliament Decision No. 24 regarding the term of National Bankof Romania’s Board members (Monitorul Oficial No. 257/9.07.1998).

27.07.1998 Romania’s Government Decision No. 428 approving the privatisationstrategy for “Banca Românã pentru Dezvoltare” - S.A. commercialcompany (Monitorul Oficial No. 279/28.07.1998).

28.07.1998 Romania’s Government Decision No. 435 approving the privatisationstrategy for “Banc Post” - S.A. commercial company (Monitorul Oficial No.284/31.07.1998).

Romania’s Government Ordinance No.45 on vesting the National Bank ofRomania with a power to put into circulation numismatic coins made ofprecious metals (Monitorul Oficial No. 279/28.07.1998).

3.08.1998 Romania’s GovernmentOrdinance No. 48 on raising the registered capital ofbanking commercial companies majority owned by the state (MonitorulOficial No. 286/4.08.1998).

17.08.1998 Law No. 166 passing both Romania’s Government Emergency OrdinanceNo. 43/1997 on drawing up the special balance sheet of Banca Agricolã aswell as regularisation of some loans and interests classified under “loss”and Romania’s Government Emergency Ordinance No. 48/1997 onmodifying and supplementing Romania’s Government EmergencyOrdinance No. 43/1997 (Monitorul Oficial No. 304/20.08.1998).


124

26.08.1998 Romania’s Government Decision No. 92 on Romania’s accepting theProject of the 4th Amendment to the IMF’s Articles of Agreement, passedvia Resolution No.52-4 of the Governors’ Council, 23 September 1997(Monitorul Oficial No. 318/28.08.1998).

29.08.1998 Romania’s Government Ordinance No. 127 as concerns measures forhalting under-capitalisation by rectification of the 1997 balance sheetdrafted by Banca Românã de Comerþ Exterior - S.A. (Monitorul OficialNo. 328/29.08.1998).

Romania’s Government Ordinance No. 130 on regularisation of registeredcapital quotas of banks undergoing privatisation (Monitorul OficialNo. 328/29.08.1998).

7.09.1998 Romania’s Government Decision No. 572 approving the 1998 budgets ofstrategic régies autonomes under the National Bank of Romania’s authority(Monitorul Oficial No. 345/11.09.1998).

15.09.1998 Romania’s Government Decision No. 598 modifying Romania’s GovernmentDecision No. 670/1997 on setting up the privatisation commission of“Banca Românã pentru Dezvoltare” - S.A. commercial company (MonitorulOficial No. 360/23.09.1998).

29.10.1998 Romania’s Government Decision No. 776 as regards amendment ofMethodological Norms for enforcement of Law No. 83/1997 on privatisationof state-owned banks, passed by Romania’s Government DecisionNo. 458/1997 (Monitorul Oficial No. 426/11.11.1998).

15.12.1998 Romania’s Government Emergency Ordinance No. 51 regarding severalactions to be taken prior to privatisation of banks (Monitorul OficialNo. 482/15.12.1998).

16.12.1998 Romania’s Government Decision No. 50 appointing the members of theNBR Board of Directors (Monitorul Oficial No. 489/18.12.1998).

Romania’s Government Decision No. 51 appointing the members of theNBR Audit Committee (Monitorul Oficial No. 489/18.12.1998).


125

29.12.1998 Romania’s Government Emergency Ordinance No. 66 as regardsregularisation of some credits and related interests of “Banca Agricolã”S.A. consistent with provisions of Law No. 20/1996 (Monitorul OficialNo.15/30.12.1998).

Romania’s Government Emergency Ordinance No. 67 relative to financialrestructuring of “Banca Românã de Comerþ Exterior – BANCOREX” S.A. asa prerequisite for privatisation (Monitorul Oficial No. 515/30.12.1998).

30.12.1998 Law No. 250 modifying and supplementing Law. No. 66/1996 onreorganisation of “Casa de Economii ºi Consemnaþiuni” into a joint stockbank (Monitorul Oficial No. 516/30.12.1998).

Romania’s Government Decision No. 995 modifying Romania’s GovernmentDecision No. 660/1997 on establishment of the privatisation commission forthe commercial company “Banc Post” S. A. (Monitorul OficialNo. 526/31.12.1998).

Main regulations issued by the NBR in 1998

126

MAIN REGULATIONS ISSUED BY

THE NATIONAL BANK OF ROMANIA IN 1998

Monetary policy

12.01.1998 Circular No. 1: starting 1 February 1998, reserve requirements ratio, forboth lei and foreign-exchange deposits for which reserve requirements arekept in lei, shall be 12.5 percent (Monitorul Oficial No. 34/29.01.1998).

16.07.1998 Regulation No. 4 on the minimum reserve regime comprises significantchanges compared to the previous regulation, as the new provisions arelargely in line with similar regulations of the European Central Bank. Theseregulations regard the calculation base, setting up and remuneration ofreserve requirements, as well as sanctions to be applied (Monitorul OficialNo. 272/22.07.1998).

21.07.1998 Circular No. 9 sets the commissions to be charged by the National Bank ofRomania for cashless payments as of 3 August 1998 (Monitorul OficialNo. 280/29.07.1998).

Circular No. 10: starting 1 August 1998, the reserve requirements ratio is 15percent on deposits in both lei and foreign exchange; moreover,percentage quotas for calculating the minimum and the maximum onreserve requirements are 40 percent and 130 percent, respectively(Monitorul Oficial No. 280/29.07.1998).

Circular No. 11: starting 1 August 1998, the official discount rate shall be 35percent p.a. and the interest rate on lombard credit shall be 95 percent p.a.(Monitorul Oficial No. 280/29.07.1998).

31.07.1998 Circular No. 13 sets interest rates on minimum reserves paid for July –maintenance period – at 10.5 percent on reserve requirements in lei and3.5 percent on reserve requirements in US dollars (Monitorul OficialNo. 288/6.08.1998).

28.08.1998 Circular No. 15 sets interest rates paid for minimum reserve requirementsfor August – maintenance period – at 10 percent on reserve requirementsin lei and at 3.5 percent on reserve requirements in US dollars (MonitorulOficial No. 333/4.09.1998).


127

25.09.1998 Circular No. 16 sets the National Bank of Romania’s interest rates onreserve requirements for September 1998 (maintenance period), asfollows: 10 percent on reserves kept in lei and 3.3 percent on reserves keptin US dollars (Monitorul Oficial No. 379/5.10.1998).

27.10.1998 Circular No. 17 sets interest rates on reserve requirements for October1998 – maintenance period – as follows: 10 percent on reserves kept in leiand 3.3 percent on reserves kept in US dollars (Monitorul OficialNo. 413/30.10.1998).

26.11.1998 Circular No. 19 sets the interest rates paid for minimum reserverequirements relative to November – maintenance period – at 10 percentfor minimum reserves in lei and 3.3 percent for minimum reserves in USdollars (Monitorul Oficial No. 456/27.11.1998).

28.12.1998 Circular No. 24 sets the interest rates on minimum reserve requirements forDecember – maintenance period – at 10.25 percent for reserves in lei and3.3 percent for reserves in US dollars (Monitorul Oficial No.514/ 30.12.1998).

Foreign exchange policy

25.05.1998 Circular No. 7 amends and supplements Regulation No. 3/1997 on foreignexchange operations (Monitorul Oficial No. 201/29.05.1998).

29.12.1998 Circular No. 25: the introduction of the euro, the single European currency,starting 1 January 1998, entails amendments to Regulation No.3/1997 con-cerning foreign exchange operations, as follows: every reference to theECU shall be replaced by a reference to the euro (art.1, para.1.3.); thefollowing currencies shall be quoted on the forex market: USD, EUR, GBP,CHF at least; foreign exchange houses shall display the exchange rates ofthe above-mentioned currencies, as well as the exchange rates of the euro-area member currencies (Norm No.1 on forex market operation, par. 4)(Monitorul Oficial No. 514/30.12.1998).

Supervision

21.07.1998 Norms No. 4 set the minimum registered capital for banks at lei 50 billion.Newly incorporated banks, licensed after the enactment of Law No.58/1998, shall fully pay up the social capital in cash upon establishment;banks licensed prior to enforcement of the Banking Act shall raise the


128

registered capital to lei 50 billion at least by 31 December 1998. Branchesof foreign banks licensed to operate in Romania shall have paid-in capitalto the level provided for by the present norms (Monitorul OficialNo. 280/29.07.1998).

11.08.1998 Circular No. 14 provides for conditions under which Credit Bank mayperform interbank settlements: payments shall be made under the specialsettlement regime to the amount deposited in the current account with theNational Bank of Romania through the special analytic accounts (class 5)included in appendix 1, while collections shall be performed through theInterbank Multilateral Clearing House on the premises of the National Bankof Romania (Monitorul Oficial No. 298/14.08.1998).

2.10.1998 Decision No. 2 revokes the licence of the Bucharest branch of the Anglo-Romanian Bank in London, at its request. The decision takes effect upon itspublication in “Monitorul Oficial al României” (Monitorul OficialNo. 386/12.10.1998).

5.10.1998 Norms No. 6 stipulate that foreign banks shall notify the National Bank ofRomania on opening representative offices in Romania within 15 days fromthe latter's coming into operation (Monitorul Oficial No. 386/ 12.10.1998).

18.12.1998 Decision No. 3 issued by the NBR Board of Directors revoking the licenceof MISR Romanian Bank, Cairo – Constanþa branch (Monitorul OficialNo. 502/28.12.1998).

Settlement-clearing, guarantees

4.03.1998 Circular No. 4 supplements Circular No.26/1996, issued by the NationalBank of Romania, on opening of an analytic current account with theNational Bank of Romania head office for settlement of farmer vouchers byway of bilateral clearing with the State Treasury (Monitorul OficialNo.108/10.03.1998).

1.07.1998 Norms No. 3, according to which banking companies are compelled to setone-sided collateral in lei, equal to or above the one-sided collateral ceilingset by the National Bank of Romania for the final settlement of interbankmultilateral clearing operations (Monitorul Oficial No. 242/3.07.1998).


129

28.07.1998 Norms No. 5 supplementing Art. 9 of Norms No. 3/1 July 1998 issued bythe National Bank of Romania regarding the operation method in the casewhen the net debit position of an accountholder exceeds the guaranteeceiling (Monitorul Oficial No. 291/7.08.1998).

11.12.1998 Circular No. 21 refers to provisions on settlement operations through banks’current accounts and the account of State Treasury with the National Bankof Romania in order to close the 1998 financial year and implement the newchart of accounts of the National Bank of Romania, starting 1 January 1998(Monitorul Oficial No. 490/18.12.1998).

Bank accounting

23.01.1998 Order No. 15515/27 issued by the Finance Minister and the Governor of theNational Bank of Romania on approval of specifications relating to theaccounting of some operations regarding assessment of forex assets andliabilities, underwriting and payment of foreign exchange share capital,interbank transactions, commercial banks reserves and deposits with theNBR a. s .o., as well as measures with respect to the closure of the 1997financial and accounting year.

19.03.1998 Methodological Norms No. 2 specifying compilation, checking up,certifying and submission of the 1997 financial statement by commercialbanks. The Norms set up both deadlines for submitting the financialstatement and penalties for non-observance of deadlines.

20.07.1998 Order No.1524/362 issued by the finance minister and the NBR governorfor approving the patterns of financial and accounting statements for banksand the methodological norms on their drafting and use (Monitorul OficialNo. 343/10.09.1998).

20.10.1998 Norms No. 7 set forth the accounting method for credits and interestsrelated to executory contracts, as well as for some tangible and intangibleassets resulting from executory sale of debts, to be registered under “off-balance-sheet items”, class 9 (Monitorul Oficial No. 425/11.11.1998).

10.12.1998 Circular No. 20 specifies the stages for accounting operations concerningclosure of the 1998 financial year and sets forth the technical details on thenew chart of accounts of the National Bank of Romania, starting 1 January1999.


130

Fresh legal tender issues

21.04.1998 Circular No. 5 on the National Bank of Romania’s putting into circulation, asof 1 June 1998, of the lei 100,000 note and of the redesigned lei 1,000 andlei 5,000 notes (Monitorul Oficial No. 171/5.05.1998).

31.12.1998 Circular No. 26 stipulates that, during January 15 - March 31 1998, the lei1,000 and lei 5,000 notes issued during 1991- 1993 shall be withdrawnfrom circulation. Starting 31 March 1998, the aforementioned notes losetheir legal tender status (Monitorul Oficial No. 6/14.01.1998).

Numismatic issues

18.02.1998 Circular No. 3 on putting into circulation by the National Bank of Romania ofa series of three numismatic silver coins with lei 100 face value on theoccasion of the Winter Olympic Games in Nagano, as of 19th February1998, with characteristics, printed design, mintage as well as informationregarding its layout and marketing provided herein (Monitorul OficialNo. 93/27.02.1998).

1.06.1998 Circular No. 8: as of 1 June 1998, the National Bank of Romania launched anumismatic silver coin with lei 100 face value, on the occasion of Coupe duMonde – France 98; the characteristics, design, mintage, and informationon the layout and marketing of the silver coin are provided herein (MonitorulOficial No. 211/8.06.1998).

28.07.1998 Circular No. 12 refers to putting into circulation, commencing 29 July 1998,two numismatic gold coins with face value of lei 500 and lei 1,000,respectively, on the occasion of the 150th Anniversary of the 1848Romanian Revolution (Monitorul Oficial No. 291/7.08.1998).

25.11.1998 Circular No. 18 on putting into circulation, as of 1 December 1998, thenumismatic gold coin with lei 1,000 face value on the occasion of the 80thAnniversary of the Union of Transylvania with Romania (Monitorul OficialNo. 456/27.11.1998).

21.12.1998 Circular No. 22 on putting into circulation, as of 21 December 1998, of anumismatic silver coin with lei 100 face value on the occasion of the 120thAnniversary of Romania’s gaining independence (Monitorul OficialNo. 503/28.12.1998).


131

28.12.1998 Circular No. 23 on putting into circulation, as of 30 December 1998, of anumismatic silver coin with lei 100 face value in commemoration of themetropolitan bishop Andrei ªaguna who died 125 years ago (MonitorulOficial No. 514/30.12.1998).

Other

2.10.1998 Circular Letter No. 5 specifies that, starting 5 October 1998, the NationalBank of Romania branches shall purchase gold from natural entities in theform of coins only.

Charts

137

–6.9

8.9

–3.5

–6.1

6.0

24.6

–22.7

10.3

151.4

40.6

–7.3

–3.3

–7.9

23.8

6.8

5.7

1997

1998

Main Macroeconomic Indicators

Source: National Commission for Statistics, Ministry of Finance and National Bank of Romania

percent

Real GDP (annual change)

Inflation rate (Dec./Dec.)

Unemployment rate

Fiscal deficit in GDP

Direct and portfolio investment in GDP

External debt (medium- and long- term) in GDP

Net real average salary earnings

Current account balance in GDP

Annual Report 1998

138

–7.3–6.9

3.9

7.1

3.9

1.5

–8.8

–12.9

–5.6

1990 1991 1992 1993 1994 1995 1996 1997 1998

Source: National Commission for Statistics

annual percentage change

Real GDP

-8.7

-3.5

-8.0

-4.5

-1.4

-5.0

-7.3

-6.1

-7.9

1990 1991 1992 1993 1994 1995 1996 1997 1998

percent


Current Account Deficit in GDP

1.0

3.2

-4.6

-0.4

-1.9-2.6

-3.9-3.5 -3.3

1990 1991 1992 1993 1994 1995 1996 1997 1998

percent


Fiscal Deficit in GDP

Charts

139

0

10

20

30

40

50

60

70

80

1990 1991 1992 1993 1994 1995 1996 1997 1998

householdconsumption

publicconsumption

gross investment


Share of Consumption and Investment in GDPpercent

–20

–10

0

10

20

30

40

1990 1991 1992 1993 1994 1995 1996 1997 1998

net exports

exports

imports

percent


Share of Exports and Imports in GDP

16.4

23.626.4

34.838.9

45.3

54.958.1 58.3

1990 1991 1992 1993 1994 1995 1996 1997 1998

percent


Share of the Private Sector in GDP

Annual Report 1998

140

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1990 1991 1992 1993 1994 1995 1996 1997 1998

agricultural output

industrial output


Industry and Agriculture

Share of the Private Sector in Selected Economic Sectors

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1990 1991 1992 1993 1994 1995 1996 1997 1998

investment

construction


Investment and Construction

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1990 1991 1992 1993 1994 1995 1996 1997 1998

exports

imports

retail sales

services to population


Domestic and Foreign Trade

Charts

141

2,000

2,250

2,500

2,750

3,000

1995 1996 1997 1998

0

3

6

9

12

employmentin industry

unemploymentrate(right-side scale)

thousands of persons


percent

Employment* in Industry and Unemployment Rate in Economy

*) Starting December 1997, research samples were changed

–30

–20

–10

0

10

20

30

1990 1991 1992 1993 1994 1995 1996 1997 1998

–20

0

20

40

60

industrialoutput(grossseries)

real wage& salaryearningsin industry

labourproductivityper employeein industry

annual percentage change

Industrial Output, Labour Productivity and Salary Earnings


1992=100 (percentage change)

Annual Report 1998

142

net capital inflow

-12000

-10000

-8000

-6000

-4000

-2000

0

2000

4000

6000

8000

10000

12000

-2,000

0

2,000

4,000

exports fob

imports fob

trade balance

current account balance

millions of USD

Balance of Payments

net direct and portfolio investment

reserve assets (NBR)

0

500

1,000

1,500

2,000

2,500

1990 1991 1992 1993 1994 1995 1996 1997 1998

–1,000

– 500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Source: National Bank of Romania

Charts

143

–600

–400

–200

0

200

400

600

800

1,000

1,200

1992 1993 1994 1995 1996 1997 1998

trade balance

imports fob

exports fob

millions of USD; monthly data


Trade Balance

-3,000

-2,500

-2,000

-1,500

-1,000

-500

0

500

1993 1994 1995 1996 1997 1998

Current Account Balancemillions of USD; monthly data


Annual Report 1998

144

0%

20%

40%

60%

80%

100%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1990

1991

1992

1993

1994

1995

1996

1997

1998

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

food items

light industryproducts

crude oil and petroleum products

heavy industryproducts


exports fob imports cif

Commodity Composition of Foreign Trade

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%1990

1991

1992

1993

1994

1995

1996

1997

1998

1990

1991

1992

1993

1994

1995

1996

1997

1998

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

European Union

USA and other developed countries

developingcountries

countries in transition

Russian Federation

exports fob imports cif


Foreign Trade by Group of Countries

Charts

145

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1994

1995

1996

1997

1998

NBR's reserves

banks' reserves

gold

monthly

–1,000

– 500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

millions of USD (end of period)


annual

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

annualmillions of USD (end of period)


Gross International Reserves

Net International Reserves

–1,000

– 500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1994

1995

1996

1997

1998

NIR

net convertiblecurrencies

gold

monthly

Annual Report 1998

146

0.6

4.0

12.7 12.7

15.3 15.5

20.4

24.6 23.8

1990 1991 1992 1993 1994 1995 1996 1997 1998

percent

Source: National Commission for Statistics, National Bank of Romania

Share of MLT External Debt in GDP

0.84.1

14.7 13.515.2

18.516.5

25.9

36.3

1990 1991 1992 1993 1994 1995 1996 1997 1998

percent


Share of External Debt Service in Exports of Goods and Services

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1990 1991 1992 1993 1994 1995 1996 1997 1998

external debt(medium &long-term)

debt service (includingshort-term debt)



External Debt and External Debt Service

Charts

147

0

25

50

75

100

1991 1992 1993 1994 1995 1996 1997 1998

1

10

100

1,000

10,000

quarterlychange

annualised monthlychange(right-side scale)

change on a year earlier(right-side scale)

percent; logarithmic scalepercent


Consumer Prices

100

200

300

400

500

1992 1993 1994 1995 1996 1997 1998

100

200

300

400

500

total

food items

non-food items

services

indices; previous Dec.=100


100

150

200

250

300

350

400

1990 1991 1992 1993 1994 1995 1996 1997 1998

CPI (average)

PPI (average)

GDP deflator

annual indices


Prices in Economy

Annual Report 1998

148

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,0001990

1991

1992

1993

1994

1995

1996

1997

1998

1990

1991

1992

1993

1994

1995

1996

1997

1998

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


time and restricteddeposits

household savings

demand deposits

currency outsidebanks

billions of lei; end of period


Broad Money (Annual Data)

100

150

200

250

300

350

400

1990 1991 1992 1993 1994 1995 1996 1997 1998

GDP deflator

M2 (average)

M2 (end of period)

annual indices


Broad Money and GDP Deflator

0

1

2

3

4

5

6

7

8

1990 1991 1992 1993 1994 1995 1996 1997 1998

velocity of M2(average)

velocity of M2(end of period)


times

Money Velocity

Charts

149

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

1994 1995 1996 1997 1998

foreign exchange deposits

time and restricted deposits

household savings

demand deposits

currency outside banks

billions of lei; end of period


Broad Money (Monthly Data)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1994 1995 1996 1997 1998

0

400

800

1,200

1,600

2,000

2,400

2,800

1994 1995 1996 1997 1998

0

400

800

1,200

1,600

2,000

2,400

2,800

time deposits

demand deposits

householddeposits

corporatedeposits



Foreign Exchange Deposits


Annual Report 1998

150

100

400

700

1,000

1,300

1,600

1,900

2,200

1994 1995 1996 1997 1998

consumerprices

industrialproducer prices

broad money(M2)

indices; December 1993=100

Source: National Commission for Statistics, National Bank of

Prices and Broad Money

100

200

300

400

500

1994 1995 1996 1997 1998

consumerprices

currencyoutside banks

broad money(M2)


indices; compared to the same period of previous year

Source: National Commission for Statistics, National Bank of

Broad Money and Consumer Prices

Charts

151

0

1

2

3

4

5

6

7

1992 1993 1994 1995 1996 1997 1998

multiplierfor M2

multiplierfor M1


Average Reserve Money Multipliers

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

1992 1993 1994 1995 1996 1997 1998

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

currencyoutside banks

vault cash

banks' reserveswith NBR

refinancingcredits

Treasury accountbalance

billions of lei; daily average


Reserve Money, Refinancing and Treasury Account Balance

Annual Report 1998

152

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

1992 1993 1994 1995 1996 1997 1998

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

credit granted with derogation from regulations lombard

special auction

preferential structural

billions of lei; daily average


Refinancing Credits

Charts

153

0

100

200

300

400

500

600

1991 1992 1993 1994 1995 1996 1997 1998

average rate

structural

auction

lombard

percent per annum


Main Interest Rates on Refinancing Credits

0

20

40

60

80

100

120

140

160

1991 1992 1993 1994 1995 1996 1997 1998

lending rate (NBR)

lending rate (banks)

deposit rate (banks)

percent per annum


Interest Rates Applied within the Banking System

Annual Report 1998

154

0

400

800

1,200

1,600

2,000

2,400

1996 1997 1998

0

80

160

240

320

400

daily averagetransactions volume

average interest rate(right-side scale)

billions of lei percent per annum

Interbank Money Market (Monthly Data)

0

1,600

3,200

4,800

6,400

8,000

9,600

1996 1997 1998

0

50

100

150

200

250

300

daily average interbankdeposits

average interest rate(right-side scale)

billions of lei


percent per annum

Charts

155

0

1,000

2,000

3,000

4,000

5,000

6,000

1.1.97

1.2.97

1.3.97

1.4.97

1.5.97

1.6.97

1.7.97

1.8.97

1.9.97

1.10

.97

1.11

.97

1.12

.97

1.1.98

1.2.98

1.3.98

1.4.98

1.5.98

1.6.98

1.7.98

1 .8.98

1.9.98

1.10

.98

1.11

.98

1.12

.98

0

100

200

300

400

500

600

daily average transactions volume

average interest rate (right-side scale)


Interbank Money Market (Daily Data)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1.1.97

1.2.97

1.3.97

1.4.97

1.5.97

1.6.97

1.7.97

1.8.97

1.9.97

1.10

.97

1.11

.97

1.12

.97

1.1.98

1.2.98

1.3.98

1.4.98

1.5.98

1.6.98

1.7.98

1.8.98

1.9.98

1.10

.98

1.11

.98

1.12

.98

0

50

100

150

200

250

300

350

400

daily average interbank deposits

average interest rate (right-side scale)


0

50

100

150

200

250

300

350

1.1.97

1.2.97

1.3.97

1.4.97

1.5.97

1.6.97

1.7.97

1.8.97

1.9.97

1.10

.97

1.11

.97

1.12

.97

1.1.98

1.2.98

1.3.98

1.4.98

1.5.98

1.6.98

1.7.98

1 .8.98

1.9.98

1.10

.98

1.11

.98

1.12

.98

BUBOR (1 week)

BUBID (1 week)

percent per annum


Annual Report 1998

156

0

50

100

150

200

250

300

1993 1994 1995 1996 1997 1998

inflation rate(CPI based)

averageexchange rate(ROL/USD)

Inflation and Exchange Rate

percent change; previous Dec.=100


–80

–40

0

40

80

120

160

200

240

1.1.97

1.2.97

1.3.97

1.4.97

1.5.97

1.6.97

1.7.97

1.8.97

1.9.97

1.10

.97

1.11

.97

1.12

.97

1.1.98

1.2.98

1.3.98

1.4.98

1.5.98

1.6.98

1.7.98

1.8.98

1.9.98

1.10

.98

1.11

.98

1.12

.98

daily volume (total)NBR's purchases, netinterbank operations

Foreign Exchange Market Operations

millions of USD

Interbank Forex Market (Daily Data)

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

1.1.97

1.2.97

1.3.97

1.4.97

1.5.97

1.6.97

1.7.97

1.8.97

1.9.97

1.10

.97

1.11

.97

1.12

.97

1.1.98

1.2.98

1.3.98

1.4.98

1.5.98

1.6.98

1.7.98

1.8.98

1.9.98

1.10

.98

1.11

.98

1.12

.98

Average Exchange Rate

lei/US dollar


Charts

157

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1.1.97

1.2.97

1.3.97

1.4.97

1.5.97

1.6.97

1.7.97

1.8.97

1.9.97

1.10

.97

1.11

.97

1.12

.97

1.1.98

1.2.98

1.3.98

1.4.98

1.5.98

1.6.98

1.7.98

1.8.98

1.9.98

1.10

.98

1.11

.98

1.12

.98

0

10

20

30

40

50

60

70

number of transactions

turnover

billions of leinumber

Bucharest Stock Exchange

0

5

10

15

20

25

1.1.97

1.2.97

1.3.97

1.4.97

1.5.97

1.6.97

1.7.97

1.8.97

1.9.97

1.10

.97

1.11

.97

1.12

.97

1.1.98

1.2.98

1.3.98

1.4.98

1.5.98

1.6.98

1.7.98

1 .8.98

1.9.98

1.10

.98

1.11

.98

1.12

.98

0

2,000

4,000

6,000

8,000

10,000

shares traded

market capitalisation

number (millions) billions of lei

0

200

400

600

800

1,000

1,200

1.9.97

1.10

.97

1.11

.97

1.12

.97

1.1.98

1.2.98

1.3.98

1.4.98

1.5.98

1.6.98

1.7.98

1.8.98

1.9.98

1.10

.98

1.11

.98

1.12

.98

BET-C index (lei)

BET index (lei)

points

Source: Bucharest Stock Exchange

Annual Report 1998

158

0

5

10

15

20

25

30

35

40

45

50

1992 1993 1994 1995 1996 1997 1998 1992 1993 1994 1995 1996 1997 1998

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

state-owned capital majority state-owned capital

domestic private capital foreign private capital

domestic & foreign private capital state-owned & domestic private capital

state-owned & private (domestic & foreign) capital state-owned & foreign private capital

foreign banks branches

number; end of period

Composition of Banks by Ownership


share in total consolidated balance sheet

Charts

159

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%1993

1994

1995

1996

1997

1998

1993

1994

1995

1996

1997

1998

revenues (left-hand side)

profit tax

wage tax

VAT, excises, turnover tax

others

expenditures (right-hand side)

social-cultural

defence, public order

economic activities

transfers

interests related to public debt and other

others


Revenues and Expenditures of Government Budget

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1993

1994

1995

1996

1997

1998

1993

1994

1995

1996

1997

1998

revenues (left-hand side)

taxes and duties from population

other direct taxes

subsidies from the government budget

amounts deducted from wage tax

others

expenditures (right-hand side)

social-cultural

municipal services and dwellings

executive bodies

economic activities

others


Revenues and Expenditures of Local Budgets

Methodological specifications Annual Report 1998

4*

METHODOLOGICAL SPECIFICATIONS

Annexes 2b, 4 Starting January 1998, the scope, research samples and aggregation weightsused in establishing selected statistical indicators were updated. Monthly data arestill provisional and will be updated on a yearly basis, namely economic indicatorswill be based on company structural surveys and social indicators on specificyearly surveys. In order to ensure indicator comparability, the data series will beupdated after the recalculation of data published by the National Commission forStatistics.

Annex 2b Simple chronological means are calculated as follows:

Example: simple chronological mean for one year:

[1

12[1

2 (December of previous year + December of current year) + (January +... +

November)]

Annex 8a According to the international standard definition, Romania’s internationalinvestment position includes the stock of foreign assets and liabilities at the endof the reported period. Differences between foreign assets and foreign liabilitiesat the beginning and end of period, respectively, which do not result from foreigntransactions but from changes in the exchange rate, world prices or otherchanges are recorded in the table on international investment position only.

Annex 12 The BET (Bucharest Exchange Trading) index is the BSE’s first official index,reflecting the overall trend in prices of the 10 most liquid shares traded at thebourse. It is calculated as a weighted (capitalised) average of the securities thatmake up the index portfolio. Shares shall be listed on the BSE’s first tier and shallhave the largest market capitalisation (more than 60 percent of the total stockmarket shall be accounted for by shares in the BET basket).

The composite index of the Bucharest Stock Exchange (BET-C) reflects pricemovements of all shares traded at the Bucharest bourse. The calculation methodof the BET-C is similar to that of the BET index. The BET-C basket shallautomatically include newly listed companies from the day next to setting themarket price. At the same time, the BET-C also reflects the changes in sharecapital of listed companies.

Annex 13a Monthly volume of forex transactions represents the sum of the highest dailylevels of sales and purchases in the forex market.

Annual average volume of forex transactions is calculated as an arithmetic meanof monthly forex transactions during the year.

Annex 14 Interbank assets cover refinancing credits to banking companies, StateTreasury's placements with banks and forex deposits with banks.

1

No. of months - 1 [1

2 (value of indicator recorded in the month prior to the period

under review + value of indicator recorded in the last month ofthe period under review) + value of indicator recorded in theother months of the period under review]

Annual Report 1998 Methodological specifications

5*

Interbank liabilities include commercial banks' lei and forex deposits with thecentral bank and the State Treasury accounts balance (receipts and paymentsaccounts relative to state budget, local budgets, social security budget and extra-budgetary funds with commercial banks as operations performed through theGeneral Account of Treasury). Starting December 1996, interbank liabilitiesinclude commercial banks’ reserves only.

Other bank deposits relate to lei and forex deposits of banks held prior to cominginto operation.

Other assets / liabilities include items (accounts) relative to the central bank's ownactivity (assets – fixed assets, debtors, projected expenses, etc.; liabilities –settlements, creditors, etc.).

Until December 1995, the item "Other assets" included profit payments while"Other liabilities" included gross profit. At present, the net profit is included underthe heading "Capital accounts (own funds)".

Beginning with December 1994, the item "Other liabilities" also encompasses theamount derived from the difference between "Purchases of SDRs from the IMF"calculated in terms of the exchange rate leu/SDR in force on the last day of theperiod and the same item calculated in terms of the accounting exchange rateleu/SDR annually established on April 30.

Annexes 8a,14,16,17 Monetary gold represents the central bank's holdings of gold and it is part ofinternational reserves. The National Bank of Romania's stock of monetary gold isvalued in US dollars at the price on the London Bullion Market on the last day ofthe month. Until February 1996 and during December 1996 - February 1997, thestock of gold was valued in lei (national currency) at a sole domestic price; thelatter was applied when recording gold inflows and outflows. During February1996 - November 1996 and starting March 1997, price changes affect currentinflows and outflows only. The stock of gold is not revalued.

Annexes 14,16 General Account of Treasury includes receipts and payments accounts related tothe state budget, local budgets, social security budget and extrabudgetary fundswith commercial banks.

Annex 16 Net foreign assets of banks are calculated by subtracting foreign liabilities inconvertible currency from foreign assets in convertible currency (reserve assetsplus equity interests in foreign banks).

Reserve foreign assets include the following items:

� monetary gold (the monetary gold stock of the NBR is valued in US dollar atLondon market price on the last day of the month);

� SDR holdings;

� convertible currencies, which cover the following elements: foreign currencyand cheques, banks’ deposits abroad, foreign securities, and others.

Annex 24c Solvency ratio represents the ratio between banks’ own funds (own capital plusadditional capital) and risk-weighted assets plus other risk-weighted off balancesheet items.

Annual Report 1998 Statistical Section

1. GROSS DOMESTIC PRODUCT

Period GDP formation TOTAL Industry Construction Agriculture Transport Trade, Immovable Financial Public Adjustment Other

and and tourism, dealings, and admini- for imputed 1)forestry telecom- hotels and health, banking stration output

munication restaurants education services of bankingand other servicesservices

billions of lei (in current prices)

1985 817.4 376.1 55.1 122.1 54.0 48.1 68.8 19.7 20.3 –25.6 78.8

1986 838.6 396.4 57.1 115.5 56.0 47.4 69.1 17.3 18.5 –22.7 84.0

1987 845.2 398.4 58.4 113.6 67.8 53.1 69.4 18.8 19.3 –29.3 75.7

1988 857.0 403.8 56.9 122.4 65.8 54.5 70.5 16.9 19.0 –22.8 70.0

1989 800.0 369.3 43.9 115.2 53.8 46.0 67.6 16.7 20.2 –11.6 78.9

1990 857.9 347.6 46.0 187.1 49.4 53.2 77.6 23.2 23.9 –19.9 69.7

1991 2,203.9 834.6 96.1 415.9 147.1 296.5 197.1 57.9 68.1 –47.2 137.8

1992 6,029.2 2,311.0 290.1 1,147.9 514.3 859.5 547.9 322.2 203.3 –281.0 114.0

1993 20,035.7 6,781.4 1,040.0 4,205.8 2,014.6 2,057.7 1,692.9 1,014.5 620.2 –847.9 1,456.5

1994 49,773.2 18,018.3 3,251.3 9,897.6 4,354.0 4,075.8 4,361.6 2,375.7 1,611.1 –1,990.7 3,818.6

1995 72,135.5 23,711.3 4,755.1 14,269.2 5,576.6 7,570.2 6,611.2 3,588.1 2,691.9 –2,175.0 5,536.9

1996 108,919.6 36,181.5 7,067.5 20,949.1 9,804.7 12,722.3 10,753.5 3,243.1 3,355.2 –2,222.3 7,065.0

1997 a) 250,480.2 88,997.4 13,155.8 45,349.6 25,468.4 24,814.1 22,570.4 3,357.4 6,986.1 –1,253.9 21,034.9

1998 b) 338,670.0 107,305.6 17,496.6 54,077.1 35,254.3 40,865.9 34,233.3 4,196.8 13,499.9 –1,567.4 33,307.9

composition (%)

1985 100.0 46.0 6.7 14.9 6.6 5.9 8.5 2.4 2.5 –3.1 9.6

1986 100.0 47.3 6.8 13.8 6.6 5.7 8.2 2.1 2.2 –2.7 10.0

1987 100.0 47.1 6.9 13.5 8.0 6.3 8.2 2.2 2.3 –3.5 9.0

1988 100.0 47.1 6.6 14.3 7.6 6.4 8.2 2.0 2.2 –2.7 8.2

1989 100.0 46.2 5.5 14.4 6.7 5.8 8.4 2.1 2.5 –1.4 9.9

1990 100.0 40.5 5.4 21.8 5.8 6.2 9.0 2.7 2.8 –2.3 8.1

1991 100.0 37.9 4.4 18.9 6.7 13.5 8.9 2.6 3.1 –2.1 6.3

1992 100.0 38.3 4.8 19.0 8.5 14.3 9.1 5.3 3.4 –4.7 1.9

1993 100.0 33.8 5.2 21.0 10.1 10.3 8.4 5.1 3.1 –4.2 7.3

1994 100.0 36.2 6.5 19.9 8.7 8.2 8.8 4.8 3.2 –4.0 7.7

1995 100.0 32.9 6.6 19.8 7.7 10.5 9.2 5.0 3.7 –3.0 7.7

1996 100.0 33.2 6.5 19.2 9.0 11.7 9.9 3.0 3.1 –2.0 6.5

1997 a) 100.0 35.5 5.3 18.1 10.2 9.9 8.9 1.3 2.8 –0.5 8.4

1998 b) 100.0 31.7 5.2 16.0 10.4 12.1 9.9 1.2 4.0 –0.5 9.8

annual change (%)

1985 –0.1 2.8 4.7 –0.5 1.9 7.1 1.5 –5.7 3.0 –5.4 –22.0

1986 2.4 4.9 3.8 –5.3 2.2 –1.3 0.8 –1.4 –9.0 –3.4 6.5

1987 0.8 6.2 1.2 –4.4 4.0 12.0 0.6 73.3 4.7 83.1 –19.3

1988 –0.5 1.0 –2.6 5.5 –1.8 2.5 1.4 –11.2 –1.9 –17.7 –22.2

1989 –5.8 –8.4 –19.9 –6.8 –3.8 –7.6 –1.7 –50.9 3.7 –39.1 15.5

1990 –5.6 –16.7 1.1 37.3 –21.4 9.3 8.5 17.3 14.0 28.8 –34.7

1991 –12.9 –12.8 –19.4 –12.3 –8.8 –25.6 3.4 –0.3 –8.0 –5.7 –26.0

1992 –8.8 –13.7 –5.6 –12.9 –4.0 –9.1 7.4 39.7 10.8 50.8 –5.7

1993 1.5 1.0 24.7 13.6 2.8 –9.1 0.6 0.5 1.9 0.5 –89.8

1994 3.9 3.4 27.4 2.9 0.8 –0.9 5.4 1.7 9.7 1.7 –0.2

1995 7.1 5.6 6.7 4.6 1.7 21.8 7.1 1.4 4.4 –2.9 11.6

1996 3.9 6.9 0.8 –4.2 6.4 12.5 12.5 –14.2 –7.1 –5.3 4.4

1997 a) –6.9 –5.9 –20.3 –1.3 –9.5 –13.8 –9.9 –39.6 –10.2 –53.7 7.6

1998 b) –7.3 –10.5 –11.5 –8.3 –12.3 0.3 –6.9 –17.9 –0.8 –12.9 6.4

Source: National Commission for Statistics.1) Net taxes on products and customs duties; a) Semi-final data; b) Estimates.

6*


1. GROSS DOMESTIC PRODUCT

Period Use of GDP TOTAL Gross fixed Change Final consumption Exports, Statistic

capital in stocks Total Households General Private non-profit net differencesformation government institutions

servinghouseholds

billions of lei (in current prices)

1985 817.4 246.3 23.6 491.9 408.4 83.5 – 33.2 22.4

1986 838.6 249.0 39.4 497.2 416.7 80.5 – 35.5 17.5

1987 845.2 245.5 23.5 516.8 441.9 74.9 – 52.8 6.6

1988 857.0 240.2 3.1 532.3 454.7 77.6 – 80.1 1.3

1989 800.0 238.9 –24.6 563.9 463.4 93.2 7.3 21.8 0.1

1990 857.9 169.8 89.7 679.5 557.7 114.3 7.5 –81.1 –0.0

1991 2,203.9 317.0 301.1 1,672.5 1,323.7 333.9 14.9 –86.7 0.0

1992 6,029.2 1,156.9 736.7 4,642.5 3,750.8 861.1 30.6 –506.9 –

1993 20,035.7 3,583.7 2,212.2 15,235.8 12,670.3 2,473.2 92.3 –996.0 –

1994 49,773.2 10,095.7 2,252.6 38,452.4 31,442.0 6,851.8 158.6 –1,027.5 –

1995 72,135.5 15,424.9 2,085.1 58,662.4 48,545.1 9,877.0 240.3 –4,036.9 –

1996 108,919.6 24,998.5 3,161.4 89,939.4 75,288.8 14,273.9 376.7 –9,179.7 –

1997 a) 250,480.2 55,074.2 –501.3 213,772.8 188,416.2 24,291.9 1,064.7 –17,865.5 –

1998 b) 338,670.0 61,209.8 –1,350.9 307,536.0 255,886.2 49,786.7 1,863.1 –28,724.9 –

composition (%)

1985 100.0 30.1 2.9 60.2 50.0 10.2 – 4.1 2.7

1986 100.0 29.7 4.7 59.3 49.7 9.6 – 4.2 2.1

1987 100.0 29.0 2.8 61.2 52.3 8.9 – 6.2 0.8

1988 100.0 28.0 0.4 62.1 53.1 9.1 – 9.4 0.1

1989 100.0 29.9 –3.1 70.5 57.9 11.6 0.9 2.7 0.0

1990 100.0 19.8 10.5 79.2 65.0 13.3 0.9 –9.5 –0.0

1991 100.0 14.4 13.6 75.9 60.1 15.1 0.7 –3.9 0.1

1992 100.0 19.2 12.2 77.0 62.2 14.3 0.5 –8.4 –

1993 100.0 17.9 11.1 76.0 63.2 12.3 0.5 –5.0 –0.1

1994 100.0 20.3 4.5 77.3 63.2 13.8 0.3 –2.1 –

1995 100.0 21.4 2.9 81.3 67.3 13.7 0.3 –5.6 –

1996 100.0 23.0 2.9 82.6 69.1 13.1 0.3 –8.4 –

1997 a) 100.0 22.0 –0.2 85.3 75.2 9.7 0.4 –7.1 –

1998 b) 100.0 18.1 –0.4 90.8 75.6 14.7 0.6 –8.5 –

annual change (%)

1985 –0.1 1.7 –30.2 –0.7 –1.7 4.7 – 5.9 49.4

1986 2.4 1.1 68.6 0.5 1.3 –3.6 – 2.0 –11.9

1987 0.8 –1.4 –39.2 3.4 5.4 –6.9 – 63.7 –77.1

1988 –0.5 –2.1 –85.2 2.1 1.9 3.5 – 52.1 –

1989 –5.8 –1.6 x 1.4 0.6 6.0 x –36.8 –

1990 –5.6 –35.6 x 8.9 8.1 14.1 –3.7 x –

1991 –12.9 –31.6 –19.9 –11.8 –16.2 10.6 –25.1 –50.3 –

1992 –8.8 11.0 –36.6 –5.6 –7.5 2.2 –6.4 28.2 –

1993 1.5 8.3 –20.7 1.2 0.9 2.7 5.0 –17.9 –

1994 3.9 20.7 –56.6 3.8 2.6 11.0 –29.9 –72.3 –

1995 7.1 6.9 –53.7 10.8 13.0 1.0 3.0 8.2 –

1996 3.9 5.7 –21.1 7.0 8.0 1.5 20.3 41.6 –

1997 a) –6.9 –3.0 x –4.3 –3.0 –11.6 10.0 –4.7 –

1998 b) –7.3 –18.1 – –3.7 –6.0 14.1 – –17.3 –

7*

Annual Report 1998 Statistical SectionStatistical Section

2a. MAIN MACROECONOMIC INDICATORS (annual data)

I N D I C A T O R S M.U. 1985 1986 1987 1988 1989 1990 1991

1. Gross domestic product bill.lei 817.4 838.6 845.2 857.0 800.0 857.9 2,203.9

1.1. Annual rate % –0.1 2.4 0.8 –0.5 –5.8 –5.6 –12.9

1.2. GDP deflator % annual 100.3 100.2 100.0 101.9 99.1 113.6 295.1

1.3. GDP/capita thou.lei/pers. 36.0 36.7 36.8 37.2 34.6 37.0 95.1

2. Final consumption bill.lei 491.9 497.2 516.8 532.3 563.9 679.5 1,672.5

2.1. Annual rate % –0.7 0.5 3.4 2.1 1.4 8.9 –11.8

2.2. Share in GDP % 60.2 59.3 61.1 62.1 70.5 79.2 75.9

3. Gross fixed capital formation bill.lei 246.3 249.0 245.5 240.2 238.9 169.8 317.0

3.1. Annual rate % 1.7 1.1 –1.4 –2.1 –1.6 –35.6 –31.6

3.2. Share in GDP % 30.1 29.7 29.0 28.0 29.9 19.8 14.4

4. Industrial output 1) % –0.3 2.2 –2.3 –0.7 –5.3 –23.7 –22.8

4.1. Industrial producer prices 1) % –1.1 – –1.0 – – 26.9 220.1

4.2. Labour productivity per employee1) % –2.0 0.2 –3.0 –1.1 –7.4 –10.8 –15.0

5. Agricultural output 1) % 0.8 –5.5 –9.3 6.2 –5.1 –2.9 0.8

6. Domestic trade

6.1. Retail sales 1) % ... 2.9 2.5 –0.3 –1.4 17.2 –25.5

share of private sector % x x x x x 0.8 21.7

6.2. Commercial services delivered to population 1) % ... ... ... ... ... 0.8 –37.0

share of private sector % x x x x x 3.9 20.1

7. Foreign trade

7.1. Exports fob, total mill.USD 10,174.4 9,763.1 10,491.8 11,392.5 10,487.4 5,775.4 4,265.7

7.2. Imports fob, total mill.USD 8,402.4 8,084.1 8,312.7 7,642.6 8,437.7 9,202.5 5,372.0

7.3. Balance mill.USD +1,772.0 +1,679.0 +2,179.1 +3,749.9 +2,049.7 –3,427.1 –1,106.3

7.4. Coverage of imports through exports % 121.1 120.8 126.2 149.1 124.3 62.8 79.4

8. Current account balance mill.USD 1,381.0 1,395.0 2,043.0 3,922.0 2,514.0 –3,337.0 –1,012.0

9. Foreign debt mill.USD 6,830 6,875 6,272 2,106 174 230 1,143

10. Net average nominal wage and salary earnings 1) % ... 1.0 0.6 2.6 4.0 10.5 120.6

10.1. Net average real wage and salary earnings 1) % ... –0.0 –0.3 0.4 2.8 5.1 –18.3

11. Inflation rate

11.1. Average 2) % 0.8 1.0 0.9 2.2 1.1 5.1 170.2

11.2. End of period 3) % ... ... ... ... 1.1 37.7 222.8

Source: National Commission for Statistics, Companies House, Ministry of Finance, and National Bank of Romania.1) Annual change; 2) Average level of current year compared to the average level of previous year; 3) December on DecemberData on national accounts are semi-final (a), estimations (b);

8*

Annual Report 1998 Statistical SectionStatistical Section


1992 1993 1994 1995 1996 1997 a) 1998 b) M.U. I N D I C A T O R S

6,029.2 20,035.7 49,773.2 72,135.5 108,919.6 250,480.2 338,670.0 bill.lei 1. Gross domestic product

–8.8 1.5 3.9 7.1 3.9 –6.9 –7.3 % 1.1. Annual rate

300.0 327.4 239.1 135.3 145.3 247.0 145.9 % annual 1.2. GDP deflator

264.6 880.5 2,189.7 3,180.4 4,817.8 11,109.8 15,050.1 thou.lei/pers. 1.3. GDP/capita

4,642.5 15,235.8 38,452.4 58,662.4 89,939.4 213,772.8 307,536.0 bill.lei 2. Final consumption

–5.6 1.2 3.8 10.8 7.0 –4.3 –3.7 % 2.1. Annual rate

77.0 76.0 77.3 81.3 82.6 85.3 90.8 % 2.2. Share in GDP

1,156.9 3,583.7 10,095.7 15,424.9 24,998.5 55,074.2 61,209.8 bill.lei 3. Gross fixed capital formation

11.0 8.3 20.7 6.9 5.7 –3.0 –18.1 % 3.1. Annual rate

19.2 17.9 20.3 21.4 23.0 22.0 18.1 % 3.2. Share in GDP

–21.9 1.3 3.3 9.4 6.3 –7.2 –17.0 % 4. Industrial output 1)

184.8 165.0 140.5 35.1 49.9 156.6 33.2 % 4.1. Industrial producer prices 1)

–13.4 9.0 14.7 13.7 7.5 –1.8 –6.2 % 4.2. Labour productivity per employee1)

–13.3 12.9 0.2 4.5 1.3 3.4 –7.6 % 5. Agricultural output 1)

6. Domestic trade

–17.3 –7.6 8.5 29.0 15.3 –12.1 4.1 % 6.1. Retail sales 1)

45.8 65.0 71.1 74.3 76.7 81.9 90.6 % share of private sector

–15.6 –41.2 20.8 20.1 7.7 –17.4 –20.2 % 6.2. Commercial services delivered to population 1)

35.4 42.6 54.0 58.4 59.8 62.9 54.2 % share of private sector

7. Foreign trade

4,363.4 4,892.2 6,151.3 7,910.0 8,084.5 8,431.3 8,300.0 mill.USD 7.1. Exports fob, total

5,784.1 6,020.1 6,562.4 9,487.0 10,555.0 10,411.4 10,911.0 mill.USD 7.2. Imports fob, total

–1,420.7 –1,127.9 –411.1 –1,577.0 –2,470.5 –1,980.1 –2,611.0 mill.USD 7.3. Balance

75.4 81.3 93.7 83.4 76.6 81.0 76.1 % 7.4. Coverage of imports through exports

–1,564.0 –1,174.0 –428.0 –1,774.0 –2,571.0 –2,137.0 –3,010.0 mill.USD 8. Current account balance

2,479 3,357 4,597 5,482 7,209 8,584 9,081 mill.USD 9. Foreign debt

170.0 196.5 137.7 48.9 51.9 96.8 69.9 % 10. Net average nominal wage and salary earnings 1)

–13.0 –16.7 0.4 12.6 9.5 –22.7 6.8 % 10.1. Net average real wage and salary earnings 1)

11. Inflation rate

210.4 256.1 136.7 32.3 38.8 154.8 59.1 % 11.1. Average 2)

199.2 295.5 61.7 27.8 56.9 151.4 40.6 % 11.2. End of period 3)

9*



I N D I C A T O R S M.U. 1985 1986 1987 1988 1989 1990 1991

12. Government budget

– revenues bill.lei 300.1 333.7 334.6 331.0 348.5 212.7 496.8

– expenditures bill.lei 282.0 302.9 281.4 286.7 288.4 210.2 537.9

– deficit (–)/surplus (+) bill.lei +18.1 +30.8 +53.2 +44.3 +60.1 +2.5 –41.1

12.1. Percentage of government budget balance in GDP % 2.2 3.7 6.3 5.2 7.5 0.3 –1.9

13. Companies

13.1. Commercial companies number x x x x x x 83,709

13.1.1. state–owned capital number x x x x x x 7,432

13.1.2. private capital number x x x x x x 76,277

13.2. Foreign investors number x x x x x x 6,182

– foreign exchange capital mill.USD x x x x x x 537.9

14. Average reference interest rate of the NBR %/year x x x x x 3.0 18.0

15. Broad money

– end of period bill.lei 318.8 344.0 359.2 395.9 420.9 514.4 1,033.3

– average (for velocity) bill.lei 318.8 331.4 351.6 377.6 408.4 478.0 603.5

15.1. Velocity

– end of period times/year 2.56 2.44 2.35 2.16 1.90 1.67 2.13

– average times/year 2.56 2.53 2.40 2.27 1.96 1.79 3.65

16. Exchange rate

16.1. annual average lei/USD 17.14 16.15 14.56 14.28 14.92 22.43 76.39

16.2. end of period lei/USD 15.73 15.28 13.74 14.37 14.44 34.71 189.00

17. Population thou.pers. 22,724.8 22,823.5 22,940.4 23,053.6 23,151.6 23,206.7 23,185.1

18. Employment, total, of which: 4) thou.pers. 10,586.1 10,669.5 10,718.6 10,805.4 10,945.7 10,839.5 10,785.8

– employees thou.pers. 7,689.3 7,746.3 7,772.9 7,876.7 8,323.0 8,142.2 7,483.5

– private sector thou.pers. x x x x x 53.9 318.5

19. Unemployment 4) thou.pers. x x x x x x 337.4

19.1. unemployment rate 4) % x x x x x x 3.0

Source: National Commission for Statistics, Companies House, Ministry of Finance, and National Bank of Romania.

4) End of period.

10*



1992 1993 1994 1995 1996 1997 1998 M.U. I N D I C A T O R S

12. Government budget

1,363.9 3,792.4 8,860.2 12,888.3 18,372.8 43,834.5 67,215.5 bill.lei – revenues

1,627.0 4,313.6 10,930.4 15,858.0 23,732.0 52,896.6 77,616.6 bill.lei – expenditures

–263.1 –521.2 –2,070.2 –2,969.7 –5,359.2 –9,062.1 –10,401.0 bill.lei – deficit (–)/surplus (+)

–4.4 –2.6 –4.2 –4.1 –4.9 –3.6 –3.1 % 12.1. Percentage of government budget balance in GDP

13. Companies

174,787 317,192 428,619 487,952 548,873 670,850 … number 13.1. Commercial companies

7,885 8,397 6,963 6,515 4,815 3,180 … number 13.1.1. state–owned capital

199,902 308,795 421,676 482,809 536,648 582,411 … number 13.1.2. private capital

18,872 29,392 40,941 44,638 48,557 54,198 63,255 number 13.2. Foreign investors

896.3 1,264.6 2,261.8 2,562.5 3,139.3 3,464.2 3,648.5 mill.USD – foreign exchange capital

50.5 70.0 65.3 39.6 35.0 47.2 38.0 %/year 14. Average reference interest rate of the NBR

15. Broad money

1,856.1 4,472.4 10,648.7 18,278.1 30,334.6 62,145.3 92,529.9 bill.lei – end of period

1,209.6 2,764.4 6,652.2 13,107.7 22,219.5 45,116.1 70,212.3 bill.lei – average (for velocity)

15.1. Velocity

3.25 4.48 4.67 3.95 3.59 4.03 3.66 times/year – end of period

4.98 7.25 7.48 5.50 4.90 5.55 4.82 times/year – average

16. Exchange rate

307.95 760.05 1,655.09 2,033.26 3,082.60 7,167.94 8,875.55 lei/USD 16.1. annual average

460.00 1,276.00 1,767.00 2,578.00 4,035.00 8,023.00 10,951.00 lei/USD 16.2. end of period

22,789.0 22,755.3 22,730.6 22,681.0 22,607.6 22,545.9 22,489.0 thou.pers. 17. Population

10,458.0 10,062.0 10,011.6 9,493.0 9,379.0 9,023.0 ... thou.pers. 18. Employment, total, of which: 4)

6,627.4 6,385.3 6,200.6 6,047.7 5,894.0 5,399.0 5,025.0 thou.pers. – employees

453.2 725.8 1,111.4 1,369.5 1,332.0 1,531.0 ... thou.pers. – private sector

929.0 1,164.7 1,223.9 998.4 657.6 881.4 1,025.1 thou.pers. 19. Unemployment 4)

8.2 10.4 10.9 9.5 6.6 8.9 10.3 % 19.1. unemployment rate 4)

11*


2b. MAIN MACROECONOMIC INDICATORS (monthly data)

Period

1994 Jan.Feb.Mar.Apr.May Jun.Jul.Aug.Sep.Oct.Nov.Dec.





199019911992199319941995199619971998

Industrial output (unad- Foreign trade (fob, mill.USD) Current Medium and Net monthly average wage andjusted series; % change) Exports Imports Balance Coverage of account long term salary earningsmonthly cumulative, imports balance, foreign debt nominal real

compared to through cumulative at end of lei/pers. monthly (monthlythe same exports (%) (mill.USD) period change change)period of the (mill.USD) (%) (%)previous year 1) 1)

1.8 5.5 383 409 –26 93.6 52 3,423.0 101,795 0.5 –4.2 –3.9 0.1 388 407 –19 95.3 –55 3,490.1 106,378 4.5 –1.3 12.9 –1.4 460 478 –18 96.2 –93 3,563.9 112,603 5.9 –2.2 –0.7 –1.4 491 513 –22 95.7 –115 3,578.3 126,194 12.1 5.7 0.3 –1.1 465 486 –21 95.7 –149 3,982.8 126,464 0.2 –4.6 7.1 –0.9 519 517 +2 100.4 –128 4,103.7 131,134 3.7 1.1

–7.4 –0.3 551 459 +92 120.0 –24 4,183.5 142,657 8.8 7.1 5.9 1.7 545 613 –68 88.9 –110 4,196.3 153,883 7.9 6.0

–1.4 2.1 581 497 +84 116.9 –16 4,281.9 153,486 –0.3 –4.0 1.2 2.4 593 510 +83 116.3 166 4,335.6 160,483 4.6 0.2 5.3 2.9 601 834 –233 72.1 177 4,338.9 167,745 4.5 1.7

–11.2 3.3 574 839 –265 68.4 –428 4,596.8 198,530 18.4 16.0 –1.9 3.8 497 520 –23 95.6 –50 4,690.1 170,885 –13.9 –15.6 2.9 7.4 613 626 –13 97.9 –165 4,753.8 173,758 1.7 0.3

17.6 10.4 598 871 –273 68.7 –433 4,918.3 182,803 5.2 4.3 –8.9 9.3 606 707 –101 85.7 –642 4,969.4 199,030 8.9 7.2 6.4 10.0 704 867 –163 81.2 –670 4,913.5 199,702 0.3 –0.8 0.3 9.2 708 860 –152 82.3 –786 4,934.2 205,080 2.7 1.4

–4.5 9.2 714 854 –140 83.6 –960 4,957.5 218,535 6.6 3.9 5.1 9.0 662 760 –98 87.1 –914 4,867.9 230,338 5.4 4.4 0.4 9.2 668 726 –58 92.0 –1,022 4,895.1 229,543 –0.3 –1.9 5.5 9.7 687 806 –119 85.2 –1,136 4,903.8 242,612 5.7 2.1 1.2 9.8 763 921 –158 82.8 –1,323 4,977.5 252,217 4.0 –0.1

–15.4 9.4 690 969 –279 71.2 –1,774 5,482.1 282,995 12.2 8.2 1.2 8.5 618 776 –158 79.6 –169 5,416.2 256,563 –9.3 –10.4 1.5 7.7 627 735 –108 85.3 –315 5,529.8 248,880 –3.0 –4.8

12.5 5.7 701 838 –137 83.7 –493 5,620.6 262,237 5.4 3.6 0.3 7.5 689 895 –206 77.0 –698 5,569.8 301,558 15.0 12.9 4.6 8.2 712 886 –174 80.4 –923 6,115.8 293,508 –2.7 –7.6

–4.0 7.8 663 801 –138 82.8 –1,069 6,450.5 294,148 0.2 –0.8 5.0 9.0 703 924 –221 76.1 –1,362 6,620.1 333,797 13.5 5.6

–4.6 8.6 655 763 –108 85.8 –1,457 6,630.0 343,090 2.8 –1.0 5.0 8.8 670 816 –146 82.1 –1,592 6,578.6 341,361 –0.5 –2.8 8.0 9.3 710 1,011 –301 70.2 –1,924 7,182.2 374,633 9.7 6.1

–3.1 9.2 682 1,004 –322 67.9 –2,262 7,242.6 380,375 1.5 –4.1 –8.0 6.3 655 1,106 –451 59.2 –2,571 7,208.9 433,692 14.0 3.4 4.3 13.0 607 774 –167 78.5 –184 7,164.3 396,892 –8.5 –19.5 0.9 14.4 643 694 –51 92.7 –219 7,351.2 456,305 15.0 –3.2 1.7 12.5 693 683 +10 101.4 –250 7,562.2 507,026 11.1 –15.0

–9.3 8.1 700 803 –103 87.2 –396 7,616.7 591,867 16.7 9.2 0.1 4.2 734 920 –186 79.8 –597 7,753.5 567,647 –4.1 –8.1

–3.3 2.8 772 948 –176 81.4 –864 8,089.2 580,978 2.3 0.0 0.1 0.7 790 990 –201 79.7 –1,094 7,920.5 621,728 7.0 6.3

–0.8 –1.8 698 766 –68 91.1 –1,198 7,848.5 650,641 4.7 1.1 –2.2 –3.5 749 822 –72 91.2 –1,277 8,264.9 710,242 9.2 5.7 12.5 –4.4 713 937 –224 76.1 –1,565 8,343.9 797,194 12.2 5.4

1.3 –5.1 671 956 –285 70.2 –1,787 8,269.8 820,842 3.0 –1.3 –18.4 –7.2 660 1,118 –459 59.0 –2,137 8,584.3 940,495 14.6 9.6

–6.6 –24.0 616 664 –48 92.8 –91 8,490.5 884,424 –6.0 –10.4 0.8 –24.0 699 711 –12 98.3 –80 8,478.2 878,620 –0.7 –7.3

10.0 –21.9 733 917 –184 79.9 –224 8,180.7 954,305 8.6 4.6 –9.3 –21.1 667 894 –227 74.6 –566 8,203.1 1,045,498 9.6 6.7 1.6 –20.2 678 966 –288 70.2 –901 8,270.6 999,233 –4.4 –6.6 0.2 –19.2 740 982 –242 75.4 –1,075 8,384.6 1,040,621 4.1 2.8

–3.3 –18.9 745 1,026 –281 72.6 –1,323 8,410.9 1,098,549 5.6 4.2 –0.9 –18.6 616 764 –147 80.8 –1,478 8,426.4 1,122,880 2.2 1.6 10.8 –17.3 691 1,036 –345 67.8 –1,848 8,699.3 1,139,952 1.5 –1.1

2.0 –16.9 741 1,011 –271 73.2 –2,230 8,857.4 1,170,924 2.7 –1.1 –7.1 –17.4 681 894 –212 76.2 –2,516 8,773.0 1,191,510 1.8 –0.1 –8.0 –17.0 693 1,047 –354 66.2 –3,010 9,081.3 1,360,261 14.2 11.7

x –23.7 5,775 9,203 –3,427 62.8 –3,337 230.0 3,381 3.2 0.5 x –22.8 4,266 5,372 –1,106 79.4 –1,012 1,143.0 7,460 9.1 –1.1 x –21.9 4,363 5,784 –1,421 75.4 –1,564 2,479.0 20,140 8.8 –0.7 x 1.3 4,892 6,020 –1,128 81.3 –1,174 3,357.0 59,717 9.9 –2.0 x 3.3 6,151 6,562 –411 93.7 –428 4,596.8 141,951 5.8 1.6 x 9.4 7,910 9,487 –1,577 83.4 –1,774 5,482.1 211,373 3.0 0.9 x 6.3 8,085 10,555 –2,471 76.6 –2,571 7,208.9 321,169 3.6 –0.2 x –7.2 8,431 10,411 –1,980 81.0 –2,137 8,584.3 632,086 6.7 –1.2 x –17.0 8,300 10,911 –2,611 76.1 –3,010 9,081.3 1,073,898 3.1 0.2

Source: National Commission for Statistics, Ministry of Finance, Companies House, and National Bank of Romania.1) Data at the bottom of the table are average monthly changes during the year.

12*



Period






199019911992199319941995199619971998

(continued)Monthly Monthly Employ- Unemployment Government budget Discount Average interest rateschange in change in ment in (end of period) cumulative from the beginning of the rate of commercial banksconsumer producer economy Unemployed Unemploy- year (bill.lei) (% p.a.) (non-bank clients)prices prices total ment rate Revenues Expenditures Deficit (–) 2) (% p.a.) 2)(%) (%) (thou. pers.) (%) Surplus (+) lending deposit

1) 1)4.9 8.4 6,176.0 1,230.4 11.0 516.2 290.4 +225.8 70.0 93.7 49.0 5.9 8.7 6,188.0 1,275.2 11.4 1,002.9 872.2 +130.7 70.0 105.0 58.2 8.3 7.0 6,254.0 1,291.3 11.5 1,603.5 1,519.2 +84.3 70.0 105.7 60.2 6.1 11.0 6,256.0 1,263.8 11.3 2,342.1 2,185.2 +156.9 70.0 108.0 62.0 5.0 7.0 6,254.0 1,254.4 11.2 2,996.6 2,741.7 +254.9 70.0 106.5 67.3 2.6 1.9 6,248.0 1,212.7 10.8 3,712.0 3,778.0 –66.0 70.0 105.9 59.3 1.6 2.2 6,199.0 1,205.6 10.7 4,355.9 4,698.4 –342.5 70.0 95.9 59.7 1.8 1.1 6,122.0 1,182.0 10.5 5,094.7 5,757.9 –663.2 67.3 83.4 60.0 3.9 3.4 6,061.0 1,191.8 10.6 6,042.7 6,872.1 –829.4 62.0 81.0 55.8 4.4 1.6 5,999.0 1,213.9 10.8 6,904.1 7,757.8 –853.7 58.0 73.7 53.4 2.8 2.7 5,940.0 1,211.9 10.8 7,762.1 8,797.4 –1,035.4 58.0 64.1 49.6 2.1 2.1 5,900.0 1,223.9 10.9 8,860.2 10,930.4 –2,070.2 58.0 61.8 49.5 2.0 1.3 5,802.0 1,234.9 11.0 807.4 622.6 +184.8 55.0 56.3 44.3 1.4 1.5 5,857.0 1,245.4 11.1 1,674.5 1,568.9 +105.6 48.5 54.0 41.7 0.9 0.5 5,928.0 1,229.0 10.9 2,741.1 2,779.6 –38.5 44.0 52.1 39.4 1.6 4.1 5,925.0 1,183.7 10.5 3,687.4 3,942.6 –255.2 40.0 51.1 37.6 1.1 2.6 5,965.0 1,151.8 10.3 4,721.5 5,165.5 –444.0 40.0 49.4 35.2 1.3 3.7 5,967.0 1,114.7 9.9 5,746.2 6,634.4 –888.2 40.0 48.1 37.6 2.6 3.3 5,993.0 1,085.5 9.7 6,749.2 7,945.4 –1,196.1 40.0 48.0 37.5 1.0 1.6 5,930.0 1,061.8 9.5 7,849.8 9,336.7 –1,486.9 35.0 47.9 36.1 1.6 1.9 5,893.0 1,038.0 9.2 9,096.6 10,737.3 –1,640.7 35.0 46.1 34.1 3.5 2.4 5,862.0 1,007.1 9.0 10,296.6 12,324.8 –2,028.2 33.0 42.8 30.9 4.1 2.8 5,783.0 985.5 8.8 11,572.8 13,806.2 –2,233.4 33.0 44.0 31.1 3.7 2.6 5,707.0 998.4 9.5 12,888.3 15,858.0 –2,969.7 34.1 47.5 32.4 1.2 2.6 5,648.0 1,042.2 9.0 1,307.8 1,515.0 –207.2 35.0 48.9 34.0 1.9 3.3 5,638.0 1,055.3 10.1 2,534.2 2,846.0 –311.8 35.0 55.4 36.7 1.7 2.8 5,706.0 1,031.4 9.8 3,680.9 4,475.5 –794.6 35.0 57.9 38.0 1.9 4.1 5,794.0 926.7 8.0 4,951.9 5,934.8 –983.0 35.0 56.5 37.8 5.3 3.7 5,841.0 862.7 8.2 6,964.6 7,561.1 –596.5 35.0 56.9 38.5 1.0 3.6 5,865.0 798.0 6.0 8,258.4 9,501.2 –1,242.9 35.0 57.4 38.7 7.5 13.2 5,875.0 736.4 7.0 9,625.8 11,287.5 –1,661.7 35.0 56.8 38.7 3.8 4.8 5,826.0 692.6 6.0 11,094.6 12,998.8 –1,904.2 35.0 55.4 38.7 2.4 4.0 5,802.0 664.6 6.3 12,551.5 15,411.2 –2,859.7 35.0 55.0 38.9 3.4 2.1 5,762.0 659.4 6.3 14,207.3 17,870.6 –3,663.3 35.0 55.2 38.8 5.8 2.1 5,715.0 644.6 6.1 15,991.3 20,189.6 –4,198.3 35.0 54.7 38.9

10.3 2.4 5,634.0 657.6 6.6 18,372.8 23,732.0 –5,359.2 35.0 53.6 38.9 13.7 8.9 5,508.0 702.5 7.0 2,128.0 2,465.7 –337.7 50.0 53.2 39.0 18.8 17.0 5,502.0 748.1 7.5 4,224.9 4,565.6 –340.7 50.0 69.7 58.7 30.7 52.6 5,532.0 757.7 7.5 6,469.8 8,452.2 –1,982.5 50.0 108.0 96.6

6.9 5.2 5,503.0 731.0 7.3 9,962.2 12,395.8 –2,433.6 50.0 112.7 94.9 4.3 5.8 5,529.0 709.5 7.1 13,944.8 16,255.6 –2,310.9 50.0 109.0 87.5 2.3 4.4 5,501.0 727.9 7.3 17,222.9 20,371.6 –3,148.7 50.0 91.4 73.8 0.7 1.5 5,482.0 720.3 7.2 20,728.0 26,022.0 –5,294.0 44.7 69.0 47.4 3.5 0.6 5,406.0 708.5 7.1 24,429.5 30,258.6 –5,829.1 40.0 52.8 38.4 3.3 2.5 5,310.0 721.1 7.2 28,814.7 34,703.0 –5,888.3 40.0 49.8 33.6 6.5 1.7 5,225.0 763.4 7.6 33,624.2 39,384.5 –5,760.3 40.0 48.1 32.7 4.3 3.4 5,135.0 816.4 8.1 38,150.9 44,717.7 –6,566.9 40.0 50.5 32.9 4.5 2.1 5,125.0 881.4 8.9 43,834.5 52,896.6 –9,062.1 40.0 55.6 34.1 4.9 3.0 5,287.0 920.1 9.3 5,404.6 5,359.2 +45.4 40.0 59.8 36.3 7.2 2.7 5,250.0 961.7 9.7 9,628.9 10,436.8 –807.9 40.0 62.0 40.1 3.8 1.7 5,217.0 953.4 9.6 13,890.2 16,770.4 –2,880.1 40.0 62.1 40.6 2.7 2.2 5,252.0 933.9 9.4 19,906.5 24,972.0 –5,065.5 40.0 60.7 39.6 2.3 1.4 5,259.0 907.2 9.2 24,539.9 30,427.5 –5,887.5 40.0 57.4 38.2 1.3 0.8 5,248.0 883.9 8.9 30,095.1 37,124.7 –7,029.6 40.0 53.2 34.3 1.3 0.2 5,214.0 871.0 8.8 36,210.1 43,054.4 –6,844.3 40.0 48.5 32.4 0.6 0.7 5,165.0 848.3 8.7 41,195.3 47,491.7 –6,296.5 35.0 47.0 32.1 2.7 1.3 5,155.0 857.2 8.7 47,148.8 54,403.9 –7,255.2 35.0 47.9 33.5 3.9 1.2 5,105.6 894.6 9.0 54,517.4 61,897.9 –7,380.5 35.0 53.0 37.5 1.9 1.7 5,060.8 940.0 9.5 60,160.2 68,230.1 –8,069.9 35.0 54.3 40.4 2.2 1.3 5,024.8 1,025.1 10.3 67,215.5 77,616.6 –10,401.0 35.0 58.9 42.3

2.7 8.1 8,142.2 x x 212.7 210.2 +2.5 3.0 3.8 3 – 5 10.3 11.5 7,483.5 337.4 3.0 496.8 537.9 –41.1 18.0 14.8 8.6

9.6 6.1 6,627.4 929.0 8.2 1,363.9 1,627.0 –263.1 50.5 49.6 28.3 12.1 9.6 6,385.3 1,164.7 10.4 3,792.4 4,313.6 –521.2 70.0 58.9 33.8

4.1 4.8 5,900.0 1,223.9 10.9 8,860.2 10,930.4 –2,070.2 65.3 91.4 58.9 2.1 2.3 5,707.0 998.4 9.5 12,888.3 15,858.0 –2,969.7 39.6 48.6 36.5 3.8 4.1 5,634.0 657.6 6.6 18,372.8 23,732.0 –5,359.2 35.0 55.8 38.1 8.0 8.1 5,125.0 881.4 8.9 43,834.5 52,896.6 –9,062.1 47.2 63.7 51.6 2.9 1.5 5,024.8 1,025.1 10.3 67,215.5 77,616.6 –10,401.0 38.0 56.9 38.3

2) Annual data at the bottom of the table are chronological means; interest rates are calculated as weighted arithmetic means.

13*



Period






199019911992199319941995199619971998

(continued)Foreign assets; end Domestic credit Broad money (M2) Exchange rate on forex market 3) Foreign investorsof period (convertible (end of period; (end of period; bill.lei) 2) lei/USD lei/ECU (direct and portfoliocurrencies less gold) billions of lei) 2) Total M1 Quasi average end average end investment) 4)(bill.lei) 2) total, net of which, money of period of period Total Forexgross net credit capital

to non- (mill.USD)government

1,420.1 8.9 4,238.1 5,158.1 4,574.0 1,924.2 2,649.8 1,387.16 1,450.00 1,544.25 1,624.15 30,130 772.1 1,541.9 6.2 4,543.0 5,451.3 4,934.7 2,126.6 2,808.1 1,493.50 1,570.00 1,671.73 1,772.14 30,722 795.8 1,667.3 78.9 4,852.1 5,725.9 5,230.7 2,132.9 3,097.9 1,601.30 1,650.00 1,824.83 1,894.94 31,816 820.9 1,801.7 222.9 4,474.7 5,987.3 5,481.1 2,277.1 3,204.0 1,670.71 1,659.00 1,902.06 1,913.24 32,562 831.8 2,438.2 –759.4 4,529.2 6,269.6 5,774.5 2,375.3 3,399.2 1,657.24 1,659.00 1,925.56 1,941.78 33,977 880.2 2,797.1 –503.7 4,872.6 6,614.8 6,290.7 2,670.1 3,620.6 1,667.09 1,677.00 1,965.72 2,035.29 34,884 924.9 2,950.1 –295.3 5,360.5 7,066.9 6,929.5 2,975.9 3,953.6 1,685.71 1,690.00 2,051.40 2,052.76 36,808 942.7 3,070.6 –174.9 5,842.7 7,439.0 7,441.8 3,192.5 4,249.3 1,687.83 1,701.00 2,056.05 2,045.00 38,028 954.5 3,251.7 –19.9 6,545.6 7,937.3 8,045.5 3,320.8 4,724.7 1,727.09 1,756.00 2,134.36 2,170.00 39,467 943.9 3,360.6 145.6 6,963.1 8,410.5 8,414.2 3,537.6 4,876.6 1,752.95 1,752.00 2,192.81 2,234.00 40,481 974.6 3,554.6 343.3 7,338.9 8,875.7 8,974.2 3,777.7 5,196.5 1,756.55 1,770.00 2,193.00 2,156.00 42,395 1,225.9 3,785.9 162.3 9,183.4 9,484.5 10,648.7 4,534.2 6,114.5 1,773.90 1,767.00 2,148.90 2,134.00 43,100 1,271.8 3,798.5 –97.9 9,174.3 9,852.0 10,447.7 3,998.2 6,449.5 1,776.00 1,780.00 2,193.48 2,219.00 44,130 1,311.5 3,725.5 –241.6 9,475.5 10,216.2 10,565.7 3,846.9 6,718.8 1,798.85 1,810.00 2,247.95 2,292.00 44,579 1,316.5 3,605.8 –601.8 10,169.9 10,735.3 11,191.2 4,068.7 7,122.5 1,832.57 1,847.00 2,380.43 2,441.00 45,002 1,350.0 3,522.0 –775.8 10,799.4 11,174.0 11,504.6 4,241.7 7,262.9 1,864.95 1,879.00 2,472.80 2,502.00 45,502 1,339.2 3,475.5 –711.8 11,183.1 11,515.6 12,037.9 4,354.7 7,683.2 1,911.20 1,937.00 2,500.86 2,571.00 46,021 1,370.5 3,644.8 –667.2 11,872.5 11,897.7 12,753.4 4,639.0 8,114.4 1,955.82 1,975.00 2,578.50 2,619.00 46,632 1,399.0 3,536.4 –720.9 12,670.7 12,463.5 13,352.2 4,990.6 8,361.6 1,994.29 2,018.00 2,655.95 2,700.00 47,136 1,436.7 3,390.4 –853.3 13,580.1 13,117.4 14,078.7 5,252.8 8,825.9 2,045.91 2,069.00 2,663.30 2,637.00 47,671 1,479.1 3,159.8 –1,140.6 14,213.2 14,044.6 14,622.3 5,516.3 9,105.9 2,100.00 2,128.00 2,677.29 2,762.00 48,301 1,521.2 3,152.4 –1,327.6 15,390.7 14,955.3 15,395.8 5,905.6 9,490.2 2,166.20 2,225.00 2,812.59 2,916.00 48,644 1,543.2 3,843.5 –1,178.5 16,388.6 15,860.6 16,607.2 6,249.5 10,357.8 2,395.27 2,547.00 3,107.32 3,291.00 49,062 1,583.8 4,252.9 –1,286.6 17,399.0 16,435.4 18,278.1 7,083.2 11,194.9 2,558.00 2,578.00 3,263.61 3,299.00 49,206 1,595.0 3,856.0 –1,558.7 17,963.8 16,779.0 18,254.0 6,557.1 11,696.9 2,599.24 2,640.00 3,289.00 3,245.00 49,746 1,677.4 4,035.3 –1,980.6 18,733.5 17,494.9 18,904.6 6,376.2 12,528.4 2,773.71 2,859.00 3,468.00 3,630.00 50,026 1,707.6 4,602.0 –1,790.9 19,340.2 18,075.3 19,359.7 6,416.1 12,943.6 2,872.60 2,937.00 3,606.14 3,671.00 50,342 1,747.0 4,218.0 –1,950.0 20,079.1 18,656.7 19,797.5 6,740.3 13,057.2 2,911.14 2,913.00 3,630.29 3,582.00 50,698 1,784.0 5,264.1 –2,038.8 20,207.3 19,369.2 20,644.4 7,078.8 13,565.6 2,930.41 2,951.00 3,599.41 3,610.00 51,145 1,871.6 5,867.6 –2,190.0 21,521.6 19,882.6 21,405.2 7,347.9 14,057.4 2,988.00 3,028.00 3,698.30 3,747.00 51,493 1,906.6 6,027.8 –2,451.8 22,895.7 21,015.3 22,580.7 7,843.2 14,737.5 3,063.22 3,135.00 3,841.17 3,983.00 51,917 1,945.6 5,586.3 –2,708.6 23,584.7 21,517.1 23,235.7 8,078.6 15,157.1 3,143.91 3,162.00 3,989.95 4,029.00 52,288 2,047.1 5,625.7 –2,756.2 24,869.5 22,159.8 24,113.5 8,506.4 15,607.1 3,201.19 3,261.00 4,036.57 4,090.00 52,626 2,052.3 7,233.8 –3,013.0 27,275.4 23,787.3 25,927.6 9,515.8 16,411.9 3,295.74 3,375.00 4,125.65 4,280.00 53,051 2,144.4 7,411.3 –3,444.4 29,022.8 25,064.6 27,687.9 10,168.1 17,519.8 3,478.19 3,591.00 4,421.67 4,545.00 53,465 2,181.5 8,766.1 –3,990.3 31,450.0 26,841.4 30,334.6 11,173.4 19,161.3 3,733.89 4,035.00 4,648.61 5,005.00 53,581 2,208.7

10,975.0 –5,732.0 36,765.2 32,168.3 33,623.2 9,724.8 23,898.4 4,963.40 5,932.00 6,009.00 7,041.00 54,108 2,224.4 14,183.9 –7,224.7 41,867.4 37,344.3 37,805.2 8,901.8 28,903.4 6,895.70 7,744.00 7,981.60 8,851.00 54,477 2,271.6 13,678.5 –6,463.3 40,298.4 35,081.5 37,865.6 8,948.2 28,917.4 7,235.90 6,996.00 8,321.19 8,100.00 54,603 2,318.3 16,062.5 –4,091.4 39,368.7 34,636.7 39,747.4 10,096.2 29,651.2 7,048.52 7,095.00 8,050.00 8,018.00 54,834 2,454.5 16,744.5 –3,899.6 40,414.8 35,971.4 41,641.1 10,551.1 31,090.0 7,090.71 7,110.00 8,116.81 8,130.00 55,159 2,486.2 19,904.9 176.8 37,697.2 36,195.7 43,956.9 11,854.1 32,102.8 7,172.29 7,032.00 8,120.10 7,932.00 55,346 2,570.1 22,924.8 2,282.5 40,393.2 37,373.0 47,822.5 12,805.5 35,017.1 7,164.26 7,354.00 7,899.57 7,917.00 50,058 2,385.6 24,151.1 2,840.0 41,991.1 39,668.3 49,317.5 13,387.3 35,930.2 7,445.24 7,471.00 7,950.57 8,182.00 50,273 2,390.4 28,420.7 5,206.3 42,591.9 38,216.6 51,526.7 14,762.9 36,763.8 7,528.82 7,613.00 8,255.68 8,429.00 50,980 2,678.5 28,871.4 5,043.9 44,722.3 39,733.2 53,259.2 15,240.2 38,019.0 7,702.09 7,741.00 8,612.43 8,815.00 51,761 2,703.6 30,589.0 7,113.3 45,959.9 36,246.0 56,404.3 15,577.8 40,826.5 7,808.15 7,860.00 8,915.50 8,820.00 52,408 2,721.8 31,145.6 7,885.8 47,432.0 35,900.7 62,150.4 18,731.1 43,419.3 7,960.25 8,023.00 8,858.65 8,867.00 53,203 2,780.0 30,255.0 6,730.4 49,348.2 38,245.7 60,260.1 15,150.9 45,109.2 8,293.40 8,248.00 9,016.85 8,912.00 53,891 2,852.6 29,749.7 6,633.6 51,784.3 40,260.8 61,838.6 15,620.7 46,217.9 8,230.90 8,105.00 8,962.05 8,862.00 54,532 2,860.9 28,828.4 4,838.0 54,559.2 41,319.1 63,809.7 15,366.3 48,443.5 8,207.09 8,490.00 8,915.00 9,135.00 … 2,990.4 28,199.0 4,460.0 56,981.5 42,404.3 64,884.6 15,665.2 49,219.4 8,379.62 8,345.00 9,152.05 9,197.00 … 3,014.1 28,343.2 4,783.0 59,184.2 43,726.5 66,869.1 16,126.6 50,742.5 8,477.25 8,511.00 9,415.70 9,399.00 … 3,151.8 29,103.3 5,004.7 61,185.4 45,141.1 69,478.4 17,311.5 52,166.9 8,569.36 8,670.00 9,450.32 9,494.00 58,354 3,279.2 28,821.0 5,119.7 64,456.6 46,296.3 70,993.4 17,410.1 53,583.3 8,699.43 8,744.00 9,563.52 9,674.00 59,103 3,360.8 28,578.0 4,969.5 66,460.5 47,782.1 72,798.2 17,906.3 54,891.9 8,781.24 8,924.00 9,687.38 9,943.00 … … 27,302.2 2,794.1 70,928.3 51,007.0 75,068.3 18,638.0 56,430.3 9,050.14 9,238.00 10,454.23 10,847.00 60,410 3,407.2 26,613.3 763.9 73,953.3 53,924.6 76,567.7 18,189.1 58,378.6 9,380.68 9,592.00 11,285.55 11,417.00 61,345 3,465.2 24,817.9 –905.9 77,814.1 56,435.6 79,196.1 18,759.2 60,436.9 9,908.86 10,082.00 11,592.43 11,616.00 61,875 3,468.2 32,344.2 4,637.0 81,289.0 59,086.5 92,529.9 22,109.7 70,420.1 10,528.59 10,951.00 12,383.68 12,788.00 63,255 3,648.5

24.6 19.4 553.7 747.2 478.0 232.3 245.7 22.43 34.71 … … … … 35.0 –26.2 674.6 809.7 603.5 316.4 287.1 76.39 189.00 … … 6,182 537.9

197.2 –61.8 1,255.1 1,421.7 1,238.9 758.0 480.9 307.95 460.00 … … 18,872 896.3 755.0 –166.7 2,640.2 3,095.6 2,759.6 1,450.3 1,309.3 760.05 1,276.00 884.60 1,445.64 29,392 1,264.6

2,534.7 –73.2 5,523.7 6,844.1 6,637.6 2,807.8 3,829.8 1,655.09 1,767.00 1,967.56 2,134.00 40,941 2,261.8 3,572.8 –739.9 12,350.8 12,399.3 13,085.0 4,906.1 8,178.9 2,033.26 2,578.00 2,629.51 3,299.00 44,638 2,562.5 5,519.8 –2,376.8 22,493.2 20,453.3 22,184.8 7,813.1 14,371.7 3,082.60 4,035.00 3,862.90 5,005.00 48,557 3,139.3

20,538.5 –233.4 40,959.3 36,167.2 44,934.3 12,233.5 32,700.8 7,167.94 8,023.00 8,090.93 8,867.00 53,203 2,780.0 28,529.7 4,287.7 62,584.7 46,169.7 69,925.4 17,213.7 52,711.7 8,875.55 10,951.00 9,989.90 12,788.00 63,255 3,648.5 2) Annual data at the bottom of the table are chronological means; interest rates are calculated as weighted arithmetic means. 3) Reference exchange rate until March 11, 1997; 4) Starting July 1997, direct investment only.

14*


3. COMPOSITION OF FOREIGN TRADE BY GROUP OF COUNTRIES- percent; end of period -

Period Exports fob Imports cifDeveloped countries Countries in Developing Developed countries Countries in DevelopingTotal EU Other transition from countries Total EU Other transition from countries

countries developed Central & Eastern countries developed Central & Easterncountries Europe 1) countries Europe 1)

1994 Jan. 54.6 48.6 6.0 14.7 30.6 59.7 49.9 9.8 22.5 17.6 Feb. 56.2 48.9 7.3 15.2 28.5 55.6 46.0 9.6 22.6 21.3 Mar. 54.9 47.4 7.5 14.5 30.2 58.0 47.6 10.4 23.8 17.9 Apr. 52.8 45.6 7.2 14.3 32.5 57.4 46.3 11.1 24.4 17.9 May 53.1 45.6 7.5 13.5 32.8 59.2 47.7 11.5 23.7 16.8 Jun. 54.1 46.6 7.5 13.1 32.0 59.7 49.0 10.7 24.4 15.6 Jul. 55.3 48.0 7.3 12.6 31.4 61.1 50.3 10.8 23.9 14.8 Aug. 55.3 47.8 7.5 12.4 31.6 59.5 48.5 11.9 23.9 16.4 Sep. 55.8 48.2 7.6 12.2 31.3 60.0 48.6 11.4 23.7 16.0 Oct. 55.6 48.1 7.5 13.4 30.2 60.3 49.2 11.1 23.6 15.7 Nov. 56.1 48.3 7.8 13.2 30.0 60.7 48.2 12.5 23.3 15.6 Dec. 56.0 48.2 7.8 13.2 30.1 60.4 48.2 12.2 23.0 16.2





1990 44.1 33.9 10.2 36.4 19.5 31.2 21.8 9.4 37.6 31.2 1991 45.1 36.9 8.2 34.2 20.7 38.1 28.7 9.4 29.0 32.9 1992 42.9 35.2 7.7 24.8 32.0 50.3 41.3 9.0 26.2 23.2 1993 48.7 41.4 7.3 15.0 35.9 57.6 45.3 12.3 21.2 20.8 1994 56.0 48.2 7.8 13.2 30.1 60.4 48.2 12.2 23.0 16.2 1995 61.7 54.2 7.5 10.4 27.1 60.0 50.5 9.5 21.2 18.2 1996 62.2 56.5 5.7 11.0 25.6 61.6 52.3 9.3 21.0 17.1 1997 64.9 56.5 8.4 12.6 21.9 62.7 52.5 10.2 21.6 15.4 1998 72.2 64.5 7.7 10.6 16.3 66.3 57.7 8.6 21.1 12.1

1) Including Russian Federation.

15*


4. WAGE AND SALARY EARNINGS BY MAIN SECTOR

Period Monthly net nominal averages (lei/person) Indices compared to the same period of previous year (%)1)Total economy

Industry Construc- tion

Agricul- ture

Trans- ports

Trade Public administration

Total economy

Industry Construc- tion

Agricul- ture

Trans- port

Trade Public administration

1994 Jan. 101,795 103,420 94,727 79,564 126,759 79,657 93,041 366.7 370.5 365.4 356.2 349.2 364.2 345.1 Feb. 106,378 109,576 104,601 88,481 126,844 86,242 109,412 364.8 372.9 345.8 367.2 321.8 382.9 397.3 Mar. 112,603 116,467 119,345 93,628 141,536 93,763 106,646 303.1 301.3 309.8 316.0 321.6 329.4 322.4 Apr. 126,194 133,310 131,708 102,940 149,913 103,322 114,997 329.3 338.0 315.2 298.0 330.2 330.3 342.7 May 126,464 132,011 133,975 108,170 141,848 101,251 127,347 247.8 255.1 249.8 247.8 258.5 273.8 300.5 Jun. 131,134 139,121 143,575 112,497 144,910 105,421 124,843 222.6 220.2 227.3 237.5 232.2 248.3 257.5 Jul. 142,657 147,932 151,755 113,210 191,773 116,663 125,151 226.5 219.5 206.6 216.0 245.5 238.8 212.4 Aug. 153,883 164,634 164,090 122,822 195,040 124,308 136,420 216.7 221.4 211.1 203.2 237.3 229.0 194.7 Sep. 153,486 161,603 166,875 124,078 190,823 128,324 130,562 217.8 218.5 210.8 202.8 226.8 230.8 187.4 Oct. 160,483 161,355 166,255 128,832 210,879 131,262 151,779 204.6 200.4 190.0 192.9 211.8 198.0 200.6 Nov. 167,745 171,654 177,080 141,268 199,446 137,128 158,349 184.4 184.2 188.2 181.1 171.5 178.1 171.9 Dec. 198,530 192,720 198,201 168,263 239,814 160,255 233,220 195.9 182.5 199.5 188.0 182.7 181.2 249.1



1997 Jan. 396,892 419,845 366,848 303,157 483,142 319,464 368,710 154.7 162.7 154.0 149.1 160.7 155.9 138.2 Feb. 456,305 498,698 418,941 333,082 557,018 360,343 424,716 183.3 193.7 170.9 165.2 169.3 170.1 189.9 Mar. 507,026 560,295 472,042 362,605 572,683 408,262 474,911 193.3 203.3 180.7 171.5 172.0 182.3 205.7 Apr. 591,867 651,368 536,761 395,940 761,606 469,458 485,912 196.3 203.8 182.9 168.4 195.8 183.7 199.2 May 567,647 624,526 562,053 520,873 698,057 440,917 481,719 193.4 200.1 186.6 219.7 185.1 178.1 203.4 Jun. 580,978 631,450 599,253 425,490 750,691 460,803 511,553 197.5 206.3 195.8 176.5 203.5 185.9 211.0 Jul. 621,728 689,039 649,478 456,229 737,455 475,832 523,553 186.3 184.1 183.5 172.2 187.9 176.7 183.4 Aug. 650,641 711,672 680,004 483,448 818,747 522,093 566,445 189.6 187.3 188.7 180.9 194.6 183.6 196.8 Sep. 710,242 767,905 723,104 539,764 865,672 577,710 630,237 208.1 205.7 205.3 202.3 201.1 205.8 221.5 Oct. 797,194 859,118 790,821 557,428 1,034,712 628,088 712,290 212.8 208.5 203.5 189.6 219.3 212.5 230.9 Nov. 820,842 867,152 796,507 574,815 995,295 660,832 799,181 215.8 208.8 205.2 187.4 220.6 211.2 251.3 Dec. 940,495 969,965 897,370 647,605 1,135,484 807,089 1,034,756 216.9 211.4 212.1 179.8 211.1 210.6 235.4

1998 Jan. 884,424 921,223 814,722 607,622 1,070,663 681,311 981,942 222.8 219.4 222.1 200.4 221.6 213.3 266.3 Feb. 878,620 923,759 821,482 604,834 1,041,752 704,332 940,078 192.6 185.2 196.1 181.6 187.0 195.5 221.3 Mar. 954,305 1,003,089 923,690 636,585 1,101,354 764,123 1,008,785 188.2 179.0 195.7 175.6 192.3 187.2 212.4 Apr. 1,045,498 1,107,938 971,264 721,181 1,239,273 825,151 1,163,170 176.6 170.1 180.9 182.1 162.7 175.8 239.4 May 999,233 1,043,216 974,959 727,426 1,174,668 776,422 1,213,869 176.0 167.0 173.5 139.7 168.3 176.1 252.0 Jun. 1,040,621 1,091,878 1,046,079 750,920 1,158,142 804,067 1,236,709 179.1 172.9 174.6 176.5 154.3 174.5 241.8 Jul. 1,098,549 1,181,771 1,100,361 810,974 1,192,972 839,822 1,209,700 176.7 171.5 169.4 177.8 161.8 176.5 231.1 Aug. 1,122,880 1,180,172 1,117,821 823,233 1,247,866 890,963 1,314,681 172.6 165.8 164.4 170.3 152.4 170.7 232.1 Sep. 1,139,952 1,195,908 1,147,582 831,120 1,265,615 905,840 1,369,317 160.5 155.7 158.7 154.0 146.2 156.8 217.3 Oct. 1,170,924 1,222,038 1,160,732 847,968 1,373,040 916,590 1,437,995 146.9 142.2 146.8 152.1 132.7 145.9 201.9 Nov. 1,191,510 1,224,320 1,159,639 864,413 1,405,350 937,409 1,468,963 145.2 141.2 145.6 150.4 141.2 141.9 183.8 Dec. 1,360,261 1,383,185 1,322,109 952,815 1,521,335 1,114,735 1,945,386 144.6 142.6 147.3 147.1 134.0 138.1 188.0

1990 3,381 3,333 3,749 3,587 3,764 2,936 3,790 110.5 109.5 105.2 118.1 117.9 110.4 109.5 1991 7,460 7,499 7,981 6,752 8,850 6,857 8,206 220.6 225.0 212.9 188.2 235.1 233.5 216.5 1992 20,140 20,508 21,438 17,151 25,229 18,075 20,973 270.0 273.5 268.6 254.0 285.1 263.6 255.6 1993 59,717 62,388 64,189 49,053 71,548 52,751 62,663 296.5 304.2 299.4 286.0 283.6 291.8 298.8 1994 141,951 146,999 164,945 112,922 166,573 124,038 149,888 237.7 235.6 257.5 230.2 232.8 235.1 239.2 1995 211,373 227,469 224,855 171,148 253,344 168,777 225,914 148.9 154.7 136.3 151.6 152.1 136.1 150.7 1996 321,169 350,039 332,082 254,194 397,682 250,282 304,649 151.9 153.9 147.7 148.5 157.0 148.3 134.9 1997 632,086 693,437 617,101 469,680 772,902 459,497 608,716 196.8 198.1 185.8 184.8 194.4 183.6 199.8 1998 1,073,898 1,123,208 1,046,703 764,924 1,232,669 846,730 1,274,216 169.9 162.0 169.6 162.9 159.5 184.3 209.3

Source: National Commission for Statistics.1) Based on data published by National Commission for Statistics.

15*


5. CONSUMER PRICES AND INDUSTRIAL PRODUCER PRICES- percent -

Period Monthly change Index compared to the end of previous year Index compared to the same period of previous year

Industrial Consumer prices Industrial Consumer prices Industrial Consumer pricesproducer prices

Total food items

non-food items

services producer prices 1)

Total food items

non-food items

services producer prices

Total food items

non-food items

services

1994 Jan. 8.4 4.9 3.9 5.7 6.1 108.4 104.9 103.9 105.7 106.1 294.2 372.1 360.7 376.3 370.1 Feb. 8.7 5.9 6.9 4.7 6.0 117.8 111.1 111.1 110.7 112.5 314.3 364.1 364.5 360.7 373.8 Mar. 7.0 8.3 11.1 4.9 8.0 126.0 120.3 123.3 116.1 121.5 327.7 361.1 351.3 367.1 371.8 Apr. 11.0 6.1 5.9 6.3 6.1 139.8 127.5 130.7 123.5 128.9 351.2 348.2 332.9 359.9 365.7 May 7.0 5.0 5.5 4.1 5.7 149.6 133.9 137.9 128.5 136.2 307.6 280.5 269.6 282.5 312.3 Jun. 1.9 2.6 1.1 3.2 6.6 152.4 137.4 139.4 132.6 145.2 271.6 272.5 271.4 268.0 289.6 Jul. 2.2 1.6 0.6 2.7 2.0 155.7 139.5 140.2 136.2 148.1 246.5 244.5 247.9 241.3 242.4 Aug. 1.1 1.8 0.4 2.8 3.8 157.5 142.0 140.8 140.0 153.7 226.7 224.6 226.8 219.6 234.0 Sep. 3.4 3.9 5.0 2.7 3.7 162.8 147.5 147.8 143.8 159.4 219.1 210.4 212.8 203.2 226.9 Oct. 1.6 4.4 4.9 3.6 4.9 165.5 154.1 155.1 149.0 167.1 199.7 188.8 190.7 180.3 212.7 Nov. 2.7 2.8 3.2 2.6 2.3 169.9 158.4 160.1 152.9 170.8 184.0 170.1 168.8 166.2 187.4 Dec. 2.1 2.1 2.6 1.4 1.9 173.4 161.7 164.3 155.1 174.1 173.4 161.7 164.3 155.1 174.1



1997 Jan. 8.9 13.7 10.6 17.1 14.4 108.9 113.7 110.6 117.1 114.4 170.4 176.2 169.8 184.8 174.2 Feb. 17.0 18.8 25.2 12.3 16.7 127.4 135.0 138.5 131.5 133.5 193.0 205.4 208.6 204.0 199.1 Mar. 52.6 30.7 31.4 27.5 38.4 194.4 176.5 182.0 167.7 184.8 286.5 264.0 270.2 256.2 266.9 Apr. 5.2 6.9 5.5 7.9 9.3 204.5 188.7 192.0 180.9 202.0 289.6 276.8 278.3 272.8 286.4 May 5.8 4.3 2.8 6.4 3.3 216.4 196.7 197.3 192.5 208.6 295.4 274.0 267.5 279.4 284.9 Jun. 4.4 2.3 1.0 2.4 6.6 225.9 201.2 199.3 197.1 222.4 297.8 277.4 268.7 282.0 299.2 Jul. 1.5 0.7 –0.5 1.7 1.6 229.3 202.6 198.3 200.5 225.9 267.1 259.8 253.8 260.9 280.5 Aug. 0.6 3.5 3.9 2.7 4.8 230.7 209.8 206.1 206.0 236.8 256.4 259.1 258.6 255.1 275.2 Sep. 2.5 3.3 2.1 3.2 7.8 236.5 216.7 210.4 212.6 255.3 252.6 261.4 258.0 257.9 286.9 Oct. 1.7 6.5 6.0 6.0 9.4 240.5 230.7 223.1 225.3 279.3 251.8 269.2 263.9 265.1 303.6 Nov. 3.4 4.3 4.1 4.1 5.1 248.7 240.6 232.2 234.6 293.5 255.0 265.4 259.8 258.5 309.9 Dec. 2.1 4.5 5.8 3.4 3.5 254.3 251.4 245.6 242.6 303.9 254.3 251.4 245.6 242.6 303.9

1998 Jan. 3.0 4.9 4.5 2.8 11.6 103.0 104.9 104.5 102.8 111.6 224.2 231.9 232.0 213.0 296.4 Feb. 2.7 7.2 7.7 7.0 6.2 105.8 112.4 112.5 110.0 118.6 200.3 209.3 199.6 202.8 269.9 Mar. 1.7 3.8 2.5 5.2 3.8 107.6 116.6 115.3 115.7 123.1 134.7 166.1 155.6 167.4 202.4 Apr. 2.2 2.7 2.1 2.3 5.7 109.9 119.8 117.8 118.3 130.1 131.0 159.6 150.7 158.7 195.8 May 1.4 2.3 0.7 4.1 2.2 111.5 122.5 118.6 123.2 133.0 127.6 156.6 147.6 155.3 193.6 Jun. 0.8 1.3 0.0 2.6 1.6 112.4 124.1 118.5 126.4 135.1 125.5 155.0 146.0 155.6 184.5 Jul. 0.2 1.3 –1.0 2.6 4.5 112.6 125.7 117.4 129.7 141.2 123.5 156.0 145.3 156.9 189.7 Aug. 0.7 0.6 –1.0 1.9 1.9 113.4 126.5 116.3 132.2 143.8 123.1 151.7 138.5 155.7 184.5 Sep. 1.3 2.7 2.7 1.8 5.1 114.9 130.0 119.3 134.5 151.2 122.4 150.8 139.3 153.5 180.0 Oct. 1.2 3.9 1.6 5.1 6.5 116.2 135.0 121.3 141.4 161.1 122.0 147.1 133.6 152.2 175.3 Nov. 1.7 1.9 1.8 1.9 2.3 118.2 137.6 123.4 144.0 164.8 120.5 143.8 130.6 148.9 170.5 Dec. 1.3 2.2 2.5 1.9 2.1 119.8 140.6 126.5 146.8 168.2 119.8 140.6 126.5 146.8 168.2

Average monthly change Annual average index1990 8.1 2.7 2.0 3.4 2.8 254.1 137.7 126.5 149.0 139.5 126.9 105.1 104.5 105.5 105.5 1991 11.5 10.3 12.0 9.0 9.1 350.5 322.8 387.7 281.0 285.4 320.1 270.2 286.2 267.8 235.7 1992 6.1 9.6 10.2 9.3 8.4 204.0 299.2 319.7 289.5 262.7 284.8 310.4 336.6 294.2 280.4 1993 9.6 12.1 11.6 12.9 11.8 295.4 395.5 371.2 428.6 382.8 265.0 356.1 348.9 369.0 340.3 1994 4.8 4.1 4.2 3.7 4.7 173.4 161.7 164.3 155.1 174.1 240.5 236.7 236.2 232.8 250.8 1995 2.3 2.1 1.9 2.0 2.9 132.0 127.8 125.6 126.5 140.4 135.1 132.3 131.9 129.6 142.7 1996 4.1 3.8 3.7 4.0 3.6 160.4 156.9 155.2 160.3 153.6 149.9 138.8 136.4 139.1 146.9 1997 8.1 8.0 7.8 7.7 9.7 254.3 251.4 245.6 242.6 303.9 256.6 254.8 251.4 252.5 276.5 1998 1.5 2.9 2.0 3.3 4.4 119.8 140.6 126.5 146.8 168.2 133.2 159.1 148.4 160.2 192.1

Source: National Commission for Statistics.1) Based on data published by National Commission for Statistics.Note: Starting January 1998, the producer price index is calculated for domestic output.

17*

Annual Report 1998

6a. GOVERNMENT

Period REVENUES EXPENDITURESTotal Current revenues Capital Total of which:

Total Tax revenues Non-tax revenues Education, HealthcareTotal of which: revenues culture

Profit tax Wage tax VAT and excises

Customs duties

Jan.97 2,128.0 2,127.0 2,063.9 375.5 567.2 806.5 276.9 63.0 1.0 2,465.7 253.7 236.0 Feb. 4,224.9 4,221.7 4,012.5 662.3 1,112.1 1,654.0 505.4 209.2 3.2 4,565.6 573.5 416.2 Mar. 6,469.8 6,465.0 6,131.7 929.4 1,729.3 2,626.1 714.8 333.3 4.8 8,452.2 1,064.4 722.1 Apr. 9,962.2 9,891.0 9,482.1 2,324.7 2,446.6 3,538.1 969.9 408.9 71.2 12,395.8 1,541.9 995.5 May 13,944.8 13,729.6 13,101.3 3,736.2 3,267.5 4,630.0 1,184.9 628.3 215.1 16,255.6 2,093.3 1,484.5 Jun. 17,222.9 16,880.3 16,159.6 4,724.6 3,923.5 5,764.6 1,409.6 720.7 342.6 20,371.6 2,998.7 1,829.8 Jul. 20,728.0 20,312.4 19,441.5 5,791.7 4,523.8 7,034.0 1,690.3 871.0 414.9 26,022.0 3,537.4 2,142.6 Aug. 24,429.5 23,912.8 22,914.8 6,877.2 5,344.3 8,347.4 1,890.5 998.0 515.9 30,258.6 3,923.9 2,467.1 Sep. 28,814.7 28,183.3 27,083.0 7,843.5 6,309.6 10,212.4 2,206.6 1,100.2 630.6 34,703.0 4,484.9 2,845.9 Oct. 33,624.2 32,352.1 31,158.3 8,758.0 7,195.2 12,076.5 2,552.6 1,193.8 1,270.0 39,384.5 5,162.0 3,203.9 Nov. 38,150.9 36,554.8 35,281.6 9,615.6 8,112.6 13,957.2 2,929.5 1,273.3 1,578.0 44,717.7 6,090.8 3,595.3 Dec. 43,834.5 41,496.7 40,051.0 10,638.9 9,301.1 15,910.0 3,352.7 1,445.7 2,284.9 52,896.6 8,010.4 4,418.8 Jan.98 5,404.6 4,757.7 4,643.1 1,309.2 1,121.7 1,840.2 256.1 114.6 609.3 5,359.2 714.9 337.0 Feb. 9,628.9 8,328.6 8,097.5 1,952.9 1,655.0 3,660.8 581.6 231.1 781.3 10,436.8 1,545.1 768.2 Mar. 13,890.2 12,427.1 12,059.1 2,544.9 2,178.1 5,892.3 983.7 368.0 913.8 16,770.4 2,566.2 1,310.6 Apr. 19,906.5 17,832.1 17,238.7 4,378.3 2,821.4 7,831.5 1,352.2 593.5 1,504.3 24,972.0 3,429.2 1,778.2 May 24,539.9 22,357.4 21,465.2 4,902.1 3,653.8 9,966.4 1,749.3 892.2 1,584.5 30,427.5 4,436.4 2,469.7 Jun. 30,095.1 26,959.3 25,895.1 5,330.4 4,475.6 12,486.0 2,109.6 1,064.3 2,049.6 37,124.7 6,014.7 3,035.3 Jul. 36,210.1 32,677.5 31,445.8 6,935.9 5,373.7 14,903.6 2,512.6 1,231.7 2,415.4 43,054.4 6,780.2 1,889.5 Aug. 41,195.3 37,426.2 36,010.9 7,451.7 6,337.3 17,502.4 2,886.7 1,415.4 2,624.6 47,491.7 7,571.9 1,283.5 Sep. 47,148.8 43,185.1 41,576.1 7,866.3 7,182.7 21,049.5 3,377.2 1,609.1 2,789.6 54,403.9 8,513.3 1,753.4 Oct. 54,517.4 50,452.2 48,733.5 9,693.5 8,027.8 24,656.4 4,062.2 1,718.7 2,875.9 61,897.9 9,549.4 2,042.8 Nov. 60,160.2 56,024.8 54,123.6 10,358.6 8,889.4 27,697.5 4,833.6 1,901.3 2,929.5 68,230.1 10,740.3 2,381.9 Dec. 67,215.5 62,681.0 60,677.9 10,845.6 10,094.9 30,924.5 5,741.4 2,003.1 3,228.1 77,616.6 12,268.1 3,183.9 Source: Ministry of Finance.

6b. LOCAL

Period REVENUESTotal of which:

Own revenues Amounts SubsidiesTotal Tax revenues Non- Capital broken from the

Total of which: tax revenues down from governmentProfit Taxes and Taxes and Agricultural revenues wage tax budgettax duties from

populationduties from legal entities

income tax for local budgets

Jan.97 359.5 104.2 79.8 2.4 35.2 19.0 3.0 21.2 3.2 140.9 111.2 Feb. 877.3 236.2 176.6 4.9 78.4 40.8 5.5 51.8 7.7 321.4 311.6 Mar. 1,506.8 409.9 319.0 7.7 127.5 100.8 8.3 78.1 12.8 538.2 548.9 Apr. 2,208.7 543.6 421.3 16.6 166.4 124.8 10.5 105.3 17.0 790.4 863.0 May 3,002.6 675.3 507.4 34.9 195.6 138.2 12.5 146.8 21.0 1,089.0 1,225.1 Jun. 3,954.3 876.7 675.3 67.1 234.9 195.3 13.8 175.8 25.6 1,551.2 1,509.5 Jul. 5,001.6 1,021.6 785.0 81.1 273.8 215.2 14.9 204.9 31.6 2,106.6 1,852.0 Aug. 5,937.5 1,159.4 887.4 99.1 310.2 231.0 15.9 234.8 37.2 2,554.8 2,198.2 Sep. 6,928.2 1,387.4 1,071.3 114.9 355.8 290.6 17.0 270.1 45.9 2,985.0 2,521.6 Oct. 7,943.5 1,569.5 1,209.4 123.1 409.1 316.1 18.5 307.2 52.9 3,486.5 2,851.8 Nov. 8,948.6 1,720.3 1,321.5 128.4 445.9 340.4 20.0 339.3 59.6 2,106.6 3,204.1 Dec. 10,468.5 1,984.2 1,522.9 140.7 489.2 414.4 20.7 391.9 69.3 4,644.6 3,790.2 Jan.98 846.9 151.8 109.5 9.1 59.6 20.4 0.4 37.2 5.1 370.9 316.5 Feb. 1,927.3 338.3 235.2 14.4 135.4 45.3 1.4 86.6 16.4 840.2 736.5 Mar. 3,212.3 705.8 512.0 25.0 262.7 152.3 2.5 170.2 23.7 1,319.5 1,174.8 Apr. 4,315.2 946.9 672.6 56.2 343.3 182.6 2.9 236.4 38.9 1,799.2 1,503.1 May 5,381.0 1,177.3 811.7 78.4 420.1 202.7 3.5 319.5 46.0 2,211.7 1,918.5 Jun. 6,461.9 1,481.8 1,049.6 89.2 527.2 289.3 3.5 378.3 54.0 2,625.7 2,275.0 Jul. 7,494.1 1,784.1 1,294.0 175.9 614.3 323.0 3.8 429.5 60.5 2,977.8 2,643.5 Aug. 8,379.5 1,981.9 1,421.9 179.2 693.8 341.7 3.7 491.6 68.4 3,255.7 3,037.0 Sep. 9,463.7 2,292.6 1,665.9 183.7 807.4 436.9 4.0 548.0 78.6 3,592.6 3,463.2 Oct. 10,628.9 2,569.8 1,873.8 221.6 918.4 470.9 4.1 606.5 89.5 4,038.9 3,898.6 Nov. 11,798.9 2,812.0 2,053.9 219.2 1,033.7 500.5 4.3 660.2 97.9 2,977.8 4,376.3 Dec. 13,453.0 3,326.8 2,475.9 221.7 1,295.6 594.6 4.4 732.9 117.9 4,998.0 5,054.5 Source: Ministry of Finance.

18*

Statistical Section

BUDGET- billions of lei; cumulative from the beginning of the year -

BALANCE Period

Pensions and National Public Public Scientific Economic activities Transfers Interestsallowances defence order authorities research Total of which: from related

Industry Agriculture, forestry

Transports & tele-communications

government budget

to public debt

121.2 115.7 120.6 57.8 2.4 737.7 138.9 494.6 75.1 210.8 585.1 –337.7 Jan.97247.7 282.7 252.7 153.7 15.1 1,363.9 319.5 839.2 168.5 514.7 677.0 –340.7 Feb.612.3 700.0 484.4 298.1 53.0 1,807.3 467.8 1,047.8 243.5 1,004.8 1,234.4 –1,982.5 Mar.948.2 1,138.4 685.3 418.7 102.6 2,231.8 622.3 1,198.3 340.3 1,403.8 2,412.6 –2,433.6 Apr.

1,327.8 1,476.7 880.8 620.9 134.6 2,705.8 787.3 1,307.9 509.2 1,835.1 3,115.4 –2,310.9 May 1,684.9 1,898.7 1,153.0 809.0 179.9 3,305.0 1,007.6 1,464.8 696.2 2,203.1 3,588.9 –3,148.7 Jun.2,037.8 2,287.4 1,361.6 946.5 225.4 3,859.5 1,173.8 1,598.9 918.8 2,591.4 6,129.3 –5,294.0 Jul.2,394.0 2,665.2 1,577.0 1,049.5 256.3 4,335.3 1,331.1 1,707.1 1,086.8 3,037.8 7,204.8 –5,829.1 Aug.2,799.6 3,145.9 1,964.1 1,200.0 329.4 4,802.3 1,441.7 1,850.8 1,244.7 3,538.2 7,652.4 –5,888.3 Sep.3,253.3 3,613.5 2,218.0 1,350.4 408.1 5,406.3 1,513.4 2,170.7 1,401.9 4,364.3 8,389.5 –5,760.3 Oct.3,690.9 4,011.4 2,469.3 1,509.4 535.0 6,377.4 1,578.7 2,945.9 1,499.1 5,820.1 8,519.5 –6,566.9 Nov.4,197.1 4,738.9 2,803.2 1,857.9 762.5 7,778.9 1,930.2 3,664.6 1,770.9 6,862.1 9,214.6 –9,062.1 Dec.

448.8 373.7 297.0 102.9 6.6 300.9 133.4 40.0 108.9 505.5 2,217.3 +45.4 Jan.98904.4 877.8 615.3 279.9 35.1 773.5 343.6 135.9 264.4 1,050.3 3,460.7 –807.9 Feb.

1,366.7 1,278.8 961.3 460.6 76.1 1,515.6 478.1 510.2 486.2 1,767.4 5,262.1 –2,880.1 Mar.1,914.4 1,679.5 1,265.1 660.9 187.8 2,693.0 635.5 1,352.5 651.9 2,485.3 8,603.9 –5,065.5 Apr.2,482.1 2,173.5 1,622.9 867.4 229.8 3,480.8 793.2 1,809.6 812.6 3,035.8 9,245.4 –5,887.5 May 3,047.7 2,678.5 2,023.3 1,119.9 317.7 4,169.1 947.7 2,141.9 971.9 4,239.4 9,973.9 –7,029.6 Jun.3,623.7 3,143.3 2,526.6 1,344.0 386.1 5,142.2 1,168.0 2,462.4 1,304.1 4,993.0 12,660.4 –6,844.3 Jul.4,202.7 3,726.9 2,984.0 1,560.9 447.6 5,786.8 1,301.1 2,693.2 1,513.3 5,539.5 13,675.8 –6,296.5 Aug.4,776.6 4,518.4 3,429.9 1,830.9 582.7 6,846.4 1,469.2 3,147.0 1,890.0 6,138.7 14,079.8 –7,255.2 Sep.5,374.5 5,159.3 3,948.9 2,072.4 705.7 7,855.0 1,657.3 3,507.8 2,243.0 6,702.1 15,815.5 –7,380.5 Oct.6,003.9 5,750.6 4,496.2 2,321.7 814.1 8,976.1 1,856.9 3,992.1 2,604.9 7,394.4 16,251.6 –8,069.9 Nov.6,815.7 6,707.6 5,205.1 2,866.9 1,049.7 10,682.6 2,057.9 4,539.8 3,357.5 8,396.9 16,611.5 –10,401.0 Dec.

BUDGETS 6c. SOCIAL - billions of lei; cumulative from the beginning of the year - SECURITY

EXPENDITURES BALANCE BUDGETTotal of which:

Social Public Public Economicand services & authorities activi- - billions of lei;cultural develop- ties cumulative from the beginning of the year -expendi- ment, Period REVENUES EXPEN- BALANCEtures housing,

water supply

DITURES

276.9 104.8 100.7 13.0 54.7 +82.7 Jan.97 581.0 612.2 –31.2741.6 262.5 288.3 44.9 137.9 +135.7 Feb. 1,200.6 1,236.3 –35.71,353.7 455.6 550.6 87.7 242.7 +153.1 Mar. 1,919.0 2,437.6 –518.52,047.9 660.4 864.6 136.9 360.8 +160.8 Apr. 2,670.3 3,380.8 –710.52,823.7 879.0 1,234.3 184.9 491.9 +178.9 May 3,548.9 4,356.6 –807.73,729.4 1,203.4 1,574.8 242.8 664.4 +224.9 Jun. 4,480.0 5,519.4 –1,039.44,714.3 1,541.6 1,929.0 314.7 870.8 +287.3 Jul. 5,386.0 6,599.0 –1,213.05,553.9 1,833.1 2,226.7 377.9 1,048.6 +383.6 Aug. 6,426.2 7,712.0 –1,285.86,465.1 2,159.2 2,511.6 447.0 1,268.9 +463.1 Sep. 7,562.0 9,095.9 –1,533.97,523.2 2,502.1 2,885.5 533.6 1,510.8 +420.3 Oct. 9,072.4 10,453.5 –1,381.08,508.3 2,801.6 3,247.9 620.1 1,734.0 +440.4 Nov. 11,265.1 11,837.0 –571.810,370.5 3,332.5 4,042.5 822.2 2,041.0 +98.0 Dec. 13,164.2 13,221.9 –57.7720.5 235.3 299.3 45.9 134.9 +126.4 Jan.98 1,232.9 1,391.4 –158.51,761.9 566.7 713.1 147.8 321.4 +165.5 Feb. 2,447.9 2,818.9 –371.02,957.5 936.4 1,200.9 260.6 534.4 +254.8 Mar. 3,813.3 4,241.5 –428.24,044.3 1,270.7 1,610.7 387.8 741.3 +270.9 Apr. 5,334.5 5,933.2 –598.75,114.7 1,580.8 2,056.7 498.9 934.8 +266.3 May 6,725.0 7,593.7 –868.76,208.6 1,910.0 2,473.1 629.4 1,142.9 +253.2 Jun. 8,754.3 9,306.9 –552.66,986.7 1,909.9 2,869.9 768.8 1,373.8 +507.5 Jul. 10,442.4 11,120.4 –677.97,898.3 1,974.8 3,313.4 901.8 1,632.8 +481.2 Aug. 11,913.7 13,155.4 –1,241.79,004.3 2,206.8 3,739.4 1,053.3 1,916.8 +459.5 Sep. 13,282.9 14,924.0 –1,641.110,208.0 2,479.2 4,216.8 1,234.1 2,169.6 +420.9 Oct. 15,000.2 17,073.3 –2,073.111,391.6 2,763.6 4,677.1 1,423.0 2,399.4 +407.3 Nov. 20,799.5 23,742.9 –2,943.313,379.2 3,175.7 5,531.8 1,794.0 2,719.2 +73.8 Dec. 23,382.9 26,537.8 –3,155.0

Source: Ministry of Finance.

19*

7. BALANCE OF PAYMENTSAnnual Report 1998 Statistical Section

- millions of USD -ITEM 1995 1996

Credit Debit Balance Credit Debit Balance1. CURRENT ACCOUNT (A+B+C) 9,964 11,738 –1,774 10,402 12,973 –2,571A. Goods and Services 9,404 11,306 –1,902 9,648 12,503 –2,855

a. Goods fob (exports/imports ) 7,910 9,487 –1,577 8,085 10,555 –2,470 b. Services 1,494 1,819 –325 1,563 1,948 –385

– Transports 471 604 –133 572 692 –120 – Tourism 590 697 –107 529 666 –137 – Other 433 518 –85 462 590 –128

B. Incomes 81 322 –241 79 388 –309– Compensation of employees 5 1 4 8 2 6 – Direct investment income 6 28 –22 5 24 –19 – Portfolio investment income 6 0 6 1 17 –16 – Other capital investment (interests) 64 293 –229 65 345 –280 C. Current transfers 479 110 369 675 82 593

– Government sector 92 29 63 70 23 47 – Other sectors 387 81 306 605 59 546

2. CAPITAL AND FINANCIAL ACCOUNT (A+B) 4,931 3,615 1,316 5,206 2,992 2,214 A. Capital account 242 0 242 152 0 152

a. Capital transfers 242 0 242 152 0 152 – Government sector 228 0 228 152 0 152 – Other sectors 14 0 14 0 0 0

b. Purchases/Sales of non-produced – non-financial assets 0 0 0 0 0 0 B. Financial account 4,689 3,615 1,074 5,054 2,992 2,062

a. Direct investment 420 3 417 265 2 263 – Abroad 0 2 –2 0 0 0 – In Romania 420 1 419 265 2 263

b. Portfolio investment 66 34 32 1,222 0 1,222 – Assets 12 34 –22 0 0 0 – Liabilities 54 0 54 1,222 0 1,222

c. Other capital investment 3,832 2,908 924 3,218 2,408 810 – Assets 1,297 1,112 185 679 953 –274

1. Long–term loans and credits 10 67 –57 1 21 –20 2. Short–term loans and credits 19 28 –9 13 17 –4 3. Long– term outstanding exports bills 127 68 59 52 41 11 4. Short–term outstanding exports bills 344 450 –106 478 438 40 5. Cash and cheques 26 29 –3 7 12 –5 6. Residents' deposits abroad 463 186 277 88 363 –275 7. Other assets 308 284 24 40 61 –21

– long–term 0 0 0 0 0 0 – short–term 308 284 24 40 61 –21

– Liabilities 2,535 1,796 739 2,539 1,455 1,084 1. Credits and loans from the Fund 56 371 –315 0 356 –356 2. Long–term loans and credits 1,342 325 1,017 1,415 510 905 3. Short–term loans and credits 184 78 106 67 150 –83 4. Long–term outstanding imports bills 234 153 81 293 214 79 5. Short–term outstanding imports bills 596 669 –73 425 206 219 6. Cash and cheques 0 0 0 0 0 0 7. Non–residents deposits in Romania 123 198 –75 338 19 319 8. Other liabilities 0 2 –2 1 0 1

– long–term 0 0 0 0 0 0 – short–term 0 2 –2 1 0 1

d. In transit accounts 27 78 –51 42 0 42 e. Barter and clearing accounts 17 522 –505 4 62 –58 f. Reserve assets (NBR) 327 70 257 303 520 –217

– Monetary gold 0 0 0 0 0 0 – SDRs 48 49 –1 53 1 52 – Reserve position with the IMF 0 0 0 0 0 0 – Foreign exchange 279 21 258 250 519 –269 – Other assets 0 0 0 0 0 0

3. NET ERRORS AND OMISSIONS 458 0 458 357 0 357 TOTAL GROSS 15,353 15,353 15,965 15,965 *) provisional data

20*

7. BALANCE OF PAYMENTSAnnual Report 1998 Statistical Section

- millions of USD -1997 1998* ITEM

Credit Debit Balance Credit Debit Balance10,889 13,026 –2,137 10,424 13,434 –3,010 1. CURRENT ACCOUNT (A+B+C)9,955 12,349 –2,394 9,508 12,622 –3,114 A. Goods and Services 8,431 10,411 –1,980 8,300 10,911 –2,611 a. Goods fob (exports/imports )1,524 1,938 –414 1,208 1,711 –503 b. Services

588 565 23 504 629 –125 – Transports526 681 –155 260 451 –191 – Tourism410 692 –282 444 631 –187 – Other204 526 –322 166 679 –513 B. Incomes

14 1 13 45 6 39 – Compensation of employees4 30 –26 13 154 –141 – Direct investment income0 76 –76 1 111 –110 – Portfolio investment income

186 419 –233 107 408 –301 – Other capital investment (interests)730 151 579 750 133 617 C. Current transfers

82 18 64 73 21 52 – Government sector648 133 515 677 112 565 – Other sectors

6,958 5,918 1,040 6,633 4,005 2,628 2. CAPITAL AND FINANCIAL ACCOUNT (A+B)43 0 43 0 0 0 A. Capital account43 0 43 0 0 0 a. Capital transfers43 0 43 0 0 0 – Government sector

0 0 0 0 0 0 – Other sectors0 0 0 0 0 0 b. Purchases/Sales of non-produced – non-financial assets

6,915 5,918 997 6,633 4,005 2,628 B. Financial account1,229 5 1,224 2,063 23 2,040 a. Direct investment

9 0 9 11 2 9 – Abroad1,220 5 1,215 2,052 21 2,031 – In Romania1,067 184 883 498 368 130 b. Portfolio investment

10 16 –6 20 19 1 – Assets1,057 168 889 478 349 129 – Liabilities4,433 3,876 557 3,224 3,578 –354 c. Other capital investment1,128 1,166 –38 570 352 218 – Assets

2 26 –24 10 25 –15 1. Long–term loans and credits111 135 –24 122 86 36 2. Short–term loans and credits

92 55 37 95 57 38 3. Long– term outstanding exports bills344 249 95 182 169 13 4. Short–term outstanding exports bills

20 24 –4 0 15 –15 5. Cash and cheques332 584 –252 129 0 129 6. Residents' deposits abroad227 93 134 32 0 32 7. Other assets

0 0 0 0 0 0 – long–term227 93 134 32 0 32 – short–term

3,305 2,710 595 2,654 3,226 –572 – Liabilities164 136 28 0 126 –126 1. Credits and loans from the Fund

2,220 1,212 1,008 1,590 1,313 277 2. Long–term loans and credits29 97 –68 328 464 –136 3. Short–term loans and credits

310 366 –56 341 449 –108 4. Long–term outstanding imports bills412 561 –149 395 719 –324 5. Short–term outstanding imports bills

0 0 0 0 0 0 6. Cash and cheques170 336 –166 0 155 –155 7. Non–residents deposits in Romania

0 2 –2 0 0 0 8. Other liabilities0 0 0 0 0 0 – long–term0 2 –2 0 0 0 – short–term

75 85 –10 0 28 –28 d. In transit accounts44 36 8 5 8 –3 e. Barter and clearing accounts67 1,732 –1,665 843 0 843 f. Reserve assets (NBR)

0 0 0 0 0 0 – Monetary gold47 149 –102 102 0 102 – SDRs

0 0 0 0 0 0 – Reserve position with the IMF20 1,583 –1,563 741 0 741 – Foreign exchange

0 0 0 0 0 0 – Other assets

1,097 0 1,097 382 0 382 3. NET ERRORS AND OMISSIONS18,944 18,944 17,439 17,439 TOTAL GROSS

21*


8a. INTERNATIONAL INVESTMENT POSITION- millions of USD; end of period -

Period Reserve foreign assets Foreign Medium- and long-term foreign debtin the banking system assets in A. By creditorTotal Monetary SDR Convertible months Total Multilateral Bilateral

gold holdings currencies of Total of which: Total of which:imports IMF EU IBRD EBRD China

1994 Jan. 1,824.9 898.7 1.9 924.3 1.8 3,423.0 2,032.2 1,034.9 509.7 408.4 62.2 733.0 134.6 Feb. 1,817.1 902.2 1.2 913.7 1.8 3,490.1 2,053.4 1,043.8 512.1 411.0 69.5 753.4 137.0 Mar. 1,878.6 922.2 1.0 955.4 1.9 3,563.9 2,098.9 1,060.5 522.5 418.7 80.2 764.1 137.8 Apr. 1,925.5 893.7 1.2 1,030.6 2.0 3,578.3 2,120.9 1,061.2 524.7 423.1 92.7 761.5 128.0 May 2,382.1 981.2 89.4 1,311.5 2.5 3,982.8 2,510.5 1,382.8 532.6 473.8 101.6 762.7 129.9 Jun. 2,600.6 1,003.4 91.3 1,505.9 2.9 4,103.7 2,590.9 1,399.1 552.2 513.5 111.2 779.0 131.6 Jul. 2,677.8 1,002.6 91.9 1,583.3 3.0 4,183.5 2,609.0 1,381.0 552.7 530.0 106.7 814.5 122.7 Aug. 2,751.0 1,002.1 74.4 1,674.5 3.2 4,196.3 2,629.3 1,388.2 547.0 547.5 108.3 806.4 112.0 Sep. 2,722.4 1,028.3 74.6 1,619.5 3.1 4,281.9 2,687.5 1,404.6 562.3 567.8 113.8 823.9 115.6 Oct. 2,870.8 1,011.8 75.9 1,783.1 3.4 4,335.6 2,703.1 1,391.5 580.1 573.0 118.5 833.3 94.0 Nov. 2,976.7 1,007.2 73.9 1,895.6 3.6 4,338.9 2,693.3 1,356.0 554.3 624.6 119.8 854.6 89.0 Dec. 3,092.2 1,006.2 55.5 2,030.5 3.1 4,596.8 2,715.4 1,312.8 549.6 667.5 136.7 881.3 88.8

1995 Jan. 3,051.9 986.9 56.2 2,008.8 4.0 4,690.1 2,752.6 1,307.8 567.3 673.1 149.7 908.9 92.4 Feb. 2,982.0 993.2 36.5 1,952.3 3.3 4,753.8 2,784.9 1,301.9 576.2 695.2 156.1 921.3 93.4 Mar. 2,902.1 1,021.6 37.8 1,842.7 2.9 4,918.3 2,869.0 1,319.9 601.4 720.2 163.8 951.7 102.1 Apr. 2,839.3 1,036.6 39.0 1,763.7 2.8 4,969.4 2,915.8 1,332.6 605.9 731.6 174.1 960.8 102.1 May 2,749.3 1,025.6 37.8 1,685.9 2.5 4,913.5 2,859.2 1,266.8 604.2 735.4 181.3 949.4 87.8 Jun. 2,811.3 1,037.3 22.6 1,751.4 2.2 4,934.2 2,861.4 1,261.6 603.5 742.7 182.1 959.3 87.5 Jul. 2,712.2 1,031.8 23.7 1,656.7 1.9 4,957.5 2,839.8 1,219.2 608.8 747.1 184.1 968.1 87.3 Aug. 2,595.5 1,026.2 7.8 1,561.5 1.9 4,867.9 2,764.9 1,150.7 579.9 756.4 183.2 949.6 77.3 Sep. 2,599.0 1,030.2 6.7 1,562.1 1.9 4,895.1 2,746.5 1,110.6 590.7 760.9 188.6 965.1 77.3 Oct. 2,374.1 1,028.8 6.8 1,338.5 1.9 4,903.8 2,730.7 1,078.7 596.3 768.1 191.2 974.5 78.7 Nov. 2,483.6 1,045.0 10.1 1,428.5 2.0 4,977.5 2,782.2 1,042.7 659.0 784.2 198.7 953.7 58.8 Dec. 2,625.1 1,046.1 56.1 1,522.9 1.9 5,482.1 2,786.6 1,039.2 652.6 794.2 203.1 1,204.7 57.4

1996 Jan. 2,488.1 1,096.3 16.9 1,374.9 2.5 5,416.2 2,703.9 977.6 626.8 800.4 205.1 1,216.1 54.9 Feb. 2,421.2 1,079.4 1.5 1,340.3 2.5 5,529.8 2,709.5 956.1 646.1 808.7 203.3 1,250.8 56.2 Mar. 2,600.0 1,101.1 2.6 1,496.3 2.3 5,620.6 2,762.2 912.1 637.5 911.8 206.7 1,259.0 55.0 Apr. 2,458.5 1,078.0 3.5 1,377.0 2.0 5,569.8 2,720.7 863.6 627.2 921.6 209.7 1,239.1 41.2 May 2,800.3 1,084.5 30.6 1,685.2 2.4 6,115.8 2,673.8 795.1 623.9 937.3 209.6 1,228.6 40.2 Jun. 2,931.1 1,062.0 2.8 1,866.3 2.5 6,450.5 2,704.0 784.4 631.1 955.8 224.2 1,233.0 40.5 Jul. 2,923.3 1,070.4 2.8 1,850.1 2.4 6,620.1 2,761.2 783.3 647.9 972.0 245.1 1,262.9 42.2 Aug. 2,779.4 1,082.8 12.6 1,684.0 2.5 6,630.0 2,750.2 752.2 649.9 986.7 248.5 1,264.8 42.7 Sep. 2,722.8 1,066.9 3.0 1,652.9 2.1 6,578.6 2,720.8 722.3 639.7 995.5 247.8 1,257.9 37.8 Oct. 3,143.1 1,069.6 3.1 2,070.4 2.5 7,182.2 2,758.7 716.4 646.8 1,006.9 260.1 1,273.2 37.7 Nov. 3,042.3 1,048.9 32.3 1,961.1 2.3 7,242.6 2,755.4 692.9 645.4 1,015.1 264.0 1,279.3 36.7 Dec. 3,144.3 1,041.5 4.1 2,098.7 2.1 7,208.9 2,720.5 650.9 632.6 1,022.0 278.3 1,301.3 35.8

1997 Jan. 2,772.2 989.1 3.9 1,779.2 2.1 7,164.3 2,694.8 630.4 605.4 1,027.1 287.1 1,260.4 23.8 Feb. 2,766.8 1,000.7 0.9 1,765.2 2.1 7,351.2 2,660.9 607.1 582.9 1,037.0 285.6 1,235.4 22.9 Mar. 2,882.2 993.1 0.9 1,888.2 2.2 7,562.2 2,663.3 594.9 590.5 1,032.7 296.1 1,236.8 22.7 Apr. 3,173.1 974.6 82.0 2,116.5 2.4 7,616.7 2,757.5 669.1 576.3 1,037.0 315.5 1,223.9 22.5 May 3,269.1 992.7 75.8 2,200.6 2.4 7,753.5 2,775.2 670.9 579.7 1,038.9 317.4 1,239.3 23.2 Jun. 3,733.8 980.7 76.1 2,677.0 2.7 8,089.2 2,819.5 630.3 575.3 1,119.6 326.6 1,239.6 22.7 Jul. 4,014.4 953.0 74.1 2,987.3 3.1 7,920.5 2,796.1 615.5 547.2 1,120.6 333.7 1,195.9 15.4 Aug. 4,112.4 956.2 66.8 3,089.5 3.2 7,848.5 2,780.8 600.8 551.5 1,127.6 321.0 1,199.2 14.9 Sep. 4,620.6 961.9 149.3 3,509.4 3.6 8,264.9 3,153.5 686.8 568.4 1,374.8 325.4 1,195.5 15.4 Oct. 4,588.2 936.6 151.2 3,500.4 3.6 8,343.9 3,201.1 691.7 582.9 1,383.1 343.4 1,197.9 15.4 Nov. 4,702.8 889.7 126.0 3,687.1 3.7 8,269.8 3,180.8 669.1 571.8 1,384.9 347.3 1,159.9 15.1 Dec. 4,670.9 867.5 103.9 3,699.5 3.6 8,584.3 3,391.9 641.8 641.0 1,391.7 464.9 1,164.9 15.1

1998 Jan. 4,498.2 913.9 104.1 3,480.2 4.1 8,490.5 3,262.1 642.3 632.3 1,381.1 370.4 1,136.6 14.8 Feb. 4,486.8 900.5 83.2 3,503.1 4.3 8,478.2 3,256.8 629.3 630.1 1,390.8 367.2 1,127.3 14.7 Mar. 4,246.9 935.5 80.2 3,231.2 3.6 8,180.7 3,050.6 624.5 428.2 1,393.1 366.7 1,089.4 14.3 Apr. 4,253.5 959.3 80.5 3,213.7 3.5 8,203.1 3,083.0 625.0 434.2 1,404.5 376.5 1,098.6 14.4 May 4,188.7 944.8 57.6 3,186.3 3.3 8,270.6 3,137.1 607.2 436.9 1,412.2 422.5 1,112.1 14.6 Jun. 4,188.5 918.2 37.1 3,233.2 3.4 8,384.6 3,284.5 581.7 431.8 1,423.9 429.5 1,103.8 14.2 Jul. 4,130.4 920.7 37.3 3,172.4 3.4 8,410.9 3,299.6 583.2 440.0 1,425.9 431.1 1,105.2 14.6 Aug. 4,013.6 891.6 17.2 3,104.8 3.3 8,426.4 3,322.4 567.2 436.1 1,433.7 467.5 1,076.3 14.6 Sep. 3,806.7 934.2 14.6 2,857.9 3.2 8,699.3 3,428.9 582.6 464.0 1,444.7 479.2 1,129.5 15.6 Oct. 3,623.8 936.5 14.9 2,672.4 2.6 8,857.4 3,470.2 598.6 471.3 1,449.4 489.8 1,147.0 16.1 Nov. 3,323.4 947.3 22.5 2,353.6 2.3 8,773.0 3,452.6 552.1 456.3 1,460.9 502.8 1,113.6 15.4 Dec. 3,789.3 924.3 1.2 2,863.8 2.7 9,081.3 3,676.7 538.6 461.3 1,467.0 689.0 1,142.5 15.7

22*


8a. INTERNATIONAL INVESTMENT POSITION

Period






(continued) - millions of USD; end of period -

Private banks Debt securitiesTotal of which: Total of which:

Canada USA Italy Germany Japan Germany France USA United CS First BostonKingdom Germany

173.6 115.0 56.6 51.2 64.6 566.1 115.5 258.7 92.6 56.2 x x 184.8 115.0 60.8 51.1 67.0 591.3 129.9 265.1 92.6 56.2 x x 188.2 115.0 65.5 51.0 68.4 608.3 131.5 281.0 92.6 56.2 x x 199.1 113.1 67.1 49.9 69.0 608.3 128.3 281.9 92.6 56.2 x x 204.0 104.0 71.1 50.5 67.5 621.0 131.2 289.3 92.6 58.4 x x 211.4 102.6 75.3 50.2 71.0 644.9 136.8 302.8 88.2 58.4 x x 217.0 100.8 75.7 51.5 109.4 705.5 136.7 311.2 88.2 59.6 x x 220.6 100.8 76.5 52.1 107.4 706.4 136.1 310.1 88.2 59.8 x x 221.5 94.7 82.3 57.6 109.1 715.8 138.2 314.7 85.5 64.4 x x 225.1 103.9 83.9 68.3 111.3 736.4 136.1 318.8 94.4 64.4 x x 228.5 120.7 81.6 79.5 109.4 731.2 130.9 312.1 97.1 68.5 x x 232.3 138.8 82.7 82.7 107.4 853.6 138.5 314.8 196.8 80.2 x x 236.6 140.9 87.1 93.2 108.5 880.4 142.6 324.4 196.8 82.1 x x 239.6 140.9 87.1 95.0 110.8 890.1 147.2 328.8 196.8 82.1 x x 242.6 140.9 84.9 102.4 122.0 923.3 156.8 341.0 195.2 82.1 x x 243.7 137.3 86.1 103.3 129.0 914.4 150.9 336.0 193.4 82.9 x x 246.2 127.1 90.7 108.6 130.0 915.4 147.4 344.9 192.3 83.4 x x 253.9 124.1 91.4 112.8 127.5 907.2 141.7 344.1 190.0 83.4 x x 254.3 122.4 93.8 117.1 122.4 935.9 141.5 352.3 190.0 103.6 1.7 x 257.4 122.4 91.2 121.5 110.6 932.8 140.3 346.2 187.3 104.1 1.9 x 262.8 116.2 92.9 125.4 107.9 953.2 141.1 355.9 185.6 104.8 2.9 x 262.6 112.8 100.3 130.2 106.3 957.1 141.8 354.9 182.2 104.6 6.4 x 263.3 102.7 103.8 135.3 106.5 950.7 141.3 351.3 172.5 108.0 51.3 x 263.7 97.2 106.8 389.6 104.9 1,175.8 145.7 353.8 168.1 222.0 64.7 x 267.6 115.8 107.7 384.6 101.1 1,170.6 143.5 348.8 178.0 222.5 68.6 x 266.7 132.3 111.4 394.5 103.3 1,248.2 159.4 359.8 178.2 270.5 71.7 x 267.9 132.3 111.4 404.0 101.1 1,274.2 167.7 357.6 177.3 271.3 71.6 x 267.4 130.6 111.3 398.0 102.0 1,261.8 168.6 349.6 174.8 271.3 82.3 x 267.2 120.4 115.1 398.7 99.1 1,356.0 180.5 342.6 176.1 358.0 575.8 x 267.4 117.4 117.3 403.1 98.4 1,394.9 227.2 343.6 174.6 365.1 820.7 x 267.8 117.4 118.1 427.5 99.4 1,448.5 240.2 367.3 174.8 371.4 829.7 x 267.9 117.4 119.3 427.7 99.4 1,429.1 257.1 364.4 173.6 386.8 853.0 x 267.9 117.4 118.4 426.7 97.6 1,422.9 256.7 353.4 173.9 382.1 845.4 x 267.4 122.3 118.7 438.7 94.7 1,655.7 255.8 384.9 183.7 563.4 1,114.5 x 267.4 127.9 119.3 438.7 95.3 1,662.3 260.7 384.8 188.8 533.8 1,159.0 x 267.1 133.8 117.1 447.5 94.5 1,550.0 279.3 348.4 191.4 423.9 1,224.8 x 294.0 123.2 111.4 429.8 88.5 1,594.6 303.7 367.5 190.0 478.6 1,120.0 x 277.3 121.8 106.9 411.9 86.8 1,678.2 302.0 359.7 257.5 478.6 1,268.8 x 278.2 122.7 107.4 411.8 87.0 1,789.7 299.6 363.6 334.8 477.0 1,354.2 x 278.8 120.9 105.1 402.7 85.0 1,828.2 293.7 362.1 356.6 445.0 1,319.6 x 280.7 119.9 106.1 406.8 92.7 1,812.4 335.6 363.7 345.3 417.4 1,404.9 x 281.5 118.3 106.1 407.8 94.3 1,725.6 330.8 366.8 325.3 365.4 1,767.8 345.2 280.4 118.3 94.2 389.9 90.8 1,735.7 315.1 366.0 337.5 366.5 1,719.8 326.5 280.5 118.3 95.1 392.2 91.1 1,664.2 319.5 375.1 308.2 336.4 1,723.7 330.2 265.0 115.8 98.3 404.0 88.9 1,645.5 321.9 377.2 303.1 386.3 1,739.3 340.7 265.2 112.2 99.8 412.6 89.5 1,648.0 314.5 390.9 302.1 389.0 1,747.4 347.5 265.0 97.8 97.5 402.8 84.8 1,647.9 308.6 382.4 295.9 423.2 1,709.6 339.4 286.5 78.7 96.3 424.7 83.0 1,694.0 249.9 415.6 175.2 423.7 1,755.9 335.3 262.6 77.0 94.6 422.6 82.6 1,688.2 255.8 388.4 181.7 491.4 1,843.8 331.7 262.9 74.7 94.1 418.2 80.6 1,702.3 250.6 387.0 181.7 504.4 1,843.2 329.7 246.0 74.4 87.2 410.7 78.5 1,662.5 245.2 379.7 174.1 478.1 1,837.3 327.3 245.1 74.4 88.7 421.6 78.1 1,633.0 247.0 382.6 172.1 429.3 1,843.3 333.6 245.6 75.1 89.7 435.5 75.0 1,622.3 243.9 384.9 175.0 410.4 1,848.2 336.7 245.4 75.7 88.3 426.5 72.6 1,630.2 237.6 375.8 180.6 393.6 1,814.3 331.2 243.1 75.7 83.9 436.5 69.5 1,637.7 239.4 378.7 192.5 371.9 1,796.5 339.2 225.4 75.7 82.8 427.3 69.0 1,664.1 235.5 379.3 234.8 352.8 1,787.2 335.3 225.8 80.9 88.4 461.4 73.5 1,682.8 247.5 386.4 232.1 346.2 1,850.9 358.2 224.7 77.6 89.8 472.1 84.6 1,654.2 257.4 398.6 238.1 281.8 1,963.2 363.9 224.8 69.6 86.9 455.4 80.5 1,636.1 254.0 387.1 235.0 285.4 1,931.7 352.6 249.7 55.7 87.9 457.9 86.9 1,626.1 260.6 430.8 220.1 256.5 1,871.4 357.8

23*



Period






(continued) - millions of USD; end of period -Medium- and long-term foreign debt (continued)A. By creditor (continued) B. By debtorDebt securities (continued) Supplier credits Other private creditors Total Public Publicly Private com-

Total of which: Total of which: debt guaranteed mercial debtNomura Securities Merrill Lynch Canada Germany USA debt (non-guaranteed)Japan USA

x x 34.2 x 19.8 57.5 0.1 3,423.0 2,362.4 774.8 285.8 x x 34.5 x 20.0 57.5 0.2 3,490.1 2,381.1 810.1 298.9 x x 34.0 x 20.5 58.6 0.2 3,563.9 2,418.8 844.1 301.0 x x 32.7 x 20.6 54.9 0.2 3,578.3 2,419.2 865.7 293.4 x x 33.5 x 20.9 55.1 0.2 3,982.8 2,802.7 882.8 297.3 x x 35.0 x 21.7 53.9 0.2 4,103.7 2,886.7 915.7 301.3 x x 43.5 x 21.7 11.0 0.2 4,183.5 2,929.7 933.6 320.2 x x 42.7 x 21.6 11.5 0.2 4,196.3 2,935.7 941.4 319.3 x x 43.2 x 21.6 11.6 0.2 4,281.9 2,994.7 966.2 320.9 x x 48.4 x 21.4 14.5 0.3 4,335.6 2,987.3 1,009.1 339.2 x x 45.7 x 20.4 14.2 0.3 4,338.9 2,967.8 1,038.7 332.4 x x 130.4 75.9 26.3 16.1 0.3 4,596.8 2,982.7 1,264.7 349.4 x x 131.4 75.9 27.4 16.7 0.3 4,690.1 3,012.4 1,318.2 359.4 x x 138.9 75.9 34.2 18.7 0.3 4,753.8 3,045.4 1,342.0 366.3 x x 151.1 75.9 36.5 23.2 0.3 4,918.3 3,143.7 1,380.0 394.5 x x 154.5 75.9 35.5 24.0 0.4 4,969.4 3,187.9 1,384.7 396.9 x x 162.3 75.9 43.0 27.2 2.9 4,913.5 3,110.4 1,403.6 399.5 x x 174.8 75.9 48.1 31.4 3.1 4,934.2 3,109.7 1,426.7 397.9 x x 178.4 75.9 48.1 33.5 3.2 4,957.5 3,081.2 1,474.3 401.9 x x 183.5 75.9 54.3 35.1 3.3 4,867.9 2,986.2 1,472.5 409.2 x x 188.3 75.9 58.8 39.2 3.3 4,895.1 2,968.9 1,503.1 423.1 x x 194.7 75.9 62.9 40.3 3.3 4,903.8 2,951.7 1,523.3 428.8 x x 197.7 75.9 63.9 41.9 3.3 4,977.5 2,975.9 1,525.0 476.6 x x 196.6 75.9 68.3 53.8 3.5 5,482.1 3,388.4 1,560.1 533.6 x x 205.2 75.9 69.9 51.9 3.5 5,416.2 3,287.6 1,582.3 546.4 x x 193.5 59.6 74.1 56.1 3.5 5,529.8 3,355.4 1,599.2 575.2 x x 195.8 59.6 72.5 58.0 3.7 5,620.6 3,418.1 1,614.5 588.0 x x 198.9 59.6 73.6 67.1 3.8 5,569.8 3,354.6 1,608.3 606.9

477.8 x 211.6 59.6 77.8 69.9 3.8 6,115.8 3,864.7 1,612.4 638.6 474.5 225.0 223.1 59.6 81.3 74.8 4.7 6,450.5 4,087.9 1,637.9 724.7 479.7 225.0 234.9 59.6 90.0 83.0 5.0 6,620.1 4,143.6 1,687.3 789.2 479.6 225.0 245.5 59.6 88.6 87.4 5.5 6,630.0 4,072.7 1,718.4 838.9 470.8 225.0 242.3 59.6 86.0 89.4 5.4 6,578.6 4,020.5 1,722.5 835.6 720.1 225.0 264.6 59.6 96.5 115.6 5.5 7,182.2 4,474.4 1,791.4 916.5 724.9 225.0 264.1 59.6 95.5 122.5 7.6 7,242.6 4,438.8 1,806.4 997.5 719.1 275.0 276.1 59.6 76.9 136.4 15.8 7,208.9 4,326.0 1,848.4 1,034.5 673.2 225.0 348.5 59.6 90.0 146.1 7.7 7,164.3 4,215.3 1,891.9 1,057.0 660.5 370.9 363.3 59.6 86.7 144.7 7.7 7,351.2 4,161.3 2,003.2 1,186.7 661.6 445.9 367.8 59.6 83.5 150.5 7.8 7,562.2 4,158.9 2,119.8 1,283.5 646.5 445.6 352.5 59.6 79.2 135.0 9.2 7,616.7 4,181.3 2,138.7 1,296.7 705.5 446.6 381.7 59.6 79.7 140.1 10.2 7,753.5 4,234.6 2,184.8 1,334.2 717.4 446.8 388.0 59.6 76.9 148.7 9.3 8,089.2 4,572.9 2,174.8 1,341.6 690.8 446.4 323.0 46.0 78.2 150.0 9.2 7,920.5 4,475.6 2,118.6 1,326.3 692.6 446.4 320.1 46.0 76.0 160.5 13.1 7,848.5 4,453.0 2,034.0 1,361.5 676.7 446.1 363.0 46.0 72.4 168.1 14.6 8,264.9 4,827.1 2,065.8 1,372.0 680.8 446.2 368.7 46.0 55.2 180.8 19.4 8,343.9 4,840.9 2,098.0 1,405.0 645.3 445.6 375.9 46.0 54.7 195.7 27.2 8,269.8 4,766.1 2,106.9 1,396.8 631.4 495.4 247.2 46.0 50.0 330.3 44.9 8,584.3 4,815.9 2,037.8 1,730.6 655.3 496.9 205.5 28.5 51.0 354.3 30.7 8,490.5 4,819.1 2,051.7 1,619.6 639.6 496.6 189.1 14.9 49.7 359.5 30.9 8,478.2 4,798.2 2,059.7 1,620.4 623.4 496.3 170.3 0.2 48.5 370.6 29.7 8,180.7 4,569.7 1,974.1 1,636.8 619.7 496.3 168.4 0.2 46.5 376.8 30.2 8,203.1 4,568.9 1,969.5 1,664.6 595.2 507.4 164.4 0.2 46.3 386.5 30.9 8,270.6 4,552.1 1,973.4 1,745.1 576.5 508.0 156.3 – 44.5 395.5 31.8 8,384.6 4,515.4 1,972.2 1,897.0 577.1 508.6 158.1 x 45.4 413.8 34.0 8,410.9 4,539.8 1,972.3 1,898.8 572.4 508.5 155.8 x 44.0 420.7 33.8 8,426.4 4,513.1 1,941.7 1,971.6 610.2 499.8 160.4 x 45.3 446.7 34.7 8,699.3 4,681.2 1,988.4 2,029.7 702.1 501.4 162.2 x 44.5 460.6 42.4 8,857.4 4,779.7 2,020.9 2,056.7 668.4 500.8 176.7 x 42.7 462.3 42.0 8,773.0 4,709.7 2,008.0 2,055.3 720.8 497.7 255.6 x 40.1 509.1 51.6 9,081.3 4,814.4 2,140.3 2,126.6

24*



Period






(continued) - millions of USD; end of period -Short-term commercial claims and liabilitiesTotal Commercial claims Commercial liabilities

Total Cash against Export Received Total Cash against Import Issued Trade Otherdocuments letters guarantees documents letters guaran- related(incasso) of credit (incasso) of credit tees credits

–208.2 374.0 67.1 285.6 21.3 582.2 78.8 272.1 188.1 43.2 x –202.5 460.6 87.3 347.5 25.8 663.1 81.5 239.7 306.2 35.7 x –363.6 441.8 86.4 328.4 27.0 805.4 114.7 331.9 323.8 35.0 x –295.8 463.6 97.3 350.7 15.6 759.4 77.8 330.1 323.0 28.5 x –320.2 497.2 98.7 383.6 14.9 817.4 80.6 397.7 324.8 14.3 x –214.0 581.4 151.4 413.6 16.4 795.4 78.9 371.7 330.6 14.2 x

52.2 670.3 159.5 493.8 17.0 618.1 79.3 203.0 330.7 5.1 x –169.4 602.1 271.1 312.3 18.7 771.5 78.8 362.0 325.4 5.3 x –139.2 650.4 337.2 293.6 19.6 789.6 75.0 384.6 324.4 5.6 x –154.9 638.6 323.2 288.2 27.2 793.5 74.3 390.5 324.6 4.1 x

–81.4 703.7 365.3 312.7 25.7 785.1 64.0 402.7 313.9 4.5 x –388.2 500.9 179.5 293.6 27.8 889.1 61.8 504.8 318.0 4.5 x –470.6 457.8 153.0 286.3 18.5 928.4 58.9 534.2 331.4 3.9 x –392.1 537.8 148.8 373.3 15.7 929.9 59.4 533.7 333.4 3.4 x –496.5 460.8 152.3 294.1 14.4 957.3 60.4 548.4 344.7 3.8 x –515.2 469.2 153.5 298.3 17.4 984.4 73.4 565.8 342.1 3.1 x –425.1 574.1 224.5 327.8 21.8 999.2 84.2 570.0 341.7 3.3 x –414.7 584.2 228.1 329.8 26.3 998.9 114.3 534.4 346.7 3.5 x –423.0 490.3 139.9 326.1 24.3 913.3 90.5 456.9 362.1 3.8 x –337.1 571.4 191.7 357.0 22.7 908.5 93.9 461.0 349.7 3.9 x –404.7 556.0 196.6 335.3 24.1 960.7 142.6 418.1 396.1 3.9 x –432.5 550.8 172.7 339.0 39.1 983.3 141.4 423.5 416.6 1.8 x –507.5 561.9 182.5 345.4 34.0 1,069.4 160.1 503.7 403.7 1.9 x –217.5 606.6 255.9 299.8 50.9 824.1 172.3 545.8 96.7 9.3 x –607.6 526.0 180.0 291.0 55.0 1,133.6 190.6 516.6 424.5 1.9 x –694.3 512.6 207.8 251.3 53.5 1,206.9 204.6 572.9 425.9 3.5 x –117.3 668.9 204.9 379.6 84.4 786.2 222.8 428.9 131.4 3.1 x –495.5 663.9 236.1 345.8 82.0 1,159.4 234.0 433.7 489.0 2.7 x –541.8 657.5 203.3 371.1 83.1 1,199.3 292.0 381.5 521.7 4.1 x –183.6 623.4 182.8 353.2 87.4 807.0 328.8 340.7 131.7 5.8 x –501.6 581.3 180.9 313.3 87.1 1,082.9 380.9 298.2 395.0 8.8 x –715.9 543.9 183.1 285.4 75.4 1,259.8 450.6 362.0 438.6 8.6 x –472.7 477.9 162.6 240.7 74.6 950.6 429.3 374.2 138.5 8.6 x –767.9 550.9 177.1 296.1 77.7 1,318.8 446.6 401.8 461.7 8.7 x –891.5 571.5 180.8 310.7 80.0 1,463.0 474.3 525.5 454.8 8.4 x –561.2 566.9 180.6 321.4 64.9 1,128.1 474.7 410.0 142.6 22.4 78.4 –599.0 484.8 185.9 240.9 58.0 1,083.8 527.1 296.5 157.7 7.9 94.6 –705.0 484.2 186.4 228.6 69.2 1,189.2 552.0 356.5 159.1 7.9 113.7 –622.8 595.4 212.0 306.4 77.0 1,218.2 567.7 352.9 177.0 7.9 112.7 –608.9 539.2 181.5 280.4 77.3 1,148.1 569.7 320.9 125.2 7.9 124.4 –543.9 580.8 209.4 290.4 81.0 1,124.7 580.2 267.0 141.9 7.9 127.7 –553.9 566.1 204.4 282.5 79.2 1,120.0 589.7 245.6 149.9 7.8 127.0 –500.8 534.4 178.4 278.0 78.0 1,035.2 594.2 161.3 145.7 7.7 126.3 –500.1 526.5 190.2 265.5 70.8 1,026.6 601.8 172.7 125.9 8.4 117.8 –501.1 507.6 179.1 254.9 73.6 1,008.7 602.9 189.5 121.4 9.0 85.9 –551.8 480.5 188.3 214.8 77.4 1,032.3 606.4 210.6 128.3 5.6 81.4 –457.6 496.2 183.4 229.4 83.4 953.8 477.1 247.6 143.5 5.7 79.9 –529.4 471.7 185.8 226.2 59.7 1,001.1 471.3 258.3 151.4 34.7 85.4 –405.4 457.2 179.6 214.1 63.5 862.6 436.2 211.4 145.0 28.3 41.7 –416.5 441.6 179.2 198.3 64.1 858.1 437.0 206.7 142.0 29.8 42.6

–59.1 451.6 185.3 197.2 69.1 510.7 141.0 168.2 148.9 37.4 15.2 –157.0 437.6 199.8 165.2 72.6 594.6 204.8 189.3 149.3 35.6 15.6 –184.3 440.3 202.1 168.1 70.1 624.6 212.1 203.4 169.3 22.7 17.1 –139.7 454.0 195.0 189.4 69.7 593.8 198.6 164.9 183.5 21.7 25.1 –193.7 470.4 210.6 192.3 67.5 664.1 215.5 216.9 193.8 12.9 25.0 –202.2 455.8 219.5 175.7 60.6 658.0 214.4 214.5 191.2 13.4 24.5 –207.2 426.0 209.8 165.2 51.0 633.2 209.6 171.4 194.1 31.4 26.7 –169.3 427.2 204.4 170.7 52.1 596.5 219.9 134.8 205.5 18.4 17.9

–92.6 451.1 194.2 182.3 74.6 543.7 224.3 123.0 156.1 21.7 18.6 –134.9 458.5 187.0 179.3 92.1 593.3 231.5 150.6 178.9 15.3 17.0

25*


8b. ARRANGEMENTS WITH EBRD- millions of ECU -

Date of concluding the arrangement

Sector Value Repayment and grace period

A. Government-guaranteed loans 834.01

1 ROMTELECOMLaw No. 59/1992

27-Feb-92 public 142.00 15 years / 3 years

2 PETROMLaw No. 119/1992

14-Sep-92 public 25.38 6.5 years / 1.5 years

3 Banca Agricolã S.A.Law No.125/1992

14-Sep-92 private 65.02 7 years / 1.6 years

4 EUROVISION26-Oct-92 public 0.93 8 years / 0.5 years

5 European roads rehabilitationLaw No. 49/1993

23-Apr-93 public 74.31 13 years / 3 years

6 Wholesale marketLaw No. 126/1994

9-Jun-94 public 23.22 14 years / 5 years

7 Banca Românã pentru Dezvoltare S.A.Gov't Ordinance No. 25/1994

19-Apr-94 private 46.44 10 years / 3 years

8 Banca Românã pentru Dezvoltare S.A. IIGov't Ordinance No. 25/1994

19-Apr-94 public 7.43 3 years / 1/2 years

9 Development of municipal utilitiesLaw No. 121/1995


10 RENELGov't Ordinance No. 6/1996

10-Nov-95 public 78.10 14 years / 5 years

11 Banca Agricolã S.A.Gov't Ordinance No. 6/1996

6-Dec-95 private 13.93 7 years / 1.6 years

12 CFR (Romanian Railways) rehabilitationGov't Ordinance No. 31/1996

23-Jul-96 public 67.44 15 years / 3 years

13 Water supply and distribution system in Jiu ValleyGov't Ordinance No. 34/1996

5-Aug-96 public 23.22 15 years / 3 years

14 Bucharest-Piteºti HighwayGov't Ordinance No. 34/1996


15 N.D.A. restructuring Gov't Ordinance No. 3/1997

20-Nov-96 public 79.79 15 years / 4 years

16 Thermal energy preservation Gov't Ordinance No. 38/1996


17 Municipal utilities IILaw no. 186/1997


B. Loans without Government guarantee 374.87

1 LEVENTIS Iaºi-Bihor 6-Aug-93 private 4.63 7 years / 2 years

2 VIROLITE 2-Dec-93 private 13.31 8 years / 3 years

3 ATHENEE PALACE HOTEL 9-Nov-94 private 13.26 12 years / 2.5 years

4 IT Banca Agricolã S.A. 9-Dec-94 private 6.27 7 years / 2 years

5 BANKCOOP 12-Dec-94 private 4.99 5 years / 1.5 years

6 LEVENTIS Timiº 5-May-95 private 4.00 6.5 years / 1.5 years

7 Banca Ion Þiriac S.A. 27-Jul-95 private 18.58 3 years / 1.5 years

8 ROMPAK 17-Jan-96 private 6.97 5 years / 2.3 years

9 PROMPT S.A. 19-Jun-96 private 3.12 6.5 years / 1.6 years

10 Breweries 8-Oct-96 private 17.65 8 years / 3 years

11 Banca Comercialã Românã - energy preservation 18-Dec-96 public 8.11 4.5 years / 1.5 years

12 VIROLITE - extension 28-Apr-97 private 1.86 3 years / 1.5 years

13 MOBIFON GSM 2-Oct-97 private 89.29 9 years / 3 years

14 ARCTIC 14-Oct-97 private 12.94 7 years / 2 years

15 ROMTELECOM 6-Jan-98 private 92.89 7 years / 2 years

16 EPH Grain 8-Jan-98 private 7.43 7 years / 3 years

17 Continental Hotel 24-Jun-98 private 10.68 10 years / 3 years

18 BANC POST - Convertible subordinated loan 5-Jul-98 private 9.29 10 years with an option for total or partial conversion into shares

19 DANONE SRL 13-Oct-98 private 8.99 5 years / 2years

20 PARMALAT 17-Nov-98 private 5.01 3 years / 1.5 years

21 IRIDE 17-Dec-98 private 18.88 7 years / 3 years

22 SAMSUNG - OÞELINOX 18-Dec-98 private 16.72 7 years / 2 years

26*


(continued) - millions of ECU -


Sector Value Repayment and grace period

C. Capital investment 121.72

1 Banca Ion Þiriac S.A. 9-Apr-93 private 7.00 the EBRD may sell shares to a strategicpartner within 8 years

2 Capital Group S.A. 29-Apr-93 private 1.70 on medium-term, shares will be sold to Romanian/ foreign investors

3 Banca Bucureºti 15-Jun-93 private 1.64 shares will be bought by the Greek party within 5 years

4 EMCOM-SIEMENS 17-Dec-93 private 6.22 the EBRD will sell shares to investment beneficiaries by December 31, 2000

5 Danube Holding LTD 30-Oct-96 private 5.57 an initial 8-year period, with option for 2-year extension

6 Post-privatization fund 16-Sep-97 private 7.77 equity capital for 4 -7 years, afterwards shares may be sold

7 Banca Bucureºti 17-Dec-97 private 1.84 initial terms are mentioned

8 ROMCIM-LAFARGE 21-Jan-98 private 69.90 after 6 years the shares may be sold to a third parties

9 Banca Ion Þiriac S.A. 20-Feb-98 private 2.79 initial terms are mentioned

10 IMGB/FECNE 24-Sep-98 private 17.29 investment in support of privatisation. Equity capital up to 49% of the social

TOTAL 1,330.60 (USD 1,432.46 million)

8c. ARRANGEMENTS WITH IBRD- millions of USD -


Approving law Value Repayment period

A. Public loans 2,416.50

1. FESAL 19-Jan-96 Gov't Ordinance No. 14/23.01.1996 280.00 2001-2015

2. SAL 2-Jun-92 Law No. 63/08.07.1992 400.00 1998-2009

3. Private farmers 15-Jun-92 Law No. 89/22.07.1992 100.00 1998-2009

4. TACI (essential goods imports) 3-Jul-91 Law No. 57/01.08.1991 180.00 1997-2006

5. Healthcare 7-Oct-91 Law No. 79/23.12.1991 150.00 1997-2008

6. Petroleum 1-Jun-94 Gov't Ordinance No. 42/1994 175.60 1999-2014

7. Roads 30-Apr-93 Law No.50/07.07.1993 120.00 1998-2010

8. Education reform 23-May-94 Gov't Ordinance No.24/1994 50.00 1999-2014

9. Industrial development 21-Mar-95 Law No. 68/1995 175.00 2000-2014

10. Labour force and social security 23-Aug-95 Gov't Ordinance No.35/1995 55.40 2000-2015

11. Water supply and distribution 2-Aug-96 Gov't Ordinance No.34/1996 25.00 2002-2016

12. Higher education reform 2-Oct-96 Gov't Ordinance No.2/1997 50.00 2002-2016

13. Social protection 1-Jul-97 Gov't Ordinance No.12/1997 50.00 2002-2017

14 ASAL 1-Jul-97 Gov't Ordinance No.13/1997 350.00 2002-2017

15. Roads II 1-Jul-97 Gov't Ordinance No.23/1997 150.00 2002-2017

16. School rehabilitation 2-Oct-98 Gov't Ordinance No.71/1997 70.00 2002-2017

17. Real Estate Register 23-Jan-98 Gov't Ordinance No.21/1998 25.50 2003-2017

18. Child protection 15-Jul-98 Gov't Ordinance No.63/1998 5.00 2003-2018

19. Cultural heritage 23-Dec-98 Gov't Ordinance No.4/1999 5.00 2004-2018

B. Publicly guaranteed loans 260.00

1. RENEL (Power rehabilitation) 29-Aug-95 Gov't Ordinance No. 41/29.08.1995 110.00 2000-2015

2. SNCFR (Romanian Railway Public Company)

19-Jan-96 Gov't Ordinance No. 12/23.01.1996 120.00 2001-2016

3. General Inspectorate for Communications

20-Jan-96 Gov't Ordinance No. 88/25.08.1998 30.00 2003-2018

8b. ARRANGEMENTS WITH EBRD

27*


9. MONEY MARKET INDICATORS

Period

Deposits Transactions1-week BUBID

1-week BUBOR

Interest-bearing T-bills Discount T-bills

daily average; lei billions

averageinterest rate

(% p.a.)

daily average; lei billions


(% p.a.)


(% p.a.)


(% p.a.)

nominal value;

lei billions


(% p.a.)

nominal value; lei billions

averageyield (% p.a.)

1996 Jan. 1,709.6 48.2 142.3 61.2 – – – – 197.2 45.0

Feb. 1,820.8 50.1 230.4 68.6 – – 44.0 51.4 332.5 45.0

Mar. 1,780.0 50.8 277.7 70.6 – – 650.4 53.5 – –

Apr. 1,900.7 52.8 266.8 68.2 – – 339.0 54.3 – –

May 1,903.0 53.4 281.3 67.2 – – 298.9 53.3 52.3 61.1

Jun. 1,901.6 54.4 270.9 62.8 – – – – 748.7 59.8

Jul. 1,918.7 54.9 332.5 60.5 – – – – 501.0 57.9

Aug. 1,871.1 54.9 292.9 59.4 – – 538.0 50.3 – –

Sep. 1,675.8 56.6 273.8 62.5 – – 650.5 50.2 – –

Oct. 1,741.3 55.4 266.5 61.7 – – 2,629.0 50.5 – –

Nov. 1,946.1 53.9 285.6 60.3 – – 245.8 49.4 – –

Dec. 1,917.0 55.3 342.3 62.1 47.4 51.7 899.4 63.3 – –

1997 Jan. 2,037.1 59.3 342.4 67.5 50.4 55.3 3,065.6 174.3 – –

Feb. 1,690.7 115.6 400.9 208.1 95.6 108.2 250.3 186.0 – –

Mar. 1,985.5 217.8 622.3 294.3 204.4 241.7 899.4 144.0 – –

Apr. 2,435.5 149.6 520.3 161.6 133.1 163.5 3,626.8 172.1 – –

May 2,669.0 101.4 451.8 92.6 92.0 114.3 1,254.1 92.5 – –

Jun. 3,436.2 61.3 511.5 51.7 46.4 59.4 899.4 48.0 – –

Jul. 4,844.2 48.5 893.3 42.0 35.0 48.6 3,626.8 44.0 – –

Aug. 4,790.8 36.6 960.4 37.2 27.5 39.4 1,132.0 60.0 1,979.7 50.9

Sep. 5,820.4 39.9 1,375.8 40.1 35.3 43.8 3,374.5 34.0 988.1 39.0

Oct. 7,540.9 47.2 1,647.5 47.9 42.3 50.6 – – 898.4 45.8

Nov. 8,725.6 64.8 1,065.2 79.6 72.2 88.2 4,500.0 80.0 763.3 87.0

Dec. 8,400.2 90.3 1,258.3 101.4 78.7 102.4 2,448.2 98.6 – –

1998 Jan. 7,429.3 102.7 1,349.5 109.7 94.5 145.3 2,849.0 104.4 – –

Feb. 7,171.8 105.6 1,068.8 108.5 96.8 133.1 2,126.4 90.5 – –

Mar. 8,307.0 93.5 1,456.6 89.8 83.1 105.7 693.0 75.0 – –

Apr. 7,665.1 76.7 1,133.2 77.4 67.8 88.4 4,484.6 69.5 – –

May 7,405.9 52.6 1,073.7 35.7 23.9 51.5 – – 2,911.0 47.9

Jun. 6,726.3 45.5 783.9 51.5 36.3 61.1 – – 1,781.1 41.3

Jul. 5,234.4 41.6 809.6 35.9 26.3 47.8 – – 6,647.0 42.5

Aug. 5,041.8 50.0 819.7 52.2 35.8 59.7 – – 5,014.2 47.9

Sep. 5,572.6 81.9 1,093.6 95.2 66.8 96.2 – – 4,360.7 50.3

Oct. 6,541.3 81.3 1,507.8 84.9 68.4 95.9 – – 4,999.8 57.3

Nov. 7,291.5 105.7 1,915.9 103.6 84.2 113.9 – – 687.7 65.6

Dec. 7,303.7 140.0 1,772.8 132.1 104.3 159.0 4,210.0 76.0 707.7 72.7

*) Until 24 April 1997, government securities were placed through public subscription (fixed interest rate set by the Ministry of Finance).Afterwards, it was superseded by auctions (uniform price).

Interbank operations Government securities (new and roll-over issues)

28*


10. INTEREST RATES APPLIED BY THE NATIONAL BANK OF ROMANIA- percent per annum -

Period on credits on reserve requirementsstructural 1)

auction special 2) preferential 3)

lombard 4) with derogation

non-directed structural

granted according to Law no. 135/1996

average rate

lei reserves with NBR

banks' foreign exchange reserves with NBR

1992 Dec. 70.0 x x 10.1 x x x x 30.6 10.00 x 1993 Dec. 70.0 175.5 x 16.6 250.0 x x x 120.5 10.00 x 1994 Jan. 70.0 185.6 x 21.1 250.0 x x x 136.3 10.00 x

Feb. 70.0 184.4 x 16.1 250.0 x x x 135.6 10.00 x Mar. 70.0 187.5 x 10.3 250.0 x x x 129.0 10.00 x Apr. 70.0 182.6 90.0 28.5 250.0 x x x 117.2 30.00 x May 70.0 170.9 x 28.5 200.0 x x x 108.7 30.00 x Jun. 70.0 141.1 90.0 28.5 200.0 x x x 97.6 30.00 x Jul. 70.0 99.0 x 28.5 200.0 x x x 79.1 30.00 x Aug. 65.0 78.6 x 28.5 160.0 x x x 69.1 30.00 x Sep. 62.0 70.9 62.0 24.0 160.0 x x x 62.9 25.00 x Oct. 58.0 64.5 58.0 23.7 130.0 x x x 58.9 25.00 x Nov. 58.0 66.2 x 23.5 130.0 x x x 60.0 25.00 x Dec. 58.0 66.6 58.0 23.4 130.0 x x x 62.4 25.00 x

1995 Jan. 55.0 64.0 55.0 17.2 105.0 x x x 57.1 18.00 x Feb. 48.5 59.9 50.7 15.5 99.0 x x x 52.9 16.00 x Mar. 44.0 53.7 45.4 15.5 99.0 x x x 47.1 16.00 x Apr. 40.0 48.2 40.0 15.0 99.0 x x x 42.2 15.00 3.00 May 40.0 47.4 40.0 15.0 99.0 x x x 42.0 15.00 3.00 Jun. 40.0 44.5 40.0 14.7 99.0 x x x 41.9 15.00 3.00 Jul. 40.0 43.0 40.0 14.9 99.0 x x x 44.6 15.00 3.00 Aug. 35.0 40.7 35.0 12.3 90.0 x x x 41.4 12.00 3.00 Sep. 35.0 38.1 35.0 12.3 90.0 x x x 40.8 12.00 3.00 Oct. 33.0 37.7 33.0 10.1 90.0 x x x 41.2 9.00 2.00 Nov. 33.0 51.1 42.7 10.1 90.0 x x x 43.3 9.00 2.00 Dec. 35.0 63.9 45.0 10.0 100.0 x x x 47.2 9.10 2.00

1996 Jan. 35.0 65.1 45.0 13.0 100.0 x x x 48.9 10.00 2.00 Feb. 35.0 67.0 45.0 13.0 100.0 x x x 49.7 10.00 2.00 Mar. 35.0 65.1 45.0 13.0 100.0 x x x 47.5 10.00 2.00 Apr. 35.0 60.4 45.0 13.0 90.0 27.5 x x 44.5 12.00 3.00 May 35.0 59.7 45.0 13.0 90.0 28.0 x x 43.0 12.00 3.00 Jun. 35.0 54.2 45.0 13.0 90.0 28.5 x x 42.4 12.00 3.00 Jul. 35.0 49.0 45.0 13.0 90.0 29.5 x x 55.4 12.00 3.00 Aug. 35.0 49.4 45.0 13.0 90.0 31.0 x x 35.5 12.00 3.00 Sep. 35.0 54.1 45.0 13.0 90.0 33.0 x x 36.7 12.00 3.00 Oct. 35.0 49.0 35.0 13.0 90.0 34.5 x x 38.5 12.00 3.00 Nov. 35.0 50.3 35.0 13.0 90.0 36.5 x x 39.4 12.00 3.00 Dec. 35.0 52.7 36.2 13.0 90.0 39.0 x x 40.3 12.00 3.00

1997 Jan. 50.0 58.8 50.0 13.0 90.0 48.4 x x 52.1 12.00 3.00 Feb. 50.0 128.1 x 13.0 154.1 50.1 426.5 50.0 64.4 12.00 3.00 Mar. 50.0 266.7 x 13.0 543.5 52.2 238.5 50.0 93.5 22.00 3.00 Apr. 50.0 184.9 x 13.0 200.0 53.4 173.2 50.0 68.4 30.00 3.00 May 50.0 x x 13.0 200.0 53.9 160.0 50.0 58.8 30.00 3.00 Jun. 50.0 x x 13.0 200.0 53.1 x 50.0 51.0 30.00 3.00 Jul. 44.7 x x 13.0 188.7 51.0 x 44.5 45.2 15.00 1.50 Aug. 40.0 x x 13.0 140.0 40.0 x 40.0 40.0 15.00 1.50 Sep. 40.0 x x 13.0 140.0 40.0 x 40.0 40.0 15.00 1.50 Oct. 40.0 x 51.8 13.0 140.0 40.0 x 40.0 40.5 15.00 1.50 Nov. 40.0 x 84.6 13.0 140.0 40.0 x 40.0 65.6 15.00 1.50 Dec. 40.0 x x 13.0 140.0 40.0 x 40.0 52.6 15.00 1.50

1998 Jan. 40.0 x x 13.0 140.0 40.0 x 40.0 46.0 15.00 1.50 Feb. 40.0 x x 13.0 140.0 40.0 x 40.0 44.3 15.00 1.50 Mar. 40.0 x x 13.0 140.0 40.0 x 40.0 40.0 15.00 1.50 Apr. 40.0 x x 13.0 140.0 40.0 x 40.0 40.0 15.00 1.50 May 40.0 x x 13.0 140.0 40.0 x 40.0 40.0 15.00 1.50 Jun. 40.0 x x 13.0 140.0 40.0 x 40.0 40.0 15.00 1.50 Jul. 40.0 x x 13.0 140.0 40.0 x 40.0 40.0 10.50 3.50 Aug. 35.0 x x 13.0 95.0 35.0 x 35.0 35.0 10.00 3.50 Sep. 35.0 x x 13.0 95.0 35.0 x 35.0 35.0 10.00 3.30 Oct. 35.0 x x 13.0 95.0 35.0 x 35.0 35.0 10.00 3.30 Nov. 35.0 x x 13.0 95.0 35.0 x 35.0 35.0 10.00 3.30 Dec. 35.0 x x 13.0 95.0 35.0 x 35.0 35.0 10.25 3.30

1) Credit lines until 31 July 1995; 2) Fixed term credit until 31 July 1995; 3) Special credit until 31 July 1995;4) Overdraft credit until 31 July 1995; 5) 70 % during 1-14 August 1994; 6) 33 % during 1-14 December 1995.7) 90% during 1-14 December 1995.

29*


11. INTEREST RATES APPLIED BY BANKS- percent per annum -

Period Lending rate Deposit rateaverage non-bank customers interbank operations

(including relations with NBR)

average non-bank customers

interbank operations (including relations with NBR)

1993 Dec. 80.58 86.4 57.8 71.50 42.5 100.3 1994 Jan. 87.60 93.7 64.8 81.93 49.0 125.2

Feb. 98.40 105.0 72.2 85.06 58.2 123.7 Mar. 99.91 105.7 75.1 86.60 60.2 126.8 Apr. 102.76 108.0 82.8 83.82 62.0 114.3 May 101.40 106.5 82.3 84.79 67.3 108.3 Jun. 100.64 105.9 81.9 72.66 59.3 97.9 Jul. 92.27 95.9 79.3 68.77 59.7 83.7 Aug. 81.31 83.4 74.0 66.18 60.0 74.0 Sep. 76.10 81.0 60.6 60.21 55.8 67.9 Oct. 70.60 73.7 60.3 56.90 53.4 62.3 Nov. 62.72 64.1 58.0 49.12 49.6 48.5 Dec. 60.59 61.8 56.7 47.37 49.5 44.3

1995 Jan. 54.50 56.3 48.9 40.81 44.3 36.9 Feb. 52.36 54.0 47.3 38.70 41.7 35.4 Mar. 50.85 52.1 47.2 37.44 39.4 35.0 Apr. 49.06 51.1 43.8 36.42 37.6 34.4 May 47.96 49.4 43.3 34.43 35.2 32.4 Jun. 46.47 48.1 42.0 36.09 37.6 33.1 Jul. 46.49 48.0 42.1 38.44 37.5 40.4 Aug. 46.34 47.9 41.8 37.47 36.1 40.1 Sep. 44.06 46.1 38.1 35.89 34.1 37.7 Oct. 41.45 42.8 37.4 33.29 30.9 37.4 Nov. 41.85 44.0 40.9 33.74 31.1 40.9 Dec. 43.70 47.5 39.0 36.70 32.4 38.8




30*


12. CAPITAL MARKET

Period No. of traded companies

(end of period)

Shares traded(thousends)

No. of trades Turnover(billions of lei)

Average value per trade 1)

(thou.lei / transaction)

Average volume per

trade(shares /

transaction)

Market capitalisation

2)(billions of lei)

Market composite

index(points)

BET index(points)

BUCHAREST STOCK EXCHANGE1995 Nov. 8 10 89 0.6 6,230.9 109 271 x x

Dec. 9 33 290 1.9 6,584.5 114 259 x x 1996 Jan. 10 50 628 2.2 3,454.7 80 366 x x

Feb. 11 130 1,618 2.7 1,675.1 80 339 x x Mar. 13 238 2,600 4.4 1,675.8 92 290 x x Apr. 13 88 1,281 1.2 906.8 69 248 x x May 13 142 2,317 1.4 585.4 61 204 x x Jun. 13 87 1,382 0.8 560.9 63 162 x x Jul. 13 85 1,742 0.5 308.4 49 168 x x Aug. 13 102 1,831 0.7 408.2 56 203 x x Sep. 13 57 1,136 0.4 325.7 50 171 x x Oct. 13 82 1,529 0.5 299.2 53 151 x x Nov. 16 48 976 0.3 313.6 49 168 x x Dec. 17 34 728 0.2 300.6 46 231 x x

1997 Jan. 17 237 1,903 2.0 1,033.4 125 317 x x Feb. 23 6,547 11,631 18.0 1,543.8 563 703 x x Mar. 25 19,647 30,779 26.6 864.5 638 710 x x Apr. 33 46,573 53,749 85.7 1,593.6 866 2,360 x x May 37 46,726 92,654 152.0 1,640.6 504 2,409 x x Jun. 44 96,778 90,026 336.5 3,737.3 1,075 4,342 x x Jul. 51 74,552 56,308 350.8 6,230.5 1,324 5,019 x x Aug. 58 51,996 56,931 224.8 3,947.8 913 5,565 x x Sep. 62 59,720 56,599 200.6 3,543.6 1,055 5,379 x 955.9 Oct. 70 75,961 75,647 235.0 3,106.4 1,004 6,022 x 941.0 Nov. 74 50,757 48,306 164.0 3,395.9 1,051 4,549 x 693.5 Dec. 75 49,309 32,797 120.5 3,673.9 1,503 5,056 x 757.9

1998 Jan. 81 53,286 40,197 123.7 3,076.6 1,326 5,229 x 727.7 Feb. 88 73,933 51,643 164.7 3,189.8 1,432 7,143 x 811.7 Mar. 92 129,060 66,148 343.0 5,185.6 1,951 6,663 x 793.1 Apr. 98 93,148 54,970 232.3 4,226.3 1,695 6,814 1,056.5 804.7 May 101 110,788 54,345 217.0 3,992.8 2,039 5,764 885.2 663.2 Jun. 104 76,272 45,967 136.0 2,959.4 1,659 5,651 856.2 636.7 Jul. 107 75,446 42,986 121.1 2,817.1 1,755 5,048 750.3 559.0 Aug. 110 47,795 33,937 66.7 1,966.8 1,408 3,628 521.8 359.9 Sep. 113 47,266 28,849 63.6 2,203.9 1,638 3,051 429.4 294.4 Oct. 119 52,157 25,976 45.2 1,739.1 2,008 3,328 451.1 295.8 Nov. 122 75,041 35,805 84.4 2,357.6 2,096 3,872 519.5 376.8 Dec. 126 51,259 24,749 64.7 2,616.0 2,071 3,922 488.6 377.7

RASDAQ MARKET1996 Nov. 344 2,141 688 1.0 1,520 3,112 465 x

Dec. 1,615 4,866 2,384 2.5 1,052 2,041 1,215 x 1997 Jan. 2,319 9,912 5,698 20.4 3,578 1,740 2,427 x

Feb. 2,667 35,400 13,543 112.6 8,314 2,614 3,358 x Mar. 2,714 44,740 18,513 74.1 4,004 2,417 4,530 x Apr. 2,752 57,952 24,920 145.4 5,833 2,326 8,400 x May 2,899 60,001 30,963 186.7 6,030 1,938 8,343 x Jun. 3,248 86,357 39,695 388.7 9,791 2,176 12,588 x Jul. 3,660 119,710 53,313 624.5 11,714 2,245 17,515 x Aug. 3,668 93,115 54,437 391.2 7,187 1,711 16,930 x Sep. 3,692 89,744 60,860 286.2 4,703 1,475 13,983 x Oct. 3,717 80,360 64,082 227.2 3,546 1,254 13,062 x Nov. 4,775 60,818 48,459 145.2 2,996 1,255 11,078 x Dec. 5,134 58,336 32,618 228.4 7,001 1,788 12,033 x

1998 Jan. 5,569 69,360 45,515 166.3 3,655 1,524 11,490 x Feb. 5,574 79,974 58,916 172.5 2,928 1,357 15,562 x Mar. 5,445 121,929 75,573 460.5 6,093 1,613 15,202 x Apr. 5,449 101,209 53,729 248.4 4,623 1,884 12,973 x May 5,450 91,379 52,817 436.4 8,263 1,730 12,239 x Jun. 5,463 87,106 47,032 220.6 4,691 1,852 10,958 x Jul. 5,465 96,434 46,093 215.4 4,673 2,092 10,674 1,000.0 Aug. 5,470 79,932 39,484 165.9 4,202 2,024 8,885 771.5 Sep. 5,471 108,271 33,749 183.3 5,432 3,208 8,254 714.9 Oct. 5,472 162,512 30,551 327.0 10,704 5,319 8,007 712.0 Nov. 5,473 162,764 30,403 736.1 24,213 5,354 9,297 772.5 Dec. 5,496 240,540 28,450 463.7 16,300 8,455 8,643 716.2

Source: Bucharest Stock Exchange (BSE); RASDAQNote: Data on market capitalisation, BET and composite index refer to the last trading session of the month.1) Turnover/No. of trades2) Total value of company shares traded on BSE, based on last price of the month considered.

31*


13a. INTERBANK FOREIGN EXCHANGE MARKET

Period Volume of transactions (mill.USD) Exchange ratetotal change end of period average

(lei/USD) lei/USD monthly change (%)

change as compared to the end of previous year (%)

change as compared to the same period of previous year (%)

1994 Jan. 89.6 –22.1 1,450.00 1,387.16 21.6 21.6 195.1 Feb. 86.7 –2.9 1,570.00 1,493.50 7.7 30.9 192.6 Mar. 102.0 15.3 1,650.00 1,601.30 7.2 40.4 173.2 Apr. 144.1 42.1 1,659.00 1,670.71 4.3 46.5 176.7 May 142.2 –1.9 1,659.00 1,657.24 –0.8 45.3 166.7 Jun. 171.5 29.3 1,677.00 1,667.09 0.6 46.1 142.1 Jul. 192.8 21.3 1,690.00 1,685.71 1.1 47.8 119.4 Aug. 427.8 235.0 1,701.00 1,687.83 0.1 48.0 108.7 Sep. 329.7 –98.1 1,756.00 1,727.09 2.3 51.4 98.5 Oct. 334.3 4.6 1,752.00 1,752.95 1.5 53.7 78.0 Nov. 346.7 12.4 1,770.00 1,756.55 0.2 54.0 64.5 Dec. 493.7 147.0 1,767.00 1,773.90 1.0 55.5 55.5

1995 Jan. 301.7 –192.0 1,780.00 1,776.00 0.1 0.1 28.0 Feb. 366.0 64.3 1,810.00 1,798.85 1.3 1.4 20.4 Mar. 353.9 –12.1 1,847.00 1,832.57 1.9 3.3 14.4 Apr. 264.9 –89.0 1,879.00 1,864.95 1.8 5.1 11.6 May 341.8 77.0 1,937.00 1,911.20 2.5 7.7 15.3 Jun. 342.6 0.7 1,975.00 1,955.82 2.3 10.3 17.3 Jul. 432.7 90.2 2,018.00 1,994.29 2.0 12.4 18.3 Aug. 423.8 –9.0 2,069.00 2,045.91 2.6 15.3 21.2 Sep. 421.3 –2.4 2,128.00 2,100.00 2.6 18.4 21.6 Oct. 423.1 1.7 2,225.00 2,166.20 3.2 22.1 23.6 Nov. 383.9 –39.2 2,547.00 2,395.27 10.6 35.0 36.4 Dec. 452.7 68.8 2,578.00 2,558.00 6.8 44.2 44.2

1996 Jan. 349.3 –103.4 2,640.00 2,599.24 1.6 1.6 46.4 Feb. 302.9 –46.4 2,859.00 2,773.71 6.7 8.4 54.2 Mar. 314.0 11.1 2,937.00 2,872.60 3.6 12.3 56.8 Apr. 341.7 27.7 2,913.00 2,911.14 1.3 13.8 56.1 May 360.8 19.0 2,951.00 2,930.41 0.7 14.6 53.3 Jun. 354.6 –6.2 3,028.00 2,988.00 2.0 16.8 52.8 Jul. 404.8 50.2 3,135.00 3,063.22 2.5 19.8 53.6 Aug. 371.0 –33.8 3,162.00 3,143.91 2.6 22.9 53.7 Sep. 386.9 15.9 3,261.00 3,201.19 1.8 25.1 52.4 Oct. 276.1 –110.8 3,375.00 3,295.74 3.0 28.8 52.1 Nov. 293.8 17.7 3,591.00 3,478.19 5.5 36.0 45.2 Dec. 448.4 154.6 4,035.00 3,733.89 7.4 46.0 46.0

1997 Jan. 272.4 –176.0 5,932.00 4,963.40 32.9 32.9 91.0 Feb. 352.4 80.0 7,744.00 6,895.70 38.9 84.7 148.6 Mar. 477.0 124.5 6,996.00 7,235.90 4.9 93.8 151.9 Apr. 1,042.9 565.9 7,095.00 7,048.52 –2.6 88.8 142.1 May 858.8 –184.0 7,110.00 7,090.71 0.6 89.9 142.0 Jun. 716.8 –142.0 7,032.00 7,172.29 1.2 92.1 140.0 Jul. 861.2 144.3 7,354.00 7,164.26 –0.1 91.9 133.9 Aug. 759.5 –101.6 7,471.00 7,445.24 3.9 99.4 136.8 Sep. 733.2 –26.4 7,613.00 7,528.82 1.1 101.6 135.2 Oct. 889.1 156.0 7,741.00 7,702.09 2.3 106.3 133.7 Nov. 789.8 –99.3 7,860.00 7,808.15 1.4 109.1 124.5 Dec. 962.1 172.3 8,023.00 7,960.25 1.9 113.2 113.2

1998 Jan. 947.8 –14.3 8,248.00 8,293.40 4.2 4.2 67.1 Feb. 927.4 –20.4 8,105.00 8,230.90 –0.8 3.4 19.4 Mar. 1,172.4 245.1 8,490.00 8,207.09 –0.3 3.1 13.4 Apr. 1,117.1 –55.4 8,345.00 8,379.62 2.1 5.3 18.9 May 980.8 –136.2 8,511.00 8,477.25 1.2 6.5 19.6 Jun. 957.8 –23.1 8,670.00 8,569.36 1.1 7.7 19.5 Jul. 1,177.3 219.5 8,744.00 8,699.43 1.5 9.3 21.4 Aug. 1,228.1 50.8 8,924.00 8,781.24 0.9 10.3 17.9 Sep. 1,636.0 408.0 9,238.00 9,050.14 3.1 13.7 20.2 Oct. 1,768.4 132.4 9,592.00 9,380.68 3.7 17.8 21.8 Nov. 1,719.6 –48.8 10,082.00 9,908.86 5.6 24.5 26.9 Dec. 2,220.2 500.6 10,951.00 10,528.59 6.3 32.3 32.3

Averages1990 ... ... x 22.43 7.7 x 50.3 1991 36.5 x x 76.39 15.0 x 240.6 1992 65.6 29.2 x 307.95 7.3 x 303.1 1993 66.6 1.0 x 760.05 8.4 x 146.8 1994 238.4 171.8 x 1,655.09 3.7 x 117.8 1995 375.7 137.3 x 2,033.26 3.1 x 22.8 1996 355.5 –20.2 x 3,082.60 3.2 x 51.6 1997 726.3 370.7 x 7,167.94 6.5 x 132.5 1998 1,321.1 594.8 x 8,875.55 2.4 x 23.8

32*


13b. ACTIVITY OF FOREIGN EXCHANGE BUREAUS- thousands of USD -

Period Purchases SalesTotal Banks Other Total Banks Other

1994 Jan. 16,465.1 4,813.2 11,651.9 14,615.0 3,802.9 10,812.1 Feb. 25,792.8 14,974.9 10,817.9 12,011.1 1,694.5 10,316.6 Mar. 22,789.2 8,170.9 14,618.3 16,915.5 1,879.8 15,035.7 Apr. 21,108.3 7,383.6 13,724.8 16,131.3 1,489.2 14,642.2 May 31,818.9 14,842.1 16,976.8 18,847.1 1,979.5 16,867.6 Jun. 35,914.6 15,318.7 20,595.9 20,389.0 1,776.5 18,612.4 Jul. 41,301.8 15,314.9 25,986.9 26,726.6 4,010.3 22,716.2 Aug. 36,063.7 7,780.2 28,283.5 33,506.0 4,940.3 28,565.7 Sep. 34,421.1 5,575.4 28,845.7 32,434.7 4,655.1 27,779.6 Oct. 31,554.6 5,766.5 25,788.2 33,603.6 5,279.6 28,324.0 Nov. 30,272.5 4,787.5 25,485.0 42,498.9 7,055.7 35,443.1 Dec. 30,844.7 4,248.2 26,596.5 39,522.4 6,561.9 32,960.5





1991 43,194.6 23,524.9 19,669.7 27,878.2 11,433.5 16,444.7 1992 213,128.5 84,254.1 128,874.4 187,170.5 62,868.7 124,301.8 1993 147,778.9 41,581.6 106,197.3 115,558.5 18,575.5 96,983.0 1994 358,347.3 108,976.1 249,371.2 307,201.2 45,125.3 262,075.9 1995 487,316.5 86,229.4 401,087.1 497,271.0 79,102.2 418,168.8 1996 412,086.5 53,143.0 358,943.5 423,497.2 58,526.5 364,970.8 1997 876,644.8 348,512.8 528,132.0 537,554.1 77,597.4 459,956.7 1998 1,497,818.4 360,364.3 1,137,454.1 1,486,726.6 331,773.0 1,154,953.5

33*


14. BALANCE SHEET OF THE NATIONAL BANK OF ROMANIA- millions of lei; end of period -

Period ASSETS FOREIGN ASSETSTotal Gold Convertible currencies US SDR Other

Total Cash Deposits Deposits Deposits Other Treasury holdings convertibleand with BIS with FED with bills with IMF foreigncheques foreign assets

banks (medium &long termTreasurybonds)

1990 Dec. 447,403 28,167 27,059 917 516 391 – – 10 – 4 x 1991 Dec. 917,173 165,545 125,834 29,707 923 20,754 451 7,580 – – 9,844 x 1992 Dec. 2,002,527 400,062 358,772 39,148 282 512 532 28,287 9,535 – 2,142 x 1993 Dec. 5,821,481 1,233,359 1,179,371 51,569 507 2,160 29,586 19,315 – – 2,419 x 1994 Jan. 6,311,200 1,235,573 1,182,421 50,419 515 1,738 32,679 15,487 – – 2,733 x

Feb. 6,686,457 1,247,680 1,184,852 38,894 39 6,541 31,120 1,195 – – 23,934 x Mar. 6,750,210 1,305,835 1,185,380 118,441 76 17,534 89,901 10,930 – – 2,015 x Apr. 7,193,279 1,752,350 1,550,244 200,079 52 14,894 171,840 13,293 – – 2,027 x May 11,465,008 2,467,391 1,643,949 651,765 51 11,919 616,220 23,575 – – 171,677 x Jun. 11,884,740 2,681,120 1,677,914 825,845 55 110,656 672,513 42,621 – – 177,362 x Jul. 12,365,763 2,781,012 1,681,525 919,671 41 119,770 603,516 196,345 – – 179,816 x Aug. 12,532,967 2,777,286 1,686,549 457,382 45 106,703 194,833 155,801 – 505,472 127,884 x Sep. 12,907,076 2,783,751 1,690,793 352,131 68 106,985 80,263 164,815 – 608,593 132,234 x Oct. 13,519,499 2,740,979 1,695,636 477,697 41 108,230 217,347 152,080 – 433,306 134,340 x Nov. 13,717,904 2,802,231 1,699,156 566,391 45 109,715 258,415 198,216 – 437,635 99,049 x Dec. 13,708,498 2,749,581 1,704,473 397,328 62 129,378 52,983 214,904 – 550,181 97,600 x

1995 Jan. 13,528,124 2,585,792 1,709,004 317,498 97 31,722 98,286 187,393 – 459,325 99,965 x Feb. 13,558,895 2,451,121 1,713,097 338,803 144 23,019 89,694 225,945 – 333,123 66,097 x Mar. 13,631,519 2,461,308 1,717,297 405,735 238 36,746 14,126 354,626 – 268,484 69,792 x Apr. 13,199,098 2,531,703 1,721,624 528,488 62 33,404 141,227 353,796 – 208,348 73,243 x May 14,447,596 2,331,329 1,725,956 365,466 38 29,746 19,350 316,332 – 166,811 73,096 x Jun. 15,505,406 2,791,697 1,983,979 690,146 35 23,951 32,787 633,373 – 72,850 44,722 x Jul. 15,799,689 2,805,066 1,989,900 717,687 48 53,623 149,051 514,965 – 49,718 47,761 x Aug. 15,985,630 2,761,688 1,993,816 751,826 107 23,313 185,987 542,419 – – 16,046 x Sep. 16,718,961 2,697,639 1,999,936 681,216 266 9,207 169,611 502,132 – – 16,487 x Oct. 17,406,029 2,715,195 2,005,146 695,003 62 11,663 172,155 511,123 – – 15,046 x Nov. 18,760,409 2,852,151 2,009,051 817,283 177 89,587 275,099 452,420 – – 25,817 x Dec. 18,072,556 2,872,139 2,010,863 716,601 256 79,046 230,498 406,801 – – 144,675 x

1996 Jan. 17,883,136 2,753,601 2,013,361 695,568 109 52,486 170,873 472,100 – – 44,672 x Feb. 17,809,230 2,574,393 2,016,327 553,865 41 9,054 115,016 429,754 – – 4,201 x Mar. 18,284,435 2,839,875 2,064,788 770,814 58 6,332 300,890 463,534 – – 4,273 x Apr. 17,546,793 2,742,488 2,071,558 663,349 315 19,941 182,550 460,543 – – 7,581 x May 21,628,016 3,660,402 2,082,860 1,487,293 171 22,788 943,410 520,924 – – 90,249 x Jun. 22,449,477 4,274,254 2,086,929 1,879,710 204 27,706 1,035,632 816,168 – 299,093 8,522 x Jul. 22,346,415 3,883,079 2,094,473 1,066,746 313 34,519 34,425 997,489 – 697,536 8,938 15,386 Aug. 22,242,518 3,654,661 2,101,529 976,786 117 12,489 41,832 922,348 – 520,892 39,935 15,519 Sep. 23,209,518 3,801,544 2,206,601 1,166,631 251 21,586 210,040 934,754 – 402,386 9,921 16,005 Oct. 25,369,845 5,069,575 2,227,932 2,080,430 78 99,215 759,158 1,221,979 – 734,348 10,301 16,564 Nov. 26,302,684 4,924,236 2,237,656 1,327,071 267 18,830 3,471 1,304,503 – 1,226,041 115,844 17,624

Dec.* 20,753,695 5,651,553 3,429,498 1,487,811 412 33,434 499 1,453,466 – 698,073 16,367 19,804 1997 Jan. 21,956,693 6,725,314 3,437,347 2,304,970 186 63,224 54,376 2,187,184 – 930,577 23,306 29,114

Feb. 24,807,626 7,306,944 3,441,258 3,034,430 380 29,461 113,322 2,891,267 – 786,636 6,613 38,007 Mar. 24,587,085 7,766,747 3,482,332 3,533,441 422 18,823 758,204 2,755,992 – 710,654 5,984 34,336 Apr. 26,905,346 11,431,935 3,524,223 6,582,641 327 27,234 1,709,310 4,845,770 – 708,063 582,186 34,822 May 33,952,085 11,977,728 3,596,920 7,131,019 226 33,810 505,760 6,591,223 – 709,885 539,904 – Jun. 39,624,209 15,185,101 3,666,749 10,281,402 395 2,664,328 701,851 6,914,828 – 701,203 535,747 – Jul. 41,136,883 16,901,771 3,776,438 12,041,472 246 1,753,843 864,196 9,423,187 – 540,785 543,076 – Aug. 40,879,023 16,954,122 3,834,957 9,849,002 5,245 1,315,248 1,879,751 6,648,758 – 2,771,457 498,706 – Sep. 44,223,684 21,101,349 3,882,668 11,187,099 379 1,583,185 948,975 8,654,560 – 4,894,460 1,137,122 – Oct. 43,729,337 20,955,666 3,977,731 12,178,144 1,185 1,560,114 1,959,451 8,657,394 – 3,634,484 1,165,307 – Nov. 48,266,765 21,746,608 4,034,017 12,255,113 511 1,564,532 1,376,532 9,313,538 – 4,467,066 990,412 – Dec. 48,612,053 26,596,305 8,997,727 12,088,655 555 1,912,897 662,194 9,513,009 – 4,676,115 833,808 –

1998 Jan. 48,779,136 26,779,688 9,133,061 13,563,050 1,188 1,838,255 1,717,771 10,005,836 – 3,225,146 858,431 – Feb. 48,088,616 26,271,201 9,160,306 13,034,158 275 1,645,677 1,479,684 9,908,522 – 3,402,568 674,169 – Mar. 48,113,807 26,249,638 9,225,814 12,336,236 336 1,218,922 1,442,599 9,674,379 – 4,006,401 681,187 – Apr. 48,437,377 27,177,299 9,264,503 13,507,898 476 1,184,196 1,956,529 10,366,697 – 3,732,870 672,028 – May 51,882,799 27,739,223 9,305,427 12,446,304 1,133 1,191,281 2,182,597 9,071,293 – 5,497,613 489,879 – Jun. 51,790,221 27,882,109 9,340,461 11,072,976 1,166 910,158 851,178 9,310,474 – 7,146,865 321,807 – Jul. 53,327,831 29,128,483 9,430,006 10,862,422 628 964,710 1,080,105 8,816,979 – 8,509,891 326,164 – Aug. 52,729,048 27,935,163 9,460,003 10,809,418 617 854,201 1,259,530 8,695,070 – 7,511,983 153,759 – Sep. 53,789,576 27,014,055 9,477,186 9,882,007 304 919,918 563,643 8,398,142 – 7,520,103 134,759 – Oct. 53,839,895 26,177,174 9,501,944 9,064,103 300 1,601,555 909,704 6,552,544 – 7,467,813 143,314 – Nov. 51,662,461 24,187,042 9,530,427 8,169,265 375 1,649,736 135,195 6,383,959 – 6,259,907 227,443 – Dec. 55,254,473 25,210,706 10,155,485 9,056,675 580 3,710,955 111,028 5,234,112 – 5,985,720 12,826 –

Note: Starting December 1992, foreign banks' branches have been included.*) Starting December 1996, General Account of State Treasury has been included only in the NBR's balance sheet.

34*


14. BALANCE SHEET OF THE NATIONAL BANK OF ROMANIA

Period

1990 Dec.1991 Dec.1992 Dec.1993 Dec.1994 Jan.

Feb.Mar.Apr.May Jun.Jul.Aug.Sep.Oct.Nov.Dec.


1996 Jan.Feb.Mar.Apr.May Jun.Jul.Aug.Sep.Oct.Nov.

Dec.*1997 Jan.



- millions of lei; end of period -DOMESTIC ASSETSTotal Vault Romania's quota (subscriptions)

cash Total IMF IBRD BIS IFCTotal Gold SDR Con- Lei Total Con- Lei (lei) (lei)

vertible vertiblecurren- curren-cies cies

419,236 487 26,975 26,211 2,094 2,023 1,748 20,346 376 77 299 337 52 751,628 826 46,049 42,577 3,401 3,286 2,839 33,051 718 419 299 1,835 284 1,602,465 1,410 217,283 204,521 11,339 26,597 9,465 157,120 3,854 1,314 2,540 4,465 798 4,588,122 1,743 701,777 660,125 36,599 85,847 30,549 507,130 12,357 3,643 8,714 12,387 2,510 5,075,627 1,890 706,268 660,125 36,599 85,847 30,549 507,130 12,854 4,140 8,714 14,076 2,852 5,438,777 1,768 709,366 660,125 36,599 85,847 30,549 507,130 13,197 4,483 8,714 15,241 3,088 5,444,375 1,781 711,431 660,125 36,599 85,847 30,549 507,130 13,425 4,711 8,714 16,017 3,245 5,440,929 1,816 711,664 660,125 36,599 85,847 30,549 507,130 13,451 4,737 8,714 16,105 3,263 8,997,617 1,761 1,835,338 1,778,223 98,590 231,252 82,291 1,366,091 13,451 4,737 8,714 16,105 3,263 9,203,620 1,854 1,847,026 1,778,223 98,590 231,252 82,291 1,366,091 24,665 4,737 19,928 16,279 3,298 9,584,752 1,701 1,847,386 1,778,223 98,590 231,252 82,291 1,366,091 24,702 4,825 19,877 16,386 3,324 9,755,681 1,696 1,848,120 1,778,223 98,590 231,252 82,291 1,366,091 24,734 4,857 19,877 16,512 3,739 10,123,325 1,558 1,849,737 1,778,223 98,590 231,252 82,291 1,366,091 24,891 5,014 19,877 17,046 3,860 10,778,520 1,552 1,849,619 1,778,223 98,590 231,252 82,291 1,366,091 24,880 5,003 19,877 17,008 3,851 10,915,673 1,468 1,850,149 1,778,223 98,590 231,252 82,291 1,366,091 24,931 5,054 19,877 17,182 3,891 10,958,917 1,583 1,850,061 1,778,223 98,590 231,252 82,291 1,366,091 24,922 5,045 19,877 17,153 3,884 10,942,332 1,444 1,850,443 1,778,223 98,590 231,252 82,291 1,366,091 24,959 5,082 19,877 17,279 3,913 11,107,774 1,452 1,851,325 1,778,223 98,590 231,252 82,291 1,366,091 25,045 5,168 19,877 17,571 3,979 11,170,211 1,543 1,852,413 1,778,223 98,590 231,252 82,291 1,366,091 25,151 5,274 19,877 17,930 4,060 10,667,395 1,818 1,853,354 1,778,223 98,590 231,252 82,291 1,366,091 25,242 5,365 19,877 18,241 4,130 12,116,267 1,473 2,312,229 2,228,915 123,577 289,863 103,148 1,712,327 25,405 5,528 19,877 18,794 4,256 12,713,709 1,720 2,339,434 2,228,915 123,577 289,863 103,148 1,712,327 51,444 5,639 45,805 19,172 4,341 12,994,623 1,701 2,340,839 2,228,915 123,577 289,863 103,148 1,712,327 51,567 5,762 45,805 19,585 4,436 13,223,942 2,035 2,342,993 2,228,915 123,577 289,863 103,148 1,712,327 51,712 5,907 45,805 20,085 5,027 14,021,322 1,704 2,344,940 2,228,915 123,577 289,863 103,148 1,712,327 51,881 6,076 45,805 20,657 5,170 14,690,834 1,442 2,348,141 2,228,915 123,577 289,863 103,148 1,712,327 52,158 6,353 45,805 21,599 5,406 15,908,258 1,604 2,358,766 2,228,915 123,577 289,863 103,148 1,712,327 53,077 7,272 45,805 24,725 6,188 15,200,417 1,340 2,359,790 2,228,915 123,577 289,863 103,148 1,712,327 53,166 7,361 45,805 25,026 6,264 15,129,535 1,511 2,361,836 2,228,915 123,577 289,863 103,148 1,712,327 53,343 7,538 45,805 25,628 6,414 15,234,837 1,298 2,369,030 2,228,915 123,577 289,863 103,148 1,712,327 53,965 8,160 45,805 27,744 6,944 15,444,560 1,459 2,371,636 2,228,915 123,577 289,863 103,148 1,712,327 54,191 8,386 45,805 28,511 7,136 14,804,305 1,436 2,370,844 2,228,915 123,577 289,863 103,148 1,712,327 54,122 8,317 45,805 28,278 7,077 17,967,614 1,351 3,327,769 3,185,324 176,603 414,240 147,408 2,447,073 54,231 8,426 45,805 27,909 7,170 18,175,223 1,859 3,331,048 3,185,324 176,603 414,240 147,408 2,447,073 54,451 8,646 45,805 29,394 7,357 18,463,336 1,804 3,342,699 3,185,324 176,603 414,240 147,408 2,447,073 62,876 8,951 53,925 30,433 7,617 18,587,857 1,850 3,343,589 3,185,324 176,603 414,240 147,408 2,447,073 62,953 9,028 53,925 30,695 7,682 19,407,974 1,785 3,345,895 3,185,324 176,603 414,240 147,408 2,447,073 63,235 9,310 53,925 30,695 7,923 20,300,270 2,020 3,349,647 3,185,324 176,603 414,240 147,408 2,447,073 63,561 9,636 53,925 31,792 8,200 21,378,448 3,645 3,357,746 3,185,324 176,603 414,240 147,408 2,447,073 64,178 10,253 53,925 34,859 8,725 15,102,142 3,276 3,372,396 3,185,324 176,603 414,240 147,408 2,447,073 65,445 11,520 53,925 39,170 9,803 15,231,379 3,508 3,434,994 3,185,324 176,603 414,240 147,408 2,447,073 70,862 16,937 53,925 57,585 14,412 17,500,682 3,387 3,494,788 3,185,324 176,603 414,240 147,408 2,447,073 76,036 22,111 53,925 75,174 18,815 16,820,338 3,552 3,470,103 3,185,324 176,603 414,240 147,408 2,447,073 73,900 19,975 53,925 67,913 16,997 15,473,411 3,257 3,473,371 3,185,324 176,603 414,240 147,408 2,447,073 74,183 20,258 53,925 68,874 17,238 21,974,357 3,442 7,594,712 7,306,038 405,067 950,125 338,102 5,612,744 74,237 20,312 53,925 69,059 17,284 24,439,108 3,557 7,620,395 7,306,038 405,067 950,125 338,102 5,612,744 102,542 20,064 82,478 68,214 17,073 24,235,112 3,799 7,631,259 7,306,038 405,067 950,125 338,102 5,612,744 103,336 20,858 82,478 70,913 19,439 23,924,901 3,722 7,636,775 7,306,038 405,067 950,125 338,102 5,612,744 103,810 21,332 82,478 72,524 19,880 23,122,335 3,953 7,641,261 7,306,038 405,067 950,125 338,102 5,612,744 104,195 21,717 82,478 73,835 20,240 22,773,671 4,653 7,645,681 7,306,038 405,067 950,125 338,102 5,612,744 104,575 22,097 82,478 75,126 20,593 26,520,157 4,846 7,649,701 7,306,038 405,067 950,125 338,102 5,612,744 104,920 22,442 82,478 76,301 20,915 22,015,748 3,613 7,655,040 7,306,038 405,067 950,125 338,102 5,612,744 105,386 22,908 82,478 77,805 21,349 21,999,448 3,757 7,662,118 7,306,038 405,067 950,125 338,102 5,612,744 106,028 23,550 82,478 79,591 21,948 21,817,415 4,529 7,659,667 7,306,038 405,067 950,125 338,102 5,612,744 105,620 23,142 82,478 80,504 21,567 21,864,169 4,548 7,670,636 7,306,038 405,067 950,125 338,102 5,612,744 106,719 24,241 82,478 82,416 22,592 21,260,078 3,939 7,678,234 7,306,038 405,067 950,125 338,102 5,612,744 106,305 23,827 82,478 81,009 22,206 24,143,576 4,427 8,852,447 8,474,462 469,848 1,102,074 392,173 6,510,367 106,779 24,301 82,478 82,620 22,648 23,908,112 8,445 8,966,364 8,474,462 469,848 1,102,074 392,173 6,510,367 215,738 24,757 190,981 84,164 23,071 24,199,348 9,063 8,969,065 8,474,462 469,848 1,102,074 392,173 6,510,367 215,949 24,968 190,981 84,882 23,268 24,793,885 9,935 8,975,046 8,474,462 469,848 1,102,074 392,173 6,510,367 216,463 25,482 190,981 86,629 23,747 26,775,521 11,465 8,987,064 8,474,462 469,848 1,102,074 392,173 6,510,367 217,360 26,379 190,981 89,677 24,582 27,662,721 12,056 8,999,596 8,474,462 469,848 1,102,074 392,173 6,510,367 218,370 27,389 190,981 93,114 25,524 27,475,419 9,533 9,016,148 8,474,462 469,848 1,102,074 392,173 6,510,367 219,769 28,788 190,981 97,871 26,828 30,043,767 9,278 9,046,607 8,474,462 469,848 1,102,074 392,173 6,510,367 222,251 31,270 190,981 106,306 29,141

35*



Period





Dec.*1997 Jan.



(continued) - millions of lei; end of period -

Credit to government Interbank Other assetsEBRD MIGA Total Treasury Other Social Deficit Deficit General assets Total Settlements(lei) (lei) certifica- certificates security of of Account with the

tes budget previous current of Government** year year State budget

** ** Treasury

– – 3,809 x x – – 3,809 x 361,512 26,452 19,515 635 – 41,096 x x – – 41,096 x 390,208 273,449 245,798

3,092 553 263,024 x x – – 263,024 x 352,725 768,023 589,399 12,866 1,533 336,300 x x – – 336,300 x 1,879,661 1,668,640 1,100,060 14,620 1,742 303,300 x x – 303,300 – x 2,249,735 1,814,435 1,100,165 15,830 1,886 303,300 x x – 303,300 – x 2,436,929 1,987,414 1,100,237 16,637 1,982 43,808 x x – 43,808 – x 2,487,454 2,199,901 1,176,026 16,728 1,993 – x x – – – x 2,703,942 2,023,508 1,176,032 22,304 1,993 – x x – – – x 2,750,053 4,410,465 1,178,897 22,546 2,014 51,886 x x 51,886 – – x 2,808,589 4,494,264 1,169,486 22,720 2,030 77,996 x x 77,996 – – x 3,127,467 4,530,203 1,169,486 22,868 2,043 81,879 x x 81,879 – – x 3,141,247 4,682,740 1,222,918 23,608 2,109 187,983 x x 69,674 118,309 – x 3,144,746 4,939,301 1,222,288 23,554 2,104 133,721 x x 67,424 66,297 – x 3,695,877 5,097,750 1,222,280 23,796 2,126 41,065 x x 41,065 – – x 3,766,765 5,256,226 1,252,686 23,756 2,122 1,771,401 x x – – 1,771,401 x 2,394,754 4,941,118 3,379,326 23,930 2,138 1,693,366 x x 28,253 1,665,113 – x 2,390,111 5,006,968 3,379,326 24,334 2,174 1,369,164 x x 54,051 1,315,113 – x 2,736,207 5,149,627 3,379,326 24,831 2,218 1,394,865 x x 79,752 1,315,113 – x 2,662,396 5,258,995 3,351,872 25,261 2,257 1,392,246 x x 122,633 1,269,613 – x 3,166,808 4,253,170 3,350,452 32,534 2,325 1,003,518 x x 131,906 871,612 – x 3,585,024 5,214,022 3,348,297 33,190 2,372 922,511 x x 134,899 787,612 – x 4,225,245 5,224,799 3,449,681 33,912 2,424 910,328 x x 169,716 740,612 – x 4,732,592 5,009,163 3,500,746 34,769 2,485 845,544 x x 144,932 700,612 – x 5,127,425 4,905,945 3,393,919 35,761 2,556 799,841 x x 200,229 599,612 – x 5,769,495 5,105,342 3,393,919 37,391 2,672 771,479 x x 251,867 519,612 – x 6,432,604 5,137,168 3,396,080 42,802 3,059 743,478 x x 305,866 437,612 – x 7,397,250 5,407,160 3,416,755 43,323 3,096 3,562,218 x x 262,784 402,612 2,896,822 x 4,724,194 4,552,875 4,170,384 44,365 3,171 3,654,975 x x 302,262 3,269,434 83,279 x 4,514,148 4,597,065 4,170,384 48,029 3,433 3,426,238 x x 360,013 2,964,583 101,642 x 4,785,158 4,653,113 4,192,716 49,356 3,527 3,508,228 28,465 x 424,072 2,818,453 237,238 x 4,871,388 4,691,849 4,192,716 48,953 3,499 2,932,356 18,780 x 496,004 2,176,453 241,119 x 4,782,374 4,717,295 4,192,295 49,591 3,544 2,838,425 69,340 x 515,882 2,175,044 78,159 x 5,549,671 6,250,398 4,210,253 50,885 3,637 3,110,670 69,340 x 571,874 2,175,037 294,419 x 5,220,243 6,511,403 4,442,688 52,684 3,765 3,118,653 36,036 x 669,795 2,077,010 335,812 x 5,477,499 6,522,681 4,384,672 53,137 3,798 2,544,420 – x 756,160 1,554,556 233,704 x 6,194,872 6,503,126 4,326,103 54,801 3,917 2,812,529 – x 817,648 1,554,474 440,407 x 6,727,142 6,520,623 4,303,350 56,717 4,053 1,424,005 – x 908,138 – 515,867 x 8,988,873 6,535,725 4,241,742 60,347 4,313 1,548,575 – x 976,288 – 572,287 x 9,738,177 6,730,305 4,242,989 67,808 4,846 274,793 – x x x x 274,793 8,821,782 2,629,895 x 99,687 7,124 – – – x x x – 7,620,855 4,172,022 x

130,138 9,301 685,568 685,568 – x x x – 7,526,958 5,789,981 x 117,567 8,402 935,401 743,854 – x x x 191,547 7,121,829 5,289,453 x 119,231 8,521 187,789 187,789 – x x x – 6,818,608 4,990,386 x 119,550 8,544 – – – x x x – 6,178,030 8,198,173 x 118,088 8,440 2,403 2,403 – x x x – 6,057,518 10,755,235 x 122,760 8,773 2,040 2,040 – x x x – 5,803,668 10,794,346 x 125,550 8,973 105,686 105,686 – x x x – 5,614,001 10,564,717 x 127,818 9,135 124,416 124,416 – x x x – 5,478,857 9,873,848 x 130,054 9,295 225,685 225,685 – x x x – 3,325,927 11,571,725 x 132,087 9,440 3,741,719 321,719 3,420,000 x x x – 3,666,866 11,457,025 x 134,826 9,636 3,271,258 843,058 2,428,200 x x x – 3,366,759 7,719,078 x 138,607 9,906 2,915,346 493,146 2,422,200 x x x – 3,645,020 7,773,207 x 136,204 9,734 2,927,425 505,225 2,422,200 x x x – 3,512,761 7,713,033 x 142,674 10,197 2,749,556 277,356 2,472,200 x x x – 3,712,578 7,726,851 x 152,653 10,023 2,260,861 251,661 2,009,200 x x x – 3,474,525 7,842,519 x 155,716 10,222 3,116,094 306,894 2,809,200 x x x – 3,606,464 8,564,144 x 158,516 10,413 3,116,094 306,894 2,809,200 x x x – 3,461,115 8,356,094 x 160,002 10,502 3,004,643 95,443 2,909,200 x x x – 3,846,557 8,370,020 x 163,027 10,718 4,544,372 1,235,172 3,309,200 x x x – 2,799,754 8,464,778 x 169,888 11,095 5,657,338 2,151,938 3,505,400 x x x – 3,462,415 8,657,239 x 176,606 11,520 6,556,658 3,031,258 3,525,400 x x x – 3,462,946 8,631,465 x 185,109 12,109 6,099,280 2,573,880 3,525,400 x x x – 3,413,798 8,936,660 x 201,295 13,152 9,141,750 3,898,250 5,243,500 x x x – 3,617,666 8,228,466 x *) Starting December 1996, General Account of State Treasury has been included only in the NBR's balance sheet.**) Starting December 1996, this item has been included in General Account of State Treasury.

36*



Period





Dec.*1997 Jan.



(continued) - millions of lei; end of period - LIABILITIES FOREIGN LIABILITIES Total Short-termSettlements Other Interests Profit Net unfa- Other Total Deposits Loans SDRwith IMF precious and com- paid vourable of from purchases(G.O. 30/ metals missions 1) differences foreign foreign from IMF1996) to be from forex banks banks 2)

received assets andliabilitiesrevaluation

x 2,880 2,059 1,836 – 163 447,403 – – – – – x 7,021 709 14,750 – 5,172 917,173 183,557 138,079 – – 138,079 x 28,232 14,699 58,648 – 77,046 2,002,527 203,655 203,655 – – 203,655 x 93,164 42,261 323,108 – 110,047 5,821,481 657,328 657,328 – – 657,328 x 94,768 44,565 323,108 101,447 150,381 6,311,200 657,328 657,328 – – 657,328 x 95,365 78,529 416,551 168,272 128,461 6,686,457 657,328 657,328 – – 657,328 x 95,372 110,382 477,134 210,695 130,292 6,750,210 657,328 657,328 – – 657,328 x 153,671 138,738 228,087 216,942 110,037 7,193,279 657,328 657,328 – – 657,328 x 62,435 177,658 296,618 2,559,311 135,546 11,465,008 2,304,169 2,304,169 – – 2,304,169 x 33,879 207,036 405,068 2,553,732 125,064 11,884,740 2,280,891 2,280,891 – – 2,280,891 x 34,686 232,917 440,927 2,551,735 100,450 12,365,763 2,237,789 2,237,789 – – 2,237,789 x 35,387 226,408 520,975 2,549,065 127,987 12,532,967 2,237,789 2,237,789 – – 2,237,789 x 36,912 216,814 761,409 2,539,459 162,418 12,907,076 2,345,928 2,345,928 – 105,360 2,240,568 x 38,530 239,490 878,520 2,536,676 182,254 13,519,499 2,302,585 2,302,585 – 105,120 2,197,465 x 39,408 320,052 923,622 2,540,192 180,267 13,717,904 2,285,272 2,285,272 – 106,200 2,179,072 x 40,312 310,478 993,677 – 217,326 13,708,498 2,425,549 2,425,549 – 106,020 2,319,529 x 41,293 357,843 993,677 – 234,830 13,528,123 2,434,618 2,434,618 – 106,800 2,327,818 x 41,984 412,868 1,084,036 – 231,414 13,558,895 2,465,334 2,465,334 – 108,600 2,356,734 x 42,507 449,303 1,111,490 – 303,823 13,631,518 2,548,910 2,548,910 – 110,820 2,438,090 x 43,462 445,373 118,316 – 295,567 13,199,098 2,616,658 2,616,658 – 112,740 2,503,918 x 44,115 540,858 120,078 829,234 331,440 14,447,595 2,452,072 2,452,072 – – 2,452,072 x 50,386 525,628 60,791 829,301 309,012 15,505,406 2,787,917 2,787,917 – 296,250 2,491,667 x 51,674 377,569 3,597 834,282 241,295 15,799,689 2,762,790 2,762,790 – 302,700 2,460,090 x 53,696 227,387 156,132 851,653 223,158 15,985,630 2,690,780 2,690,780 – 310,350 2,380,430 x 54,806 240,627 312,401 859,049 244,540 16,718,961 2,682,336 2,682,336 – 319,200 2,363,136 x 56,687 173,642 367,280 877,541 265,938 17,406,029 2,733,775 2,733,775 – 333,750 2,400,025 x 57,062 190,132 513,584 949,480 280,147 18,760,409 3,038,004 3,038,004 – 382,050 2,655,954 x 57,935 39,458 x – 285,098 18,072,556 3,503,555 3,065,295 – 386,700 2,678,595 x 59,985 43,692 x 16,040 306,964 17,883,136 3,425,383 2,976,583 – 396,000 2,580,583 x 60,197 1,557 x 73,433 325,210 17,809,230 3,800,718 3,171,958 – 428,700 2,743,258 x 26,790 1,226 x 101,825 369,292 18,284,435 3,823,853 3,118,973 – 440,550 2,678,423 x 27,462 897 x 92,415 404,226 17,546,793 3,651,745 2,952,625 – 436,950 2,515,675 x 31,207 890 x 1,562,635 445,413 21,628,016 4,812,764 2,429,214 – – 2,429,214 x 32,231 889 x 1,587,096 448,499 22,449,477 5,431,949 2,375,209 – – 2,375,209 x 34,159 888 x 1,663,077 439,885 22,346,415 5,636,607 2,455,542 – – 2,455,542 x 36,234 863 x 1,677,846 462,080 22,242,518 5,396,723 2,378,453 – – 2,378,453 x 37,167 882 x 1,706,673 472,551 23,209,518 5,439,724 2,355,709 – – 2,355,709 x 42,308 897 x 1,720,585 530,193 25,369,845 7,042,259 2,418,029 – – 2,418,029 x 43,144 876 x 1,900,305 542,991 26,302,684 7,317,295 2,488,195 – – 2,488,195

2,179,167 54,073 5,261 x – 391,394 20,753,695 7,807,318 2,626,383 – – 2,626,383 2,168,450 55,561 3,588 x 1,528,168 416,255 21,956,693 11,084,790 3,739,810 – – 3,739,810 2,258,976 55,903 3,230 x 3,068,453 403,419 24,807,626 14,192,127 4,701,607 – – 4,701,607 4,734,039 64,031 2,880 x 2,200 486,303 24,587,085 12,742,642 4,161,822 – – 4,161,822 4,393,240 67,167 2,526 x 34,870 492,583 26,905,346 13,135,824 4,747,006 – – 4,747,006 7,490,300 70,449 2,523 x 175,881 459,020 33,952,085 13,378,604 4,766,626 – – 4,766,626 8,122,815 84,029 2,518 x 2,107,988 437,885 39,624,209 12,713,457 4,432,329 – – 4,432,329 8,122,815 102,665 4,362 x 2,030,781 533,723 41,136,883 12,915,404 4,509,764 – – 4,509,764 8,128,152 115,187 2,530 x 1,870,328 448,520 40,879,023 12,827,980 4,485,532 – – 4,485,532 7,633,075 125,278 2,578 x 1,668,776 444,141 44,223,684 14,395,165 5,981,145 760,600 – 5,220,545 7,633,011 109,637 2,584 x 1,469,602 2,356,891 43,729,337 14,515,657 6,150,027 773,900 – 5,376,127 7,645,063 126,160 2,580 x 1,329,344 2,353,878 48,266,765 14,234,631 6,045,469 786,000 – 5,259,469 5,030,483 196,477 127,818 x – 2,364,300 48,612,053 14,223,217 5,951,353 802,300 – 5,149,053 5,030,483 102,210 12,064 x – 2,628,450 48,779,136 14,744,200 6,125,911 824,800 – 5,301,111 5,043,128 106,844 11,693 x 5,264 2,546,104 48,088,616 14,402,740 5,889,660 810,500 – 5,079,160 5,047,116 116,212 11,687 x – 2,551,836 48,113,807 14,744,369 6,123,137 849,000 – 5,274,137 5,047,116 121,625 18,861 x – 2,654,917 48,437,377 14,311,159 6,040,954 834,500 – 5,206,454 5,767,156 122,089 20,219 x – 2,654,680 51,882,799 14,164,107 5,992,807 851,100 – 5,141,707 5,769,564 125,882 21,509 x – 2,439,139 51,790,221 14,190,885 5,900,448 867,000 – 5,033,448 5,769,564 85,835 23,233 x – 2,491,388 53,327,831 14,178,459 5,975,997 874,400 – 5,101,597 5,772,536 99,534 24,524 x – 2,568,184 52,729,048 14,424,384 5,966,432 892,400 – 5,074,032 5,775,343 109,974 25,697 x – 2,746,225 53,789,576 14,397,030 5,405,413 – – 5,405,413 5,775,343 115,564 26,934 x – 2,713,624 53,839,895 15,595,067 5,748,594 – – 5,748,594 5,841,381 133,572 28,113 x – 2,933,594 51,662,461 14,881,134 5,566,478 – – 5,566,478 3,922,726 123,853 1,662,899 x – 2,518,988 55,254,473 17,632,198 5,898,147 – – 5,898,147

1) Starting December 1995, it has been included under "Capital accounts".2) Starting December 1994, the considered exchange rate "Leu/SDR" is that for the end of each month.

37*



Period





Dec.*1997 Jan.



(continued) - millions of lei; end of period -DOMESTIC LIABILITIES

BIS Medium- and long-term Foreign Total Currency In Funds for foreign participationsdeposits Total Loans Bonds liabilities issue transit Total IMF IBRD BIS IFC

from in lei accountsforeign payablebanks to

deposi-tors

– – – – x 447,403 98,034 49,365 26,975 26,211 376 337 52 45,479 – – – x 733,616 194,540 95,364 46,049 42,577 718 1,835 284

– – – – x 1,798,872 461,686 – 217,283 204,521 3,854 4,465 798 – – – – x 5,164,153 1,125,776 26,724 701,777 660,125 12,357 12,387 2,510 – – – – x 5,653,872 1,079,993 9,971 706,268 660,125 12,854 14,076 2,852 – – – – x 6,029,129 1,198,995 19,374 709,366 660,125 13,197 15,241 3,088 – – – – x 6,092,882 1,173,408 6,426 711,431 660,125 13,425 16,017 3,245 – – – – x 6,535,951 1,307,917 9,492 711,664 660,125 13,451 16,105 3,263 – – – – x 9,160,840 1,392,256 3,540 1,835,338 1,778,223 13,451 16,105 3,263 – – – – x 9,503,229 1,513,658 16,533 1,847,026 1,778,223 24,665 16,279 3,298 – – – – x 10,026,575 1,748,263 16,169 1,847,386 1,778,223 24,702 16,386 3,324 – – – – x 10,193,119 1,800,809 19,365 1,848,120 1,778,223 24,734 16,512 3,739 – – – – x 10,561,148 1,896,588 11,084 1,849,737 1,778,223 24,891 17,046 3,860 – – – – x 11,216,914 1,988,290 18,109 1,849,619 1,778,223 24,880 17,008 3,851 – – – – x 11,432,632 2,069,716 29,902 1,850,149 1,778,223 24,931 17,182 3,891 – – – – x 11,282,949 2,399,336 20,600 1,850,061 1,778,223 24,922 17,153 3,884 – – – – x 11,093,505 2,241,638 8,141 1,850,443 1,778,223 24,959 17,279 3,913 – – – – x 11,093,561 2,273,251 38,535 1,851,325 1,778,223 25,045 17,571 3,979 – – – – x 11,082,609 2,232,778 21,831 1,852,413 1,778,223 25,151 17,930 4,060 – – – – x 10,582,440 2,596,626 33,960 1,853,354 1,778,223 25,242 18,241 4,130 – – – – x 11,995,523 2,491,445 32,105 2,312,229 2,228,915 25,405 18,794 4,256 – – – – x 12,717,489 2,711,479 77,310 2,339,434 2,228,915 51,444 19,172 4,341 – – – – x 13,036,899 2,924,894 43,938 2,340,839 2,228,915 51,567 19,585 4,436 – – – – x 13,294,850 2,993,478 31,947 2,342,993 2,228,915 51,712 20,085 5,027 – – – – x 14,036,625 3,216,828 32,091 2,344,940 2,228,915 51,881 20,657 5,170 – – – – x 14,672,254 3,332,784 32,418 2,348,141 2,228,915 52,158 21,599 5,406 – – – – x 15,722,405 3,522,023 31,475 2,358,766 2,228,915 53,077 24,725 6,188 – 438,260 438,260 – x 14,569,001 3,952,715 – 2,359,790 2,228,915 53,166 25,026 6,264 – 448,800 448,800 – x 14,457,753 3,568,290 23,926 2,361,836 2,228,915 53,343 25,628 6,414 – 628,760 628,760 – x 14,008,512 3,428,431 10,937 2,369,030 2,228,915 53,965 27,744 6,944 – 704,880 704,880 – x 14,460,582 3,450,551 56,885 2,371,636 2,228,915 54,191 28,511 7,136 – 699,120 699,120 – x 13,895,048 3,679,268 30,631 2,370,844 2,228,915 54,122 28,278 7,077 – 2,383,550 973,830 1,409,720 x 16,815,252 3,695,736 43,756 3,327,769 3,185,324 54,231 27,909 7,170 – 3,056,740 938,680 2,118,060 x 17,017,528 4,105,814 41,387 3,331,048 3,185,324 54,451 29,394 7,357 – 3,181,065 971,850 2,209,215 x 16,709,808 4,133,814 35,679 3,342,699 3,185,324 62,876 30,433 7,617 – 3,018,270 790,500 2,227,770 x 16,845,795 4,296,112 59,544 3,343,589 3,185,324 62,953 30,695 7,682 – 3,084,015 815,250 2,268,765 x 17,769,794 4,521,374 41,332 3,345,895 3,185,324 63,235 30,695 7,923 – 4,624,230 1,434,375 3,189,855 x 18,327,586 4,731,081 26,046 3,349,647 3,185,324 63,561 31,792 8,200 – 4,829,100 1,418,445 3,410,655 x 18,985,389 5,096,207 34,792 3,357,746 3,185,324 64,178 34,859 8,725 – 5,180,935 1,371,900 3,809,035 x 12,946,377 5,905,718 – 187,072 – 65,445 39,170 9,803 – 7,344,980 2,016,880 5,328,100 x 10,871,903 4,696,517 – 249,670 – 70,862 57,585 14,412 – 9,490,520 2,632,960 6,857,560 x 10,615,499 4,667,364 66,235 309,464 – 76,036 75,174 18,815 – 8,580,820 2,378,640 6,202,180 x 11,844,443 5,128,782 – 284,779 – 73,900 67,913 16,997 – 8,388,818 2,205,363 6,183,455 x 13,769,522 5,793,203 – 288,047 – 74,183 68,874 17,238 – 8,611,978 1,997,848 6,614,130 x 20,573,481 5,765,944 – 288,674 – 74,237 69,059 17,284 – 8,215,106 1,586,931 6,628,175 66,022 26,910,752 6,841,809 36,011 3,499,681 3,185,324 102,542 68,214 17,073 – 8,339,618 1,649,713 6,689,905 66,022 28,221,479 7,139,803 – 3,510,545 3,185,324 103,336 70,913 19,439 – 8,276,426 1,463,071 6,813,355 66,022 28,051,043 7,709,061 – 3,516,061 3,185,324 103,810 72,524 19,880 – 8,347,998 1,489,508 6,858,490 66,022 29,828,519 8,828,373 267,088 3,520,547 3,185,324 104,195 73,835 20,240 – 8,299,608 1,289,833 7,009,775 66,022 29,213,680 8,932,699 – 3,524,967 3,185,324 104,575 75,126 20,593 – 8,123,140 1,310,000 6,813,140 66,022 34,032,134 9,366,617 – 3,528,987 3,185,324 104,920 76,301 20,915 – 8,205,842 1,337,167 6,868,675 66,022 34,388,836 9,630,513 – 3,534,326 3,185,324 105,386 77,805 21,349 – 8,552,267 1,374,667 7,177,600 66,022 34,034,936 8,965,168 – 3,541,404 3,185,324 106,028 79,591 21,948 – 8,447,058 1,350,833 7,096,225 66,022 33,685,876 9,102,037 – 3,538,953 3,185,324 105,620 80,504 21,567 – 8,555,210 1,415,000 7,140,210 66,022 33,369,438 8,750,091 – 3,549,922 3,185,324 106,719 82,416 22,592 – 8,204,183 1,147,438 7,056,745 66,022 34,126,218 9,673,726 – 3,557,520 3,185,324 106,305 81,009 22,206 – 8,105,278 1,170,263 6,935,015 66,022 37,718,692 10,102,319 – 3,563,309 3,185,324 106,779 82,620 22,648 – 8,224,415 1,192,125 7,032,290 66,022 37,599,336 10,896,283 40,679 3,677,226 3,185,324 215,738 84,164 23,071 – 8,136,440 1,202,300 6,934,140 66,022 39,149,372 10,972,660 – 3,679,927 3,185,324 215,949 84,882 23,268 – 8,391,930 1,227,050 7,164,880 66,022 38,304,664 11,516,439 – 3,685,908 3,185,324 216,463 86,629 23,747 – 8,925,595 1,270,225 7,655,370 66,022 39,392,546 11,875,807 – 3,697,926 3,185,324 217,360 89,677 24,582 – 9,780,451 874,471 8,905,980 66,022 38,244,828 11,804,229 – 3,710,458 3,185,324 218,370 93,114 25,524 – 9,248,634 919,142 8,329,492 66,022 36,781,327 11,979,755 – 3,727,010 3,185,324 219,769 97,871 26,828 – 11,668,029 998,366 10,669,663 66,022 37,622,275 12,305,972 27,058 3,757,469 3,185,324 222,251 106,306 29,141

*) Starting December 1996, General Account of State Treasury has been included only in the NBR's balance sheet.

38*



Period





Dec.*1997 Jan.




Deposits of foreign organisations Other Interbank Public depositsEBRD MIGA Total IMF IBRD MIGA bank liabilities Total Government Local Social Re-

deposits budget budgets security searchcurrent previous ** budget fundyear years ** **** **

– – 26,510 26,211 299 – 1,150 225,556 296 – 296 – – – 635 – 42,876 42,577 299 – 1,795 201,631 93,815 – 296 – – –

3,092 553 207,389 204,521 2,523 345 – 398,809 238,008 – 2,297 – – – 12,866 1,533 669,678 660,125 8,596 958 – 1,379,853 487,303 – 505 – 32,990 – 14,620 1,742 669,794 660,125 8,581 1,088 10 1,681,503 589,605 – 510 – 32,990 – 15,830 1,886 669,884 660,125 8,581 1,179 44 1,651,298 690,936 – 510 – 32,991 – 16,637 1,982 669,915 660,125 8,551 1,239 117 1,604,438 637,264 – 510 – 32,991 – 16,728 1,993 669,919 660,125 8,549 1,245 480 1,509,818 1,221,567 – 704 – 32,991 – 22,304 1,993 1,787,937 1,778,223 8,469 1,245 933 1,363,829 1,410,099 – 704 – 32,991 – 22,546 2,014 1,778,529 1,778,223 54 252 – 1,331,356 1,549,899 265,609 564 10,835 32,991 6,210 22,720 2,030 1,778,506 1,778,223 30 254 – 1,312,211 1,756,376 326,958 574 20,547 32,990 4,872 22,868 2,043 1,778,484 1,778,223 6 255 – 1,164,980 1,916,079 389,244 579 28,952 32,991 5,208 23,608 2,109 1,778,493 1,778,223 6 264 489 1,249,233 2,031,497 484,367 615 16,910 32,991 5,465 23,554 2,104 1,778,493 1,778,223 6 263 408 1,403,229 2,364,367 701,996 688 20,759 32,991 3,742 23,796 2,126 1,778,496 1,778,223 7 266 3 1,294,489 2,512,998 728,329 689 27,072 32,991 6,381 23,756 2,122 1,778,496 1,778,223 8 265 1,191 2,220,695 1,353,849 – 296 18,943 28,316 4,729 23,930 2,138 1,778,499 1,778,223 9 267 1,509 1,688,989 1,724,648 253,496 296 51,453 28,316 10,403 24,334 2,174 1,778,541 1,778,223 46 272 956 1,919,456 1,458,987 278,386 296 62,366 28,316 7,778 24,831 2,218 1,778,572 1,778,223 72 277 4,117 1,480,361 2,009,740 370,695 296 96,373 28,316 3,294 25,261 2,257 1,778,531 1,778,223 26 282 890 1,631,861 2,097,479 448,196 296 95,320 28,316 2,699 32,534 2,325 2,229,207 2,228,915 1 291 3,244 1,465,419 2,338,765 593,153 296 85,329 28,316 3,122 33,190 2,372 2,229,212 2,228,915 – 297 150 1,681,339 2,493,680 620,756 296 81,573 28,316 1,887 33,912 2,424 2,229,218 2,228,915 – 303 28 1,561,479 2,724,830 660,372 296 90,813 28,316 1,391 34,769 2,485 2,229,349 2,228,915 123 311 401 1,588,799 2,808,429 739,726 296 82,779 28,342 1,043 35,761 2,556 2,229,357 2,228,915 123 319 55 1,849,645 3,031,149 829,501 296 92,855 28,316 1,133 37,391 2,672 2,229,341 2,228,915 92 334 14 2,095,980 3,289,600 955,558 296 113,743 28,316 1,662 42,802 3,059 2,229,344 2,228,915 47 382 1 2,869,237 3,560,748 920,370 296 102,456 28,316 1,182 43,323 3,096 2,229,307 2,228,915 5 387 2,678 3,138,014 2,661,564 – 296 83,455 – 58 44,365 3,171 2,229,316 2,228,915 5 396 4,823 3,247,090 2,668,316 – 296 106,701 – 128 48,029 3,433 2,229,344 2,228,915 – 429 2,897 3,258,194 2,656,749 – 296 119,002 – – 49,356 3,527 2,229,356 2,228,915 – 441 5,591 3,274,008 2,974,917 – – 126,783 – – 48,953 3,499 2,229,352 2,228,915 – 437 6,092 2,859,376 2,519,509 – – 118,542 – – 49,591 3,544 3,185,767 3,185,324 – 443 17,921 3,434,274 2,532,339 – – 115,130 – 2,244 50,885 3,637 3,185,779 3,185,324 – 455 2,267 2,866,804 2,662,064 – – 126,955 – – 52,684 3,765 3,185,795 3,185,324 – 471 393 2,252,518 2,725,827 – – 137,915 – – 53,137 3,798 3,185,800 3,185,324 1 475 637 2,163,584 2,821,306 – – 129,459 – 245 54,801 3,917 3,185,814 3,185,324 – 490 265 2,661,679 2,929,703 – – 121,540 – – 56,717 4,053 3,185,831 3,185,324 – 507 871 2,580,251 3,391,154 – – 130,975 – 16 60,347 4,313 3,185,863 3,185,324 – 539 9,135 2,888,208 3,588,483 – – 136,682 – – 67,808 4,846 3,185,930 3,185,324 606 – 18,637 3,105,547 15 x x x x x 99,687 7,124 3,186,215 3,185,324 891 – 48,294 2,898,711 34,035 x x x x x

130,138 9,301 3,186,487 3,185,324 1,163 – 1,441 3,293,243 267,350 x x x x x 117,567 8,402 3,186,374 3,185,324 1,050 – – 3,665,393 202 x x x x x 119,231 8,521 3,185,325 3,185,324 1 – – 4,410,699 789,580 x x x x x 119,550 8,544 7,307,203 7,306,038 97 1,068 – 4,289,490 1,187,486 x x x x x 118,088 8,440 7,354,646 7,306,038 47,553 1,055 – 5,486,526 2,872,633 x x x x x 122,760 8,773 7,335,688 7,306,038 28,553 1,097 – 7,169,174 1,960,295 x x x x x 125,550 8,973 7,337,063 7,306,038 29,903 1,122 – 7,357,421 1,075,863 x x x x x 127,818 9,135 7,337,083 7,306,038 29,903 1,142 – 8,350,496 971,843 x x x x x 130,054 9,295 7,336,835 7,306,038 29,635 1,162 – 9,163,672 674 x x x x x 132,087 9,440 7,336,715 7,306,038 29,497 1,180 – 12,225,733 1,248,242 x x x x x 134,826 9,636 7,337,849 7,306,038 30,607 1,204 – 11,678,694 669,896 x x x x x 138,607 9,906 7,337,883 7,306,038 30,607 1,238 – 12,458,157 770,661 x x x x x 136,204 9,734 7,337,760 7,306,038 30,505 1,217 – 11,658,013 1,437,563 x x x x x 142,674 10,197 7,337,700 7,306,038 30,387 1,275 – 12,923,438 328,471 x x x x x 152,653 10,023 7,337,506 7,306,038 30,215 1,253 – 11,605,868 1,156,070 x x x x x 155,716 10,222 8,505,503 8,474,462 29,763 1,278 – 12,545,619 1,550,615 x x x x x 158,516 10,413 8,615,381 8,474,462 139,617 1,302 – 11,538,814 1,688,206 x x x x x 160,002 10,502 8,615,255 8,474,462 139,480 1,313 – 11,082,349 2,981,613 x x x x x 163,027 10,718 8,615,046 8,474,462 139,244 1,340 – 10,388,794 2,394,522 x x x x x 169,888 11,095 8,614,937 8,474,462 139,088 1,387 – 11,059,826 2,657,733 x x x x x 176,606 11,520 8,614,720 8,474,462 138,818 1,440 – 11,040,513 2,543,482 x x x x x 185,109 12,109 8,614,371 8,474,462 138,395 1,514 – 11,758,641 68,361 x x x x x 201,295 13,152 8,615,689 8,474,462 139,583 1,644 – 13,443,811 23,086 x x x x x **) Starting December 1996, this item has been included in General Account of State Treasury.

39*



Period





Dec.*1997 Jan.




Capital accounts (own funds)Health- Deposits Restruc- Gold Other Foreign Unem- Supple- State General Total Statut- Reservecare of state- turing and extrabud- loans ployment mentary Treasury Account ory fundfund owned self fund silver getary ** benefit pension deposits of fund** financing ** revalua- funds fund fund ** State

institutions tion ** ** Treasury** **

– – – – – – – – – x 6,352 5,653 500 – – 7,480 51,518 1,626 – 32,895 – – x 10,253 5,000 5,147 – – 282 74,951 3,715 31,945 124,818 – – x 15,596 5,000 10,506 – – 170 2,000 2,023 90,428 321,342 – 37,845 x 31,752 5,000 26,661 – – 204 2,755 30,554 70,850 335,500 – 116,242 x 31,752 5,000 26,661 – – 51 2,734 75,972 96,753 355,439 – 126,487 x 41,536 5,000 36,446 – – 66 2,728 35,196 141,466 314,483 – 109,824 x 47,884 5,000 42,794 – – 70 420,776 47,231 139,435 350,207 – 230,154 x 55,631 5,000 50,541 – – 89 421,376 39,164 249,466 386,103 – 280,206 x 62,807 5,000 57,717

3,226 – 90 421,368 71,870 322,644 373,538 – 40,954 x 68,927 5,000 63,837 4,026 4 90 421,368 75,497 393,549 424,885 – 51,016 x 72,682 5,000 67,592 2,933 – 90 421,362 89,131 431,760 474,308 – 39,520 x 76,456 5,000 71,366 3,121 – 90 421,362 83,189 481,207 454,983 – 47,197 x 81,457 5,000 76,367 4,048 314 100 421,356 123,820 492,876 505,997 – 55,681 x 84,526 5,000 79,436 2,888 – 100 421,354 140,398 537,011 561,811 – 53,975 x 86,970 5,000 81,880 3,108 – 128 2,000 92,625 678,748 460,557 – 64,399 x 81,432 5,000 76,341 6,326 – 124 2,000 143,670 684,948 509,799 – 33,817 x 81,431 5,000 76,341 4,146 583 124 2,000 158,368 319,660 534,521 – 62,443 x 88,701 5,000 83,610 2,652 664 130 2,000 134,849 332,094 966,038 – 72,340 x 88,701 5,000 83,610 6,138 974 130 2,000 96,635 350,418 993,821 – 72,536 x 89,203 5,000 84,113 7,351 1,764 138 2,000 128,890 366,880 1,031,881 – 89,645 x 88,811 5,000 83,721 7,426 2,855 138 2,000 125,177 414,378 1,074,783 35,742 98,353 x 85,011 5,000 79,921

11,736 3,970 138 2,000 127,103 334,050 1,175,615 171,867 117,163 x 81,431 5,000 76,341 18,604 3,657 138 2,000 150,038 331,058 1,165,297 212,985 72,466 x 91,014 5,000 85,924

8,926 5,060 138 2,000 138,529 296,480 1,238,951 265,808 123,156 x 100,651 5,000 95,561 18,726 5,403 138 2,000 174,185 235,455 1,341,539 283,797 128,782 x 104,032 5,000 98,942 12,550 5,253 149 2,000 185,646 462,523 1,372,626 348,609 118,772 x 113,047 5,000 107,957

7,612 47,029 152 2,000 116,474 383,430 1,612,182 380,102 28,774 x 119,711 5,000 114,367 13,442 6,484 144 2,000 202,937 227,063 1,661,213 384,402 63,506 x 235,536 5,000 114,367

8,968 6,536 144 2,000 183,906 190,808 1,697,284 401,681 46,124 x 223,715 5,000 120,158 9,870 26,314 145 2,000 165,259 471,161 1,729,239 396,167 47,979 x 259,467 5,000 124,044

15,655 53,237 145 2,000 114,213 58,474 1,693,126 378,010 86,107 x 275,759 5,000 128,731 9,303 59,965 – 2,000 122,982 13,586 1,784,143 359,456 63,530 x –103,575 5,000 133,125

11,814 65,347 – 2,000 120,210 21,170 1,870,071 372,004 72,493 x 209,907 5,000 117,510 14,585 70,257 – 2,000 127,917 3,300 1,940,122 351,097 78,634 x 252,994 5,000 121,505 19,021 77,504 – 2,000 149,961 5,322 2,030,302 332,901 74,591 x 204,500 5,000 126,560 17,755 79,145 – 2,000 140,228 18,797 2,116,565 335,151 98,522 x 258,027 5,000 127,964 27,459 80,194 – 2,000 482,109 13,403 2,206,619 338,217 110,162 x 279,577 5,000 131,778 24,971 82,131 – 2,000 512,304 34,228 2,307,125 330,847 158,195 x 175,436 5,000 135,930

x x x x 15 x x x x – 141,146 5,000 135,802 x x x x 28 x x x x 34,007 254,416 5,000 125,084 x x x x 13,047 x x x x 254,303 179,772 5,000 142,001 x x x x 202 x x x x – 482,361 5,000 142,458 x x x x 69 x x x x 789,511 460,914 5,000 147,276 x x x x 7,157 x x x x 1,180,329 155,810 5,000 158,555 x x x x 2,472,773 x x x x 399,860 –8,835 5,000 162,623 x x x x 864,264 x x x x 1,096,031 200,269 5,000 153,855 x x x x 497,377 x x x x 578,486 227,526 5,000 164,311 x x x x 497,306 x x x x 474,537 –181,276 5,000 168,079 x x x x 629 x x x x 45 –331,189 5,000 145,233 x x x x 350 x x x x 1,247,892 –468,018 5,000 137,738 x x x x 51 x x x x 669,845 511,604 5,000 188,036 x x x x 70 x x x x 770,591 85,468 5,000 188,036 x x x x 51,052 x x x x 1,386,511 –267,532 5,000 188,036 x x x x 11 x x x x 328,460 –649,975 5,000 188,036 x x x x 46 x x x x 1,156,024 –353,812 5,000 188,036 x x x x 171 x x x x 1,550,444 –786,258 5,000 188,036 x x x x 130 x x x x 1,688,076 –1,157,189 5,000 188,036 x x x x 3,259 x x x x 2,978,354 –687,448 100,000 93,036 x x x x 254 x x x x 2,394,268 –789,490 100,000 93,036 x x x x 389 x x x x 2,657,344 –846,570 100,000 93,036 x x x x 602 x x x x 2,542,880 –798,185 100,000 93,036 x x x x 551 x x x x 67,810 –1,093,446 100,000 93,036 x x x x 168 x x x x 22,918 193,569 100,000 93,225

*) Starting December 1996, General Account of State Treasury has been included only in the NBR's balance sheet.**) Starting December 1996, this item has been included in General Account of State Treasury.

40*



Period





Dec.*1997 Jan.




Other liabilitiesProfit Other Gold Total Profit Forex Net Gold Creditors Income Other

funds and 2) assets and favourable revaluation from to besilver liabilities differences account foreign receivedrevaluation revaluation from foreign (NBR) operationsfund fund assets and 3) 1) 1) liabilities

revaluation– – 199 13,166 3,178 652 – x 3,830 2,059 3,447 – – 106 47,295 14,750 254 – x 20,724 709 10,860 – – 90 260,102 58,648 254 – x 50,438 14,699 136,062 – – 90 741,290 323,108 254 – x 66,485 42,261 309,183 – – 90 884,977 518,801 254 – x 66,485 44,565 254,872 – – 90 1,047,696 645,839 254 – x 66,485 78,529 256,589 – – 90 1,241,999 800,699 254 – x 66,485 110,382 264,180 – – 90 1,049,464 621,185 254 – x 66,485 138,741 222,801 – – 90 1,304,103 743,593 254 – x 179,096 177,658 203,502 – – 90 1,397,302 818,689 254 – x 179,096 207,036 192,228 – – 90 1,494,983 894,175 254 – x 179,096 232,917 188,541 – – 90 1,588,825 994,189 254 – x 179,096 226,408 188,879 – – 90 1,662,570 1,055,573 254 – x 179,096 216,814 210,834 – – 90 1,729,874 1,104,450 254 – x 179,096 239,490 206,585 – – 90 1,809,908 1,106,136 254 – x 179,096 320,052 204,372 – – 90 1,577,289 993,677 254 – x 179,096 310,478 93,786 – – 90 1,718,208 1,139,061 254 6,145 – 179,096 357,843 35,810 – – 90 1,683,809 1,114,575 254 11,470 – 179,096 412,868 –34,453 – – 90 1,614,097 1,149,109 254 21,128 – 179,096 449,303 –184,792 – – 90 500,537 147,590 254 24,945 – 179,096 445,373 –296,721 – – 90 1,034,299 71,599 254 – – 224,488 540,858 197,101 – – 90 1,099,874 –4,076 254 – 259,100 224,488 525,628 94,480 – – 90 1,130,242 191,648 254 – 259,425 224,488 377,569 76,858 – – 90 1,208,440 384,393 254 – 259,832 224,488 227,387 112,086 – – 90 1,231,909 452,021 254 – 259,832 224,488 240,627 54,687 – – 90 1,239,944 632,313 254 – 259,832 224,488 173,642 –50,585 – – 90 1,037,764 719,908 254 – 259,796 224,488 190,132 –356,814 – 344 x 105,222 x x 253 91 224,488 39,458 –159,068

115,825 344 x 118,620 x x – 725 224,488 43,692 –150,285 98,213 344 x –170,785 x x – 725 224,488 13 –396,011

130,079 344 x –161,829 x x – 950 224,488 12 –387,279 141,684 344 x –75,783 x x – 12,904 224,488 12 –313,187

–242,044 344 x 681,265 x x – 13,314 320,813 12 347,126 87,053 344 x 612,458 x x – 13,616 320,813 12 278,017

126,145 344 x 780,089 x x – 13,628 320,813 – 445,648 72,596 344 x 770,723 x x – 13,787 320,813 – 436,123

124,719 344 x 825,705 x x – 111,366 320,813 – 393,526 142,455 344 x 783,128 x x – 131,589 320,813 13 330,713

34,162 344 x 649,519 x x – 132,735 320,813 9 195,962 – 344 x 402,312 x x 96,332 – 320,813 8 –14,841

123,988 344 x –495,955 x x 317,152 – 320,813 8 –1,133,928 32,427 344 x –1,355,857 x x 476,222 – 320,713 8 –2,152,800

334,559 344 x –903,448 x x 425,785 – 320,813 8 –1,650,054 308,294 344 x –1,158,246 x x 499,342 – 320,813 8 –1,978,409

–8,089 344 x 1,578,874 x x 238,069 – 735,836 8 604,961 –176,802 344 x 828,281 x x 174,957 – – 8 653,316

41,070 344 x 905,705 x x 309,019 – – 8 596,678 57,871 344 x 828,048 x x 334,161 – – 8 493,879

–354,699 344 x 734,365 x x 389,651 – – 8 344,706 –481,766 344 x 586,022 x x 376,580 – – 8 209,434 –611,100 344 x 793,858 x x 576,664 – – – 217,194 318,224 344 x 1,025,954 x x 643,005 – – – 382,949

–107,912 344 x 876,195 x x 587,288 – – – 288,907 –460,912 344 x 879,082 x x 549,795 – – – 329,287 –843,355 344 x 1,129,791 x x 1,021,689 – – – 108,102 –547,192 344 x 1,149,340 x x 969,478 – – – 179,862 –979,638 344 x 2,237,585 x x 1,399,392 – – – 838,193

–1,350,569 344 x 2,299,936 x x 1,524,920 – – – 775,016 –880,828 344 x 2,505,017 x x 1,792,026 – – – 712,991 –982,870 344 x 2,493,445 x x 1,900,231 – – – 593,214

–1,039,950 344 x 2,332,887 x x 2,102,553 – – – 230,334 –991,565 344 x 1,329,611 x x 1,447,097 – – – –117,486

–1,286,826 344 x 1,726,635 x x 1,967,015 – – – –240,380 – 344 x –744,379 x x – – – – –744,379

1) Starting December 1995, it has been included under "Capital accounts – Other funds".2) Starting December 1995, it has been included under "Capital accounts".3) Until December 1994, it was included under "Public deposits – Gold and silver revaluation".

41*


15. AGGREGATE BALANCE SHEET OF BANKS- millions of lei; end of period -

Period ASSETS FOREIGN ASSETSTotal Convertible currencies Non-convertible currencies

Total Cash Deposits Participa- Foreign Other Total Cash Deposits Claims Otherand with tions in securities and with oncheques foreign foreign che- foreign bilateral

banks banks ques banks pay-mentagree-ments

1990 Dec. 1,071,178 41,067 19,590 531 16,877 1,956 4 223 21,477 111 – 11,082 10,284 1991 Dec. 2,289,674 104,697 67,944 3,572 51,860 10,733 19 1,761 36,753 2 – 36,750 – 1992 Dec. 4,002,050 386,632 363,278 12,300 287,649 22,367 5,143 35,818 23,355 – – 23,355 – 1993 Dec. 9,843,462 1,311,817 1,284,680 44,508 983,368 68,353 107,144 81,306 27,137 – 1,511 25,626 – 1994 Jan. 10,912,440 1,394,684 1,366,977 52,127 1,013,454 77,130 140,075 84,191 27,707 – 1,608 26,099 –

Feb. 11,553,447 1,507,121 1,479,052 59,936 1,100,136 83,471 144,340 91,170 28,069 – 1,534 26,536 – Mar. 12,336,729 1,573,767 1,546,813 54,546 1,146,689 88,789 141,787 115,002 26,954 – 145 26,809 – Apr. 12,830,477 1,628,645 1,599,616 58,744 1,217,574 89,883 149,105 84,311 29,029 – 2,200 26,829 – May 13,297,346 1,643,379 1,614,716 70,972 1,233,442 90,759 155,195 64,349 28,663 – 1,790 26,873 – Jun. 14,446,393 1,821,817 1,793,845 73,756 1,418,574 94,324 132,044 75,146 27,973 – 1,582 26,391 – Jul. 15,645,997 1,878,151 1,850,596 72,639 1,444,914 94,535 155,741 82,768 27,555 – 1,071 26,484 – Aug. 16,739,849 2,007,132 1,979,891 61,809 1,578,788 94,533 168,294 76,467 27,241 – 811 26,430 – Sep. 17,904,603 2,165,106 2,158,693 140,460 1,686,845 99,889 170,022 61,477 6,413 – 492 5,921 – Oct. 19,213,504 2,321,410 2,315,306 61,038 1,912,793 102,271 182,285 56,920 6,104 – 130 5,974 – Nov. 20,415,518 2,456,668 2,451,509 52,661 2,030,648 100,337 199,920 67,943 5,159 – – 5,159 – Dec. 20,415,121 2,745,965 2,740,798 69,636 2,238,111 100,356 216,000 116,694 5,167 – 24 5,143 –

1995 Jan. 20,108,411 2,927,766 2,921,749 54,343 2,196,565 122,967 436,899 110,975 6,017 – – 6,017 – Feb. 21,025,071 2,993,604 2,987,442 62,525 2,266,003 125,858 407,894 125,162 6,162 – – 6,162 – Mar. 22,318,424 2,868,359 2,861,774 66,742 2,090,904 132,404 417,234 154,490 6,585 – – 6,585 – Apr. 23,386,790 2,717,950 2,711,922 75,368 1,941,676 134,805 387,651 172,422 6,028 – – 6,028 – May 24,561,896 2,876,313 2,870,123 84,680 2,034,002 138,735 420,320 192,387 6,190 1 – 6,189 – Jun. 25,015,799 2,843,106 2,837,118 78,994 2,230,060 141,282 179,754 207,028 5,988 – – 5,988 – Jul. 26,244,444 2,727,365 2,721,253 109,741 2,046,546 145,373 179,596 239,997 6,112 – – 6,112 – Aug. 27,398,409 2,628,581 2,622,481 108,778 1,905,619 143,680 210,041 254,362 6,100 – – 6,100 – Sep. 28,660,855 2,467,974 2,462,052 138,597 1,709,751 150,564 201,741 261,399 5,922 – – 5,922 – Oct. 30,867,479 2,448,653 2,442,385 91,164 1,676,365 159,154 198,011 317,691 6,268 – – 6,268 – Nov. 33,320,052 3,007,453 3,000,444 97,210 2,098,080 179,538 227,341 398,275 7,009 – – 7,009 – Dec. 32,440,153 3,398,771 3,391,647 108,931 2,550,104 182,213 171,638 378,760 7,124 22 – 7,102 –

1996 Jan. 32,160,403 3,123,059 3,115,744 115,945 2,250,099 181,569 210,398 357,733 7,315 – – 7,313 2 Feb. 34,191,185 3,485,266 3,477,245 122,044 2,563,735 200,321 159,740 431,405 8,021 – – 8,021 – Mar. 36,336,074 3,834,807 3,826,896 110,325 2,887,591 203,017 183,703 442,260 7,911 – – 7,911 – Apr. 36,740,154 3,554,790 3,547,094 124,087 2,606,939 198,990 179,152 437,926 7,696 – – 7,696 – May 37,884,793 3,694,205 3,686,540 119,506 2,759,673 200,632 198,390 408,339 7,665 – – 7,665 – Jun. 38,912,411 3,688,225 3,680,317 119,634 2,729,667 207,888 194,278 428,849 7,908 – – 7,908 – Jul. 41,078,666 4,247,610 4,239,206 142,344 3,068,048 219,202 327,151 482,462 8,404 – – 8,404 – Aug. 42,589,372 4,041,711 4,033,168 127,132 2,883,368 221,376 302,974 498,320 8,543 – – 8,543 – Sep. 44,689,682 4,039,309 4,030,749 160,929 2,958,628 225,476 185,341 500,375 8,560 – – 8,560 – Oct. 50,012,068 4,400,989 4,392,148 135,195 3,193,872 235,991 316,546 510,544 8,841 – – 8,841 – Nov. 53,390,523 4,734,019 4,724,755 143,486 3,421,177 253,082 343,966 563,044 9,264 – – 9,264 –

Dec.* 55,022,654 6,554,186 6,544,006 188,696 5,100,216 281,384 344,326 629,384 10,180 – – 10,180 – 1997 Jan. 62,509,661 7,701,445 7,686,988 300,566 5,767,709 397,511 361,049 860,153 14,457 – – 14,457 –

Feb. 71,702,355 10,336,909 10,318,245 622,477 7,736,493 507,661 489,493 962,121 18,664 – – 18,664 – Mar. 71,368,686 9,411,294 9,394,121 481,457 7,023,264 463,257 658,215 767,927 17,173 – – 17,173 – Apr. 74,144,487 8,171,810 8,154,759 455,991 5,884,182 463,922 705,090 645,574 17,050 – – 17,050 – May 78,010,869 8,375,964 8,368,143 437,056 6,219,864 562,561 522,084 626,577 7,821 – – 7,729 92 Jun. 82,811,259 8,394,335 8,386,583 336,205 6,278,373 557,510 505,601 708,893 7,752 – – 7,625 128 Jul. 86,413,550 9,807,391 9,799,430 391,960 7,897,517 559,374 403,480 547,099 7,961 – – 7,926 35 Aug. 89,997,697 11,040,037 11,031,913 404,509 9,168,757 571,134 327,113 560,399 8,124 – – 8,101 23 Sep. 92,053,435 11,210,283 11,202,003 354,882 9,533,224 590,894 213,912 509,091 8,280 – – 8,256 24 Oct. 95,581,285 11,901,642 11,893,467 313,880 10,328,258 615,776 182,191 453,362 8,176 – – 8,160 16 Nov. 96,427,619 12,884,702 12,876,411 320,577 11,236,343 617,928 180,585 520,978 8,292 – – 8,277 15 Dec. 100,187,879 13,555,484 13,547,066 403,050 11,686,956 626,041 230,081 600,938 8,418 – – 8,403 15

1998 Jan. 100,692,245 12,617,813 12,608,376 476,598 10,634,347 691,118 274,800 531,513 9,437 – 44 9,377 16 Feb. 102,659,472 12,648,117 12,638,799 420,746 10,796,655 682,902 213,821 524,675 9,318 6 98 9,214 – Mar. 108,877,627 11,814,288 11,804,588 520,962 9,749,883 714,408 249,081 570,255 9,699 7 210 9,482 – Apr. 108,773,578 10,295,784 10,286,215 467,206 8,284,042 709,028 224,423 601,515 9,569 7 242 9,320 – May 110,619,510 9,919,051 9,909,442 432,018 7,898,112 734,117 241,452 603,743 9,609 9 94 9,506 – Jun. 113,091,136 10,572,060 10,561,661 507,839 8,426,311 750,221 234,746 642,544 10,399 20 523 9,856 – Jul. 116,496,968 9,132,561 9,122,513 555,475 6,747,464 755,555 202,036 861,982 10,048 – 108 9,941 – Aug. 118,661,189 10,113,054 10,102,815 490,877 7,836,110 716,858 221,678 837,291 10,240 – 94 10,145 – Sep. 125,023,583 9,775,939 9,765,350 613,453 7,174,161 766,071 439,079 772,587 10,589 – 87 10,502 – Oct. 128,370,083 9,949,133 9,938,099 578,824 7,309,550 836,145 584,062 629,517 11,034 – 129 10,905 – Nov. 134,507,358 10,172,783 10,161,254 513,042 7,871,762 861,393 271,492 643,565 11,529 – 67 11,462 – Dec. 148,004,632 17,301,340 17,288,966 701,369 14,700,057 943,091 308,754 635,695 12,374 – 34 12,341 –

Note: Starting December 1992, foreign banks' branches have been included.*) Starting December 1996, General Account of State Treasury has been included only in the NBR's balance sheet.

42*


15. AGGREGATE BALANCE SHEET OF BANKS

Period





Dec.*1997 Jan.



(continued) - millions of lei; end of period -DOMESTIC ASSETSTotal Vault cash Domestic credit

Total Credit to non-governmentTotal In lei

Total Short-term creditTotal Current (compensation included) Overdue

Total Companies House- Other Totalmajority majority holds 1) state- privateowned capitalcapital

1,030,111 5,179 683,955 683,955 660,855 438,329 373,136 372,986 – 150 – 65,193 2,184,977 17,223 1,499,230 1,375,160 1,317,244 1,061,663 985,749 935,794 44,828 5,127 – 75,914 3,615,417 48,814 2,110,961 1,912,770 1,698,819 1,435,091 1,334,244 1,227,651 99,014 4,354 3,224 100,848 8,531,644 75,291 5,300,026 4,901,977 4,060,277 3,671,870 3,525,072 2,964,598 497,871 44,359 18,245 146,798 9,517,756 126,464 5,556,096 5,158,050 4,176,881 3,783,584 3,606,938 3,004,130 549,915 40,419 12,474 176,646 10,046,326 108,864 5,849,357 5,451,314 4,313,602 3,918,753 3,690,779 3,050,571 590,211 36,773 13,223 227,974 10,762,963 121,396 6,380,379 5,725,891 4,447,750 4,057,413 3,781,003 3,100,022 634,038 37,371 9,573 276,410 11,201,832 112,171 6,683,420 5,987,327 4,653,347 4,258,271 3,920,116 3,189,014 686,776 36,256 8,071 338,155 11,653,967 139,772 6,775,487 6,269,562 4,914,749 4,511,380 4,084,767 3,367,552 672,353 35,312 9,550 426,613 12,624,576 125,640 7,435,750 6,614,797 5,114,629 4,702,508 4,219,700 3,459,089 700,355 48,093 12,163 482,808 13,767,846 103,003 8,178,769 7,066,933 5,444,712 5,023,326 4,505,871 3,724,335 731,546 36,806 13,184 517,455 14,732,717 142,008 8,952,049 7,438,953 5,733,213 5,304,242 4,733,545 3,940,590 738,872 37,828 16,255 570,697 15,739,498 131,045 9,807,974 7,937,286 6,121,075 5,694,318 5,109,817 4,170,637 880,287 44,133 14,762 584,501 16,892,093 170,937 10,569,834 8,410,464 6,577,149 6,156,118 5,564,428 4,593,252 903,146 51,768 16,262 591,690 17,958,850 160,966 11,217,489 8,875,749 6,949,814 6,491,056 5,906,055 4,875,958 957,451 58,632 14,015 585,001 17,669,156 197,166 10,068,760 9,484,528 7,434,662 6,908,211 6,363,283 5,258,812 1,002,949 74,178 27,345 544,928 17,180,645 229,286 10,560,640 9,852,017 7,648,708 7,118,835 6,405,297 5,192,383 1,102,807 70,958 39,150 713,538 18,031,467 218,725 11,042,999 10,216,248 7,924,851 7,377,665 6,505,951 5,241,239 1,153,484 77,315 33,913 871,714 19,450,065 214,850 12,262,382 10,735,346 8,196,422 7,623,476 6,816,320 5,377,408 1,289,129 86,000 63,783 807,156 20,668,840 235,853 12,998,630 11,174,015 8,481,276 7,891,858 6,872,699 5,407,183 1,326,880 91,086 47,550 1,019,159 21,685,583 233,040 14,033,316 11,515,637 8,613,742 7,978,966 6,793,965 5,191,822 1,468,047 103,890 30,207 1,185,000 22,172,693 207,986 14,919,538 11,897,657 8,832,182 8,108,348 6,878,388 5,163,764 1,565,595 113,560 35,469 1,229,960 23,517,080 209,023 15,869,954 12,463,545 9,245,237 8,477,922 7,142,396 5,408,242 1,581,643 116,208 36,302 1,335,526 24,769,828 140,599 16,972,152 13,117,390 9,640,111 8,808,329 7,360,180 5,530,092 1,679,458 117,773 32,858 1,448,149 26,192,881 128,247 18,098,838 14,044,570 10,299,999 9,394,041 8,133,423 5,900,847 2,076,780 121,867 33,930 1,260,618 28,418,826 166,825 19,703,957 14,955,259 10,859,673 9,870,618 8,565,781 6,149,956 2,230,339 133,166 52,320 1,304,837 30,312,599 163,161 20,858,575 15,860,558 11,186,939 10,084,910 8,747,196 6,134,025 2,433,878 141,821 37,472 1,337,714 29,041,382 190,873 18,312,311 16,435,380 11,575,235 10,279,170 8,698,684 6,422,618 2,088,154 147,045 40,867 1,580,486 29,037,344 168,236 18,840,171 16,779,009 11,879,084 10,566,933 8,618,375 5,590,103 2,847,134 143,415 37,723 1,948,558 30,705,919 153,187 19,944,243 17,494,902 11,968,103 10,624,214 8,638,593 5,422,011 3,028,914 147,993 39,676 1,985,622 32,501,267 157,781 21,030,256 18,075,336 12,323,360 10,804,457 8,793,305 4,590,434 3,994,283 161,413 47,174 2,011,152 33,185,364 194,639 21,899,444 18,656,659 12,633,130 11,054,569 8,985,599 5,833,891 2,909,041 169,562 73,105 2,068,970 34,190,588 174,346 22,384,037 19,369,185 13,260,786 11,495,410 9,463,668 6,190,676 3,010,987 185,211 76,795 2,031,742 35,224,186 172,404 23,368,780 19,882,599 13,361,485 11,442,907 9,278,432 6,025,049 2,984,447 194,297 74,639 2,164,475 36,831,056 191,755 25,026,061 21,015,266 13,951,467 11,875,573 9,529,135 6,269,788 2,997,960 186,237 75,149 2,346,438 38,547,661 185,321 26,415,331 21,517,073 14,228,289 12,031,777 9,932,866 6,640,022 3,035,434 181,061 76,349 2,098,912 40,650,374 248,593 27,815,631 22,159,796 14,570,018 12,281,909 10,083,843 6,675,243 3,149,632 181,174 77,795 2,198,066 45,611,078 204,483 32,066,986 23,787,264 15,498,804 13,139,140 11,031,124 7,180,189 3,583,494 187,014 80,427 2,108,017 48,656,505 238,574 33,844,217 25,064,617 16,308,816 13,738,000 11,419,705 7,320,564 3,837,358 184,211 77,572 2,318,296 48,468,468 519,718 32,310,520 26,841,440 16,942,968 14,156,220 11,928,059 7,134,269 4,514,499 199,927 79,365 2,228,161 54,808,216 257,597 38,159,300 32,168,282 16,930,845 14,108,642 11,600,066 7,004,187 4,327,700 202,903 65,276 2,508,577 61,365,446 298,734 43,185,433 37,344,272 16,793,692 13,980,803 11,298,732 7,289,227 3,754,884 185,243 69,378 2,682,071 61,957,393 384,098 40,994,823 35,081,532 16,582,763 13,540,722 10,380,396 6,736,342 3,422,836 159,275 61,943 3,160,326 65,972,677 374,873 42,012,292 34,636,679 16,413,130 13,226,208 9,984,701 6,459,086 3,358,065 107,250 60,301 3,241,507 69,634,905 341,152 43,525,477 35,971,428 15,284,545 12,875,347 9,782,856 6,234,597 3,320,633 167,136 60,490 3,092,491 74,416,924 475,448 43,577,204 36,195,679 15,590,125 13,148,763 9,846,782 6,106,194 3,513,342 165,041 62,204 3,301,982 76,606,159 380,884 44,912,934 37,372,980 16,013,010 13,487,979 10,068,499 6,108,935 3,727,646 173,839 58,078 3,419,480 78,957,659 357,921 46,605,450 39,668,335 16,753,861 14,145,836 10,675,334 6,451,933 3,989,826 162,261 71,314 3,470,501 80,843,151 465,358 48,519,358 38,216,570 14,897,989 12,350,738 10,296,609 5,768,596 4,233,554 172,523 121,937 2,054,129 83,679,643 404,649 47,487,374 39,733,240 15,791,272 13,052,272 11,041,230 5,894,024 4,778,263 192,190 176,753 2,011,042 83,542,916 458,392 45,502,518 36,245,999 16,159,658 13,253,446 11,261,883 5,788,154 5,191,422 196,276 86,031 1,991,562 86,632,395 426,834 46,999,700 35,900,662 16,232,369 12,853,429 11,069,600 5,568,724 5,156,336 233,192 111,347 1,783,829 88,074,432 457,757 49,921,950 38,245,741 16,998,302 13,468,823 11,469,717 5,307,968 5,741,800 294,696 125,253 1,999,106 90,011,355 450,236 51,928,288 40,260,789 18,007,279 14,321,819 12,252,512 5,461,208 6,280,009 326,044 185,252 2,069,307 97,063,340 547,247 53,998,169 41,319,059 18,495,720 14,682,563 12,542,078 5,400,521 6,601,261 324,644 215,651 2,140,486 98,477,793 564,224 57,330,602 42,404,302 19,415,841 15,371,440 13,068,310 5,532,047 7,033,238 349,879 153,147 2,303,130 100,700,458 571,688 59,418,239 43,726,467 19,355,569 15,455,688 13,118,338 5,498,595 7,065,907 383,113 170,723 2,337,350 102,519,076 587,762 61,543,961 45,141,131 20,003,143 15,962,510 13,606,752 5,674,324 7,331,614 408,562 192,252 2,355,758 107,364,407 531,699 66,198,813 46,296,315 20,744,814 16,661,663 14,188,546 5,955,531 7,552,842 470,019 210,154 2,473,116 108,548,134 740,186 65,963,342 47,782,142 21,187,659 16,984,099 14,364,926 5,861,199 7,768,116 516,616 218,995 2,619,173 115,247,644 633,762 69,572,251 51,006,988 22,682,195 18,181,189 15,671,769 6,009,601 8,848,356 594,119 219,692 2,509,421 118,420,950 612,215 71,635,070 53,924,555 23,818,425 19,161,872 16,564,361 5,988,692 9,695,003 656,364 224,302 2,597,511 124,334,575 871,749 73,854,371 56,435,604 24,555,172 19,749,176 17,136,559 5,928,003 10,248,810 736,588 223,158 2,612,617 130,703,292 771,666 77,919,531 59,086,517 24,272,609 19,351,643 16,661,936 5,702,361 9,912,569 839,465 207,540 2,689,707

1) Insurance companies included.

43*



Period





Dec.*1997 Jan.




Medium- and long-term creditTotal Current credit Overdue credit

Companies House- Other Total Companies House- Other Total Companiesmajority majority holds 1) majority majority holds 1) majority majoritystate- private state- private state- privateowned capital owned capital owned capitalcapital capital capital

65,193 – – – 222,526 217,299 199,440 329 17,530 – 5,228 5,196 – 75,642 200 72 – 255,581 251,306 175,470 19,332 56,505 – 4,275 4,179 20 93,838 5,958 323 730 263,728 259,075 171,138 36,073 51,347 517 4,652 3,861 657

111,363 31,645 3,523 267 388,407 379,325 193,687 109,768 73,059 2,811 9,081 5,731 2,636 131,922 41,374 3,098 252 393,297 383,133 201,146 107,194 71,994 2,799 10,164 5,810 3,335 171,312 51,792 4,567 303 394,850 383,235 196,314 111,708 71,551 3,662 11,615 6,342 4,140 209,854 60,097 5,962 497 390,338 377,829 196,387 106,423 70,275 4,744 12,509 6,719 4,862 256,631 74,523 6,474 527 395,076 376,157 191,764 110,840 69,963 3,590 18,919 12,752 5,040 321,678 96,847 7,461 627 403,370 382,190 190,462 117,540 69,503 4,684 21,180 13,751 6,198 382,087 91,574 7,681 1,467 412,121 386,853 188,331 120,416 73,856 4,250 25,268 17,210 6,392 401,584 106,654 8,316 901 421,385 387,525 192,876 116,588 74,620 3,442 33,861 25,255 6,836 433,485 127,012 8,581 1,620 428,971 393,759 184,078 129,354 77,356 2,971 35,212 25,533 7,962 416,913 156,675 9,414 1,498 426,757 400,915 166,964 147,152 83,222 3,577 25,843 14,867 9,218 406,651 174,136 9,118 1,784 421,031 393,989 137,500 160,713 93,578 2,198 27,042 7,657 7,180 373,516 200,770 9,246 1,470 458,758 428,905 148,234 174,088 104,343 2,240 29,853 7,362 10,378 354,944 173,726 9,268 6,990 526,451 492,388 171,097 201,490 112,412 7,389 34,063 6,567 25,589 490,715 200,842 10,658 11,323 529,874 505,097 173,002 207,502 118,549 6,044 24,777 6,812 15,853 582,712 267,069 11,274 10,659 547,186 519,088 170,241 217,626 122,837 8,384 28,098 6,887 18,958 533,432 257,846 11,320 4,559 572,946 538,444 174,726 226,697 128,908 8,113 34,502 6,893 25,218 686,485 317,767 12,323 2,584 589,418 555,426 176,210 238,289 132,894 8,033 33,992 7,094 23,313 847,675 320,887 13,476 2,963 634,776 592,457 175,650 274,927 134,529 7,350 42,320 8,257 25,777 927,865 283,668 14,582 3,844 723,834 657,857 182,661 318,321 146,322 10,553 65,978 20,863 42,101

1,011,580 302,786 16,680 4,480 767,315 705,649 182,872 352,105 159,836 10,836 61,666 12,054 46,360 1,096,840 329,342 17,062 4,905 831,782 765,606 174,550 398,356 169,662 23,038 66,177 12,356 50,271

893,627 343,642 18,911 4,438 905,959 814,456 168,757 438,620 182,653 24,426 91,503 32,927 54,516 920,903 359,487 19,951 4,496 989,055 903,825 177,874 500,517 199,132 26,304 85,229 23,738 57,304 956,617 359,544 17,457 4,096 1,102,029 1,006,819 210,479 556,489 209,699 30,152 95,210 34,112 58,070 844,835 713,209 19,406 3,036 1,296,066 1,160,053 264,259 630,171 223,853 41,771 136,012 50,709 82,299 698,205 1,227,272 19,949 3,133 1,312,151 1,169,487 244,841 644,262 239,859 40,525 142,664 32,039 106,735 727,464 1,234,557 20,320 3,281 1,343,888 1,201,375 254,862 655,657 251,244 39,611 142,514 34,119 104,066 832,855 1,156,119 18,727 3,452 1,518,903 1,360,233 264,311 791,929 257,245 46,748 158,670 34,339 119,868 961,843 1,085,158 18,896 3,073 1,578,561 1,415,042 265,544 822,276 277,345 49,877 163,519 53,269 103,598 992,562 1,017,229 19,098 2,853 1,765,376 1,452,066 269,742 842,350 292,445 47,529 313,311 147,710 158,816

1,131,303 1,011,267 19,129 2,776 1,918,579 1,496,428 275,622 852,834 311,094 56,878 422,151 186,541 228,456 1,306,166 1,016,458 19,962 3,852 2,075,894 1,585,882 289,980 897,315 328,589 69,998 490,012 178,777 303,662 1,064,293 1,010,729 20,057 3,833 2,196,512 1,660,989 302,221 941,750 342,910 74,107 535,523 190,640 335,761 1,130,630 1,040,514 22,297 4,625 2,288,109 1,733,604 324,258 955,182 379,097 75,068 554,505 177,654 366,947 1,026,897 1,054,041 23,792 3,287 2,359,664 1,796,578 326,673 986,428 410,826 72,652 563,085 184,989 367,593 1,194,551 1,095,080 26,780 1,885 2,570,816 1,958,493 345,749 1,063,511 477,261 71,972 612,323 205,933 395,655 1,064,356 1,134,204 27,791 1,810 2,786,748 2,041,882 371,529 1,066,672 527,674 76,007 744,866 222,593 510,060 1,228,877 1,247,203 29,179 3,317 2,822,203 2,067,837 395,657 1,056,668 536,210 79,302 754,367 223,767 517,044 1,440,358 1,207,626 29,639 4,448 2,812,889 2,024,151 352,428 1,057,966 546,494 67,263 788,738 235,218 539,310 1,778,541 1,350,669 27,551 3,565 3,042,041 1,899,670 291,008 1,001,202 546,018 61,443 1,142,370 261,312 865,524 1,854,167 1,367,122 18,221 1,997 3,186,923 1,785,060 223,080 967,145 535,041 59,794 1,401,863 286,867 1,099,107 2,039,507 1,024,982 25,960 2,042 2,409,198 1,725,208 217,316 924,153 527,304 56,436 683,990 108,721 557,684 2,200,253 1,073,892 25,795 2,042 2,441,361 1,715,543 211,488 919,975 524,018 60,063 725,818 116,034 579,281 2,325,050 1,066,739 25,418 2,273 2,525,031 1,706,231 203,339 914,596 529,966 58,330 818,800 187,868 599,376 2,382,122 1,058,534 27,161 2,684 2,608,026 1,733,297 204,725 922,779 549,443 56,350 874,729 192,480 650,493 1,069,275 957,049 24,549 3,255 2,547,251 1,684,644 157,151 911,570 557,651 58,272 862,606 174,288 676,689 1,015,102 970,486 23,422 2,031 2,739,000 1,868,050 151,645 962,860 696,830 56,715 870,950 180,314 679,395

983,455 982,189 23,242 2,677 2,906,212 2,285,026 200,294 1,065,483 971,491 47,757 621,187 128,151 481,783 741,022 1,013,112 24,822 4,872 3,378,940 2,722,778 258,238 1,120,335 1,296,944 47,260 656,162 125,748 519,201 735,988 1,176,836 41,718 44,564 3,529,479 2,638,576 323,079 864,398 1,327,723 123,375 890,904 146,623 644,305 683,542 1,282,215 41,757 61,794 3,685,460 2,917,213 316,332 1,144,940 1,389,717 66,224 768,246 84,655 647,558 744,618 1,270,268 40,637 84,963 3,813,157 3,032,703 305,496 1,215,185 1,466,804 45,218 780,453 82,063 662,328 812,632 1,401,191 42,680 46,626 4,044,401 3,208,815 301,699 1,408,839 1,457,418 40,859 835,585 88,172 727,646 835,429 1,408,234 41,814 51,873 3,899,880 3,080,783 293,088 1,233,777 1,509,771 44,147 819,097 89,894 706,106 819,427 1,442,043 44,003 50,285 4,040,633 3,116,279 286,723 1,231,829 1,553,817 43,909 924,354 100,241 800,807 840,333 1,529,586 46,387 56,810 4,083,151 3,194,672 281,297 1,260,888 1,611,543 40,943 888,479 98,941 762,595 911,453 1,597,181 51,103 59,436 4,203,560 3,291,658 283,572 1,283,450 1,681,489 43,147 911,902 95,134 782,118 848,308 1,550,226 50,916 59,970 4,501,006 3,560,037 342,479 1,360,422 1,814,153 42,982 940,969 101,189 806,273 879,589 1,602,554 54,290 61,077 4,656,553 3,695,989 347,637 1,379,071 1,909,924 59,357 960,564 68,744 856,638 911,607 1,582,432 56,430 62,148 4,805,995 3,810,976 353,852 1,416,555 1,977,666 62,903 995,019 63,985 894,060 941,537 1,551,032 57,125 140,012 4,920,967 3,836,083 312,699 1,457,470 2,003,583 62,331 1,084,884 67,160 980,595

1) Insurance companies included.*) Starting December 1996, General Account of State Treasury has been included only in the NBR's balance sheet.

44*



Period





Dec.*1997 Jan.




In Interbank Other assetsCredit to transit assets Total Credits Profit Net

Convertible currency credit government accounts taken paid unfavour.Total Current Overdue Frozen payable over 2) differ.

credit credit credit to by fromHouse- Other depos- banks foreignholds 1) itors (Law assets

7/92) &liabil.reval.

32 – 23,100 786 – 22,314 – – 323,100 17,877 – 7,985 2,853 77 – 57,915 44,413 202 13,300 124,070 10,015 489,175 169,334 13,778 24,870 21,311

131 4 213,951 207,437 6,513 – 198,191 220 1,038,300 417,124 9,541 136,986 14 706 9 841,700 788,719 52,982 – 398,049 1,293 2,314,299 840,736 x 56,242 – 760 259 981,169 903,545 77,624 – 398,046 – 2,401,618 1,433,578 x 280,843 149 826 306 1,137,711 1,046,613 91,099 – 398,043 588 2,421,283 1,666,234 x 224,988 – 884 43 1,278,141 1,169,760 108,381 – 654,488 413 2,556,493 1,704,281 x 130,735 25,517

1,068 58 1,333,980 1,198,230 135,750 – 696,093 456 2,464,498 1,941,286 x 80,613 25,694 1,151 80 1,354,813 1,207,532 147,281 – 505,925 181 2,444,906 2,293,621 x 105,070 20,551 1,263 403 1,500,168 1,347,734 152,434 – 820,953 2,379 2,506,134 2,554,673 x 127,671 23,939 1,467 303 1,622,221 1,458,223 163,998 – 1,111,836 – 2,634,631 2,851,443 x 96,981 26,876 1,570 147 1,705,740 1,532,032 173,708 – 1,513,096 2,223 2,607,942 3,028,494 x 113,225 34,024 1,669 89 1,816,210 1,617,202 199,008 – 1,870,688 5,029 2,741,949 3,053,501 x 140,780 35,449 1,806 10,400 1,833,315 1,631,296 202,019 – 2,159,370 5,622 2,905,463 3,240,237 x 191,554 39,704 1,857 10,255 1,925,935 1,707,560 218,375 – 2,341,740 9,434 3,033,018 3,537,943 x 223,194 38,291 1,826 81 2,049,867 1,956,283 93,584 – 584,232 19,191 4,295,224 3,088,815 x x 38,476 2,014 98 2,203,309 2,060,928 142,381 – 708,623 16,647 3,780,698 2,593,375 x x 39,991 2,168 85 2,291,398 2,138,200 153,198 – 826,751 13,634 3,854,295 2,901,814 x x 43,188 2,287 104 2,538,924 2,333,360 205,564 – 1,527,037 18,229 3,992,964 2,961,639 x x 14,291 2,521 1,064 2,692,738 2,444,840 247,898 – 1,824,616 18,248 4,119,032 3,297,077 x x 14,486 6,968 1,318 2,901,895 2,635,896 266,000 – 2,517,678 14,367 3,821,805 3,583,055 x x 24,856 2,940 74 3,065,475 2,762,584 302,890 – 3,021,881 24,803 3,830,998 3,189,370 x x 16,433 3,171 82 3,218,308 2,893,290 325,018 – 3,406,409 13,520 3,667,172 3,757,410 x x 18,437 3,500 50 3,477,279 3,114,181 363,098 – 3,854,762 29,640 3,673,265 3,954,172 x x 13,652 3,996 65 3,744,570 3,329,447 415,123 – 4,054,268 7,925 3,917,101 4,040,770 x x 23,857 4,112 75 4,095,587 3,651,592 443,994 – 4,748,697 26,875 4,439,079 4,082,090 x x 21,523 2,827 201 4,673,619 4,115,320 558,299 – 4,998,017 21,310 5,010,497 4,259,056 x x 46,936 2,917 88 4,860,145 4,340,488 519,657 – 1,876,931 41,174 5,559,151 4,937,874 x x 42,162 3,750 139 4,899,925 4,347,581 552,345 – 2,061,162 29,242 5,626,762 4,372,933 x x 18,796 4,111 218 5,526,800 4,863,215 663,585 – 2,449,340 55,710 5,524,140 5,028,639 x x 15,620 4,252 212 5,751,975 4,921,163 830,813 – 2,954,921 43,222 5,673,026 5,596,982 x x 14,860 4,321 2,332 6,023,529 5,163,798 859,732 – 3,242,785 41,009 5,270,655 5,779,618 x x 37,404 4,388 2,398 6,108,398 5,401,365 707,033 – 3,014,853 33,489 5,478,093 6,120,623 x x 18,109 4,650 2,504 6,521,113 5,751,095 770,018 – 3,486,181 59,331 4,880,462 6,743,208 x x 18,563 4,966 2,607 7,063,799 6,224,598 839,201 – 4,010,795 95,336 4,400,623 7,117,282 x x 22,512 5,734 3,389 7,288,784 6,415,634 873,150 – 4,898,258 77,643 4,280,885 7,588,480 x x 23,193 6,393 3,512 7,589,778 6,610,198 979,580 – 5,655,835 33,410 4,549,543 8,003,196 x x 26,467 6,443 4,062 8,288,460 7,238,732 1,049,728 – 8,279,722 30,629 4,906,790 8,402,192 x x 29,925 6,432 4,303 8,755,801 7,616,646 1,139,154 – 8,779,601 16,636 5,394,052 9,163,026 x x 35,543 6,642 5,572 9,898,472 8,930,989 967,483 – 5,469,080 47,654 5,535,928 10,054,648 x x 47,897 6,756 6,801 15,237,437 13,580,208 1,657,229 – 5,991,018 42,612 5,670,673 10,678,034 x x 50,715 7,233 6,978 20,550,580 18,126,692 2,423,888 – 5,841,161 23,790 5,921,190 11,936,299 x x 112,331 7,247 8,288 18,498,769 15,905,920 2,592,849 – 5,913,291 17,834 6,851,296 13,709,341 x x 120,425 7,644 8,245 18,223,549 15,346,637 2,876,912 – 7,375,613 2,536 8,335,497 15,247,480 x x 92,769 7,580 10,004 20,686,884 15,670,485 5,016,398 – 7,554,048 3,879 8,669,302 17,095,094 x x 237,288 7,780 22,723 20,605,554 15,062,127 5,543,428 – 7,381,525 2,183 10,657,840 19,704,250 x x 245,152 8,168 23,388 21,359,970 15,479,618 5,880,352 – 7,539,954 87,788 12,071,185 19,153,367 x x 278,702 8,688 23,068 22,914,474 16,766,363 6,148,110 – 6,937,115 32,913 12,956,394 19,004,981 x x 268,921 7,758 3,872 23,318,581 16,180,016 7,138,566 – 10,302,788 49,096 12,412,769 19,396,571 x x 273,282 7,506 3,735 23,941,968 17,184,059 6,757,909 – 7,754,133 6,746 16,275,038 19,505,835 x x 278,274 7,351 3,902 20,086,341 13,230,133 6,856,209 – 9,256,519 21,806 16,525,978 21,034,222 x x 289,470 7,246 3,967 19,668,294 13,087,201 6,581,093 – 11,099,037 6,704 16,735,217 22,463,940 x x 292,700 9,566 90,410 21,247,439 14,095,403 7,152,036 – 11,676,209 93,512 16,167,880 21,433,333 x x 191,584 7,877 28,157 22,253,510 13,604,008 8,649,502 – 11,667,499 1 17,262,507 20,370,323 x x 150,522

11,358 24,704 22,823,339 13,448,575 9,374,764 – 12,679,110 143 20,048,450 22,469,331 x x 161,272 10,041 9,726 22,988,461 13,341,078 9,647,383 – 14,926,301 15,422 18,746,194 21,821,352 x x 166,616 13,307 9,791 24,370,898 14,327,176 10,043,721 – 15,691,773 3,360 18,782,732 21,924,439 x x 25,283 12,331 10,974 25,137,989 14,354,044 10,783,945 – 16,402,829 2,749 17,775,343 22,609,262 x x 14,541 13,036 13,907 25,551,501 14,171,690 11,379,811 – 19,902,498 120,172 18,863,967 21,649,755 x x 16,288 14,770 19,880 26,594,483 14,805,668 11,788,815 – 18,181,199 167,672 18,597,568 23,079,367 x x 20,802 14,370 19,138 28,324,792 15,720,805 12,603,987 – 18,565,263 156,249 20,298,037 24,587,345 x x 29,308 16,369 18,812 30,106,131 16,726,199 13,379,931 – 17,710,515 145,028 20,847,251 25,181,385 x x 41,643 17,993 18,981 31,880,432 17,886,195 13,994,237 – 17,418,768 147,779 21,633,131 27,827,546 x x 54,366 17,447 19,682 34,813,908 19,557,519 15,256,389 – 18,833,014 188,362 24,527,797 27,295,937 x x 2,990

2) Starting December 1994, this item has been included under "Other liabilities - Profit paid and withholdings".

45*



Period





Dec.*1997 Jan.



(continued) - millions of lei; end of period -LIABILITIES FOREIGN LIABILITIES

Total Short-termOther Total Convertible currencies Lei Non-convertible currencies

Total Loans Deposits Deposits deposits Total Loans Liabili- De-from of of other of other from ties on pos-foreign foreign non- non- foreign bilateral its ofbanks banks residents resi- banks pay- for-

dents ments eignagree- banksments

7,039 1,071,178 59,813 59,636 5,387 3,216 1,030 1,142 13 54,237 41,908 12,329 – 109,375 2,289,674 136,787 118,986 27,868 17,880 4,956 5,032 63 91,056 – 91,056 – 270,584 4,002,050 241,402 163,210 159,096 86,131 34,776 38,189 1,737 2,377 – 2,370 7 784,493 9,843,462 714,947 462,383 452,471 263,836 29,433 159,202 4,109 5,803 – 5,096 707

1,152,587 10,912,440 764,596 275,879 265,156 77,955 32,871 154,330 4,426 6,297 – 5,733 565 1,441,247 11,553,447 888,345 317,168 307,213 97,854 48,214 161,145 3,095 6,861 – 6,146 715 1,548,029 12,336,729 941,574 327,380 316,957 132,710 35,442 148,805 3,664 6,758 – 6,185 573 1,834,979 12,830,477 932,447 300,314 289,405 97,637 37,484 154,283 4,246 6,664 – 6,168 496 2,168,000 13,297,346 904,509 308,572 297,440 102,181 36,562 158,698 4,699 6,432 – 5,690 742 2,403,063 14,446,393 931,288 323,134 311,079 69,683 78,841 162,555 5,552 6,504 – 5,562 942 2,727,586 15,645,997 918,370 294,914 282,734 48,374 66,568 167,792 5,683 6,497 – 5,605 892 2,881,245 16,739,849 917,707 305,679 293,659 56,960 69,150 167,548 6,474 5,546 – 5,546 – 2,877,271 17,904,603 939,424 304,080 290,280 27,461 48,775 214,044 7,581 6,220 – 6,220 – 3,008,979 19,213,504 927,351 281,928 267,010 20,888 47,013 199,109 8,766 6,152 – 6,152 – 3,276,459 20,415,518 939,226 277,603 264,359 20,980 51,710 191,670 8,119 5,125 – 5,125 – 3,050,338 20,415,121 1,213,137 497,108 482,061 38,013 248,620 195,428 10,089 4,958 – 4,958 – 2,553,383 20,108,411 1,477,407 702,074 686,446 35,888 241,201 409,357 9,915 5,713 – 5,713 – 2,858,627 21,025,071 1,516,699 706,604 691,651 33,625 241,690 416,336 9,243 5,710 – 5,710 – 2,947,348 22,318,424 1,675,312 796,586 779,962 88,606 229,532 461,823 11,018 5,606 – 5,606 – 3,282,591 23,386,790 1,699,326 799,450 781,303 85,072 249,302 446,929 12,500 5,647 – 5,647 – 3,558,199 24,561,896 1,752,976 821,764 804,014 107,134 258,449 438,431 12,106 5,644 – 5,644 – 3,172,937 25,015,799 1,542,765 619,068 600,439 106,935 270,311 223,193 12,787 5,842 – 5,842 – 3,738,973 26,244,444 1,513,764 563,770 544,568 97,176 258,623 188,769 13,233 5,969 – 5,969 – 3,940,520 27,398,409 1,572,916 612,956 592,906 97,067 260,645 235,194 13,930 6,120 – 6,120 – 4,016,913 28,660,855 1,638,697 647,474 626,766 105,721 300,284 220,761 14,936 5,772 – 5,772 – 4,060,567 30,867,479 1,768,611 617,535 595,189 108,249 323,658 163,281 15,766 6,581 – 6,581 – 4,212,120 33,320,052 2,007,344 745,685 722,341 96,858 340,105 285,378 15,810 7,534 – 7,534 – 4,895,712 32,440,153 2,059,649 570,020 546,330 91,106 278,019 177,205 16,066 7,625 – 7,625 – 4,354,137 32,160,403 2,014,629 521,237 495,907 143,480 123,483 228,944 17,222 8,108 – 8,108 – 5,013,019 34,191,185 2,230,815 584,061 568,436 182,445 137,010 248,982 6,847 8,778 – 8,778 – 5,582,122 36,336,074 2,586,177 882,438 865,245 178,980 433,907 252,359 8,447 8,747 – 8,747 – 5,742,214 36,740,154 2,550,568 868,116 833,867 212,286 382,796 238,785 25,574 8,675 – 8,675 – 6,102,514 37,884,793 2,524,213 844,833 810,762 192,420 382,471 235,871 25,282 8,789 – 8,789 – 6,724,645 38,912,411 2,662,070 903,325 866,946 218,119 409,130 239,698 27,362 9,018 – 9,018 – 7,094,770 41,078,666 2,885,384 995,144 952,800 241,996 440,725 270,079 33,007 9,337 – 9,337 – 7,565,287 42,589,372 2,937,880 975,601 935,882 243,832 426,683 265,367 30,302 9,417 – 9,417 – 7,976,729 44,689,682 2,982,656 988,553 948,044 240,662 441,020 266,362 30,797 9,712 – 9,712 – 8,372,267 50,012,068 3,246,787 1,111,960 1,069,692 264,072 560,849 244,771 32,217 10,051 – 10,051 – 9,127,483 53,390,523 3,581,219 1,275,383 1,232,612 360,449 579,094 293,070 34,055 8,717 – 8,717 –

10,006,751 55,022,654 4,995,406 2,483,921 2,437,554 437,735 1,586,676 413,143 36,574 9,794 – 9,794 – 10,627,319 62,509,661 5,673,960 2,055,328 2,003,551 624,349 940,694 438,507 37,379 14,399 – 14,399 – 11,823,968 71,702,355 7,272,761 2,632,135 2,575,854 809,104 1,242,720 524,030 37,599 18,683 – 18,683 – 13,588,917 71,368,686 7,457,572 2,646,758 2,588,355 870,562 1,122,845 594,948 41,376 17,028 – 17,028 – 15,154,711 74,144,487 7,079,874 2,153,380 2,091,561 1,007,404 567,669 516,487 44,864 16,955 – 16,955 – 16,857,806 78,010,869 7,332,247 2,395,338 2,333,470 951,685 781,058 600,726 44,706 17,163 – 17,163 – 19,459,098 82,811,259 7,147,421 2,408,719 2,341,989 920,215 835,183 586,591 49,777 16,953 – 16,953 – 18,874,665 86,413,550 7,873,735 2,623,208 2,542,367 1,077,768 797,224 667,375 63,117 17,724 – 17,624 100 18,736,060 89,997,697 8,634,686 2,983,276 2,897,737 985,107 1,250,708 661,922 67,533 18,005 – 18,005 – 19,123,289 92,053,435 9,000,841 3,239,863 3,124,300 1,051,506 1,411,153 661,641 97,213 18,350 – 18,350 – 19,227,561 95,581,285 9,567,160 3,260,046 3,070,792 1,106,600 1,108,492 855,701 170,583 18,671 – 18,671 – 20,744,752 96,427,619 9,421,004 3,054,399 2,940,462 1,003,870 1,221,671 714,921 94,999 18,938 – 18,938 – 22,171,240 100,187,879 9,220,733 2,259,249 2,141,126 299,938 1,192,908 648,280 98,767 19,356 – 19,356 – 21,241,748 100,692,245 8,958,029 1,763,662 1,652,039 233,013 1,103,381 315,645 90,987 20,637 – 20,637 – 20,219,801 102,659,472 8,901,875 1,822,509 1,700,016 241,485 1,071,165 387,366 102,214 20,279 – 20,279 – 22,308,059 108,877,627 9,405,200 2,094,554 2,001,407 317,596 1,276,236 407,574 71,905 21,242 – 21,242 – 21,654,735 108,773,578 9,570,814 2,053,875 1,976,940 297,328 1,274,882 404,730 56,055 20,879 – 20,879 – 21,899,155 110,619,510 9,552,795 2,222,222 2,131,585 193,203 1,549,090 389,293 69,342 21,295 – 21,295 – 22,594,720 113,091,136 10,055,372 2,686,482 2,604,811 188,219 1,906,879 509,713 59,978 21,693 – 21,693 – 21,633,467 116,496,968 9,671,807 2,368,339 2,285,384 112,395 1,592,085 580,905 61,077 21,878 – 21,878 – 23,058,565 118,661,189 9,338,473 1,568,389 1,480,042 119,586 816,156 544,300 66,018 22,328 – 22,328 – 24,558,037 125,023,583 10,246,705 2,050,155 1,980,548 290,218 1,018,141 672,188 46,493 23,114 – 23,114 – 25,139,742 128,370,083 10,388,221 1,927,051 1,859,263 176,677 919,128 763,458 43,788 23,999 – 23,999 – 27,773,179 134,507,358 10,975,732 2,194,456 2,127,366 218,985 1,206,767 701,613 41,865 25,225 – 25,225 – 27,292,947 148,004,632 10,213,353 2,133,069 2,060,846 168,367 1,120,845 771,634 44,932 27,290 – 27,290 –


46*



Period





Dec.*1997 Jan.



(continued) - millions of lei; end of period -DOMESTIC LIABILITIES

Medium- and long-term Total Non-bank clients' depositsTotal Convertible Non- Total Demand deposits Household savings

currencies con- Total Companies House- Limited Other 1) Total Demandverti- majority majority hold cheques depositsble state- private depositscur- owned capitalren- capitalcies

177 177 – 1,011,365 420,018 122,831 67,014 17,797 – – 38,020 249,088 55,803 17,801 17,795 6 2,152,887 854,980 518,267 419,878 55,358 – – 43,031 261,799 79,589 78,192 78,192 – 3,760,648 1,444,628 616,782 242,430 165,487 8,410 114,053 86,403 409,212 83,381

252,564 252,541 23 9,128,515 3,423,639 1,182,587 407,583 384,279 43,497 182,866 164,361 645,789 116,731 488,717 488,705 12 10,147,843 3,622,338 972,536 294,442 301,041 57,941 192,763 126,348 670,754 119,540 571,177 571,165 12 10,665,102 3,846,290 1,038,146 370,052 292,043 34,065 200,339 141,648 725,480 120,510 614,195 614,044 151 11,395,155 4,180,378 1,082,516 366,315 291,474 38,002 226,248 160,478 742,090 120,514 632,133 632,133 – 11,898,030 4,286,686 1,082,722 356,170 285,826 63,852 202,670 174,204 836,993 124,352 595,937 595,937 – 12,392,837 4,522,846 1,123,661 369,967 303,904 79,484 230,805 139,501 977,028 132,048 608,154 608,154 – 13,515,105 4,904,575 1,283,945 446,649 349,040 84,795 234,942 168,519 1,196,212 160,499 623,456 623,456 – 14,727,628 5,285,946 1,332,353 440,157 380,412 109,649 227,684 174,451 1,420,300 208,640 612,028 612,028 – 15,822,142 5,784,715 1,535,400 539,818 416,328 145,419 248,319 185,516 1,604,648 236,420 635,344 635,344 – 16,965,179 6,281,060 1,556,359 498,275 453,197 136,585 269,365 198,936 1,774,883 256,155 645,422 645,422 – 18,286,153 6,598,037 1,721,434 524,096 513,426 128,558 315,799 239,555 1,902,621 270,955 661,624 661,624 – 19,476,292 7,066,930 1,870,422 569,083 521,240 185,499 327,029 267,570 2,085,895 287,329 716,029 716,029 – 19,201,984 8,446,915 2,332,445 787,162 831,345 182,932 291,808 239,198 2,727,607 359,327 775,333 775,333 – 18,631,004 8,435,255 1,985,780 660,016 664,971 182,232 278,887 199,675 2,976,277 315,777 810,095 810,095 – 19,508,372 8,511,652 1,792,865 585,140 564,861 179,258 276,084 187,522 3,101,727 310,777 878,727 878,727 – 20,643,112 9,170,708 2,048,216 672,232 661,812 195,254 323,725 195,192 3,278,389 336,758 899,876 899,876 – 21,687,463 9,144,725 1,881,818 610,463 669,985 202,032 188,361 210,977 3,385,707 356,800 931,211 931,211 – 22,808,921 9,777,714 2,094,557 707,763 808,869 210,020 141,428 226,477 3,556,480 351,308 923,697 923,697 – 23,473,035 10,251,435 2,137,045 717,125 818,794 229,842 131,585 239,698 3,738,811 366,087 949,994 949,994 – 24,730,680 10,638,007 2,276,381 761,700 903,498 231,721 141,503 237,959 3,932,181 395,229 959,959 959,959 – 25,825,493 11,227,468 2,401,600 789,351 971,855 240,186 146,419 253,789 4,114,464 396,244 991,224 991,224 – 27,022,158 11,535,341 2,429,411 766,588 963,470 233,033 152,558 313,763 4,230,075 401,435

1,151,076 1,151,076 – 29,098,868 12,231,296 2,741,060 891,434 1,094,064 270,201 185,455 299,906 4,334,887 426,019 1,261,659 1,261,659 – 31,312,708 13,249,960 2,892,203 966,518 1,179,924 257,208 194,234 294,320 4,443,150 424,523 1,489,629 1,489,629 – 30,380,504 14,514,925 3,320,017 1,108,090 1,466,629 280,209 166,745 298,344 5,136,421 495,922 1,493,392 1,493,392 – 30,145,774 14,850,667 3,153,768 1,214,713 1,234,017 203,064 168,424 333,551 5,544,061 507,992 1,646,754 1,646,754 – 31,960,370 15,627,715 3,099,331 1,170,231 1,184,827 244,123 176,294 323,857 5,844,529 500,632 1,703,739 1,703,739 – 33,749,897 16,062,800 3,119,237 995,116 1,285,987 289,194 216,016 332,925 6,042,434 489,225 1,682,452 1,682,452 – 34,189,587 16,308,262 3,251,017 1,007,685 1,330,053 332,093 244,870 336,316 6,436,563 502,748 1,679,379 1,679,379 – 35,360,581 17,106,453 3,540,860 1,138,989 1,460,950 365,620 248,454 326,847 6,670,162 551,261 1,758,744 1,758,744 – 36,250,341 17,471,392 3,414,041 971,822 1,500,077 398,710 196,235 347,197 6,920,967 575,661 1,890,240 1,890,240 – 38,193,283 18,640,035 3,902,530 1,257,097 1,659,408 413,945 211,409 360,672 7,129,557 613,819 1,962,279 1,962,279 – 39,651,492 19,126,154 3,969,041 1,301,103 1,744,185 422,423 185,689 315,642 7,289,411 627,009 1,994,103 1,994,103 – 41,707,026 19,842,199 4,235,143 1,497,482 1,754,580 428,720 207,202 347,159 7,431,024 628,676 2,134,827 2,134,827 – 46,765,281 21,402,185 4,990,307 1,864,693 2,065,197 465,657 243,105 351,655 7,620,517 653,391 2,305,835 2,305,835 – 49,809,305 22,824,806 5,304,973 1,938,541 2,281,745 475,919 235,581 373,188 7,868,217 686,531 2,511,485 2,511,485 – 50,027,248 24,933,269 5,772,013 2,095,521 2,562,666 504,373 203,523 405,930 8,808,111 789,248 3,618,632 3,618,632 – 56,835,701 29,139,482 5,241,058 2,065,124 2,252,652 291,260 227,866 404,157 9,367,681 750,160 4,640,626 4,640,626 – 64,429,594 33,438,498 4,535,092 1,715,195 1,683,243 370,700 221,306 544,647 10,016,699 819,222 4,810,813 4,810,813 – 63,911,114 33,124,461 4,207,110 1,402,952 1,686,430 523,398 206,759 387,572 10,981,330 758,019 4,926,494 4,926,494 – 67,064,613 34,332,357 4,681,173 1,574,118 1,760,384 657,823 187,976 500,872 12,052,003 646,975 4,936,909 4,936,909 – 70,678,622 36,219,721 5,129,726 1,551,626 2,007,514 762,331 222,665 585,591 13,490,621 650,171 4,738,701 4,738,701 – 75,663,838 37,594,088 5,491,312 1,444,355 2,344,101 794,734 234,371 673,752 14,565,615 681,009 5,250,527 5,250,527 – 78,539,815 41,067,410 6,050,339 1,621,094 2,897,105 774,599 256,112 501,429 15,404,812 778,978 5,651,411 5,651,411 – 81,363,010 41,970,132 6,039,904 1,545,302 2,926,273 761,143 270,766 536,421 15,765,796 820,246 5,760,978 5,760,978 – 83,052,593 43,167,613 6,403,843 1,718,370 3,138,767 664,347 300,875 581,484 16,286,767 1,139,504 6,307,114 6,307,114 – 86,014,125 44,735,842 6,716,852 1,860,674 3,187,325 699,336 304,794 664,723 16,934,111 1,291,322 6,366,605 6,366,605 – 87,006,615 47,500,924 6,674,417 1,638,457 3,241,256 701,344 297,519 795,841 17,701,359 1,378,207 6,961,484 6,961,484 – 90,967,146 52,950,348 9,531,063 2,946,885 5,057,163 692,898 44,343 789,774 20,165,532 1,599,451 7,194,367 7,194,367 – 91,734,216 51,756,411 6,647,210 2,004,666 3,264,536 593,203 42,240 742,565 20,793,328 1,546,034 7,079,366 7,079,366 – 93,757,597 53,191,324 6,973,445 2,193,750 3,464,360 562,412 44,843 708,079 21,890,920 1,630,754 7,310,646 7,310,646 – 99,472,427 55,611,453 7,167,998 2,134,420 3,424,852 617,288 44,509 946,929 22,426,467 1,559,589 7,516,939 7,516,939 – 99,202,764 55,779,067 6,559,620 1,806,186 3,339,038 624,445 42,640 747,311 23,380,383 1,513,069 7,330,573 7,330,573 – 101,066,714 57,342,861 6,600,403 1,637,342 3,536,979 658,227 42,656 725,198 24,429,084 1,472,212 7,368,890 7,368,890 – 103,035,764 59,178,289 7,011,386 1,527,830 4,021,885 669,926 48,035 743,709 25,153,244 1,456,226 7,303,467 7,303,467 – 106,825,161 60,561,487 6,978,188 1,469,907 4,034,232 684,727 46,642 742,681 25,797,088 1,441,055 7,770,085 7,770,085 – 109,322,715 62,031,916 7,139,984 1,500,377 4,035,918 706,870 49,255 847,564 26,367,503 1,427,729 8,196,550 8,196,550 – 114,776,877 63,837,726 7,407,426 1,747,008 4,172,346 654,491 54,782 778,799 26,626,706 1,418,729 8,461,171 8,461,171 – 117,981,862 65,387,766 7,009,123 1,463,524 3,873,523 831,170 53,997 786,909 27,306,063 1,436,787 8,781,276 8,781,276 – 123,531,626 68,097,652 7,660,754 1,742,486 4,104,176 917,050 46,943 850,098 28,227,340 1,381,191 8,080,284 8,080,284 – 137,791,279 81,004,864 10,584,719 2,700,060 6,078,150 769,371 42,702 994,436 30,966,689 1,403,418

1) Insurance companies included.

47*



Period





Dec.*1997 Jan.




Lei deposits Convertible currency depositsTime Total Time Restricted Certi- Total Demand deposits Time dep.

ficates of Total Companies House- Other 1) Totaldeposit majority majority hold

state- private depositsowned capitalcapital

193,285 32,989 444 32,545 – 15,110 14,671 13,869 – 802 – 440 182,210 34,489 6,078 28,411 – 40,410 36,672 21,099 1,895 13,678 – 3,738 325,831 86,459 40,940 43,182 2,337 332,175 286,552 163,944 68,885 53,607 116 45,623 529,058 298,825 173,617 111,557 13,651 1,296,438 1,054,960 489,098 318,545 213,300 34,017 208,351 551,214 463,839 163,719 283,431 16,689 1,515,208 1,245,305 579,819 370,819 251,906 42,761 229,535 604,970 470,942 160,170 287,484 23,289 1,611,722 1,327,575 585,325 409,492 283,650 49,109 246,722 621,576 581,239 230,309 320,646 30,284 1,774,533 1,444,350 615,155 466,461 315,621 47,113 297,231 712,641 564,034 216,130 311,206 36,698 1,802,937 1,483,683 648,224 462,913 319,633 52,913 285,860 844,979 643,268 280,526 305,663 57,079 1,778,889 1,428,422 607,390 444,328 323,089 53,615 311,278

1,035,713 657,576 256,933 334,230 66,413 1,766,842 1,407,321 603,641 418,951 327,744 56,984 316,152 1,211,660 679,875 299,391 301,669 78,815 1,853,418 1,460,678 625,032 440,454 338,551 56,642 323,884 1,368,228 738,678 336,595 308,319 93,764 1,905,989 1,497,494 674,182 416,823 346,905 59,585 342,505 1,518,728 874,173 422,327 345,835 106,011 2,075,645 1,627,395 705,532 495,117 365,335 61,410 361,774 1,631,667 896,602 393,629 386,327 116,646 2,077,380 1,624,020 690,875 515,662 359,518 57,964 367,139 1,798,566 939,887 404,191 409,350 126,346 2,170,726 1,716,303 608,617 605,896 359,938 141,852 370,551 2,368,280 1,028,740 489,309 408,498 130,933 2,358,123 1,621,881 482,664 634,020 375,747 129,450 466,671 2,660,500 1,107,021 594,457 357,777 154,787 2,366,177 1,620,508 512,738 598,663 383,798 125,309 473,586 2,790,950 1,182,434 619,936 388,735 173,763 2,434,626 1,644,655 507,656 608,901 402,185 125,913 492,019 2,941,631 1,298,223 616,294 476,272 205,657 2,545,880 1,718,644 561,031 581,754 427,781 148,078 543,172 3,028,907 1,315,602 598,993 495,379 221,230 2,561,599 1,721,765 554,320 554,616 443,332 169,497 547,179 3,205,172 1,424,598 649,286 507,550 267,762 2,702,079 1,825,925 594,465 562,513 461,481 207,465 594,083 3,372,724 1,457,173 723,620 456,902 276,651 2,918,406 2,004,346 611,960 734,056 451,522 206,809 593,553 3,536,951 1,485,642 741,246 450,582 293,814 2,943,803 1,932,898 639,818 611,340 473,159 208,581 725,162 3,718,221 1,678,261 883,963 476,060 318,238 3,033,144 2,093,110 749,729 649,787 483,053 210,541 643,988 3,828,639 1,698,844 880,065 487,910 330,870 3,177,012 2,192,179 753,457 669,812 503,989 264,922 655,302 3,908,868 1,809,448 918,132 530,488 360,829 3,345,901 2,307,822 772,423 729,426 535,137 270,836 676,787 4,018,627 1,933,563 961,815 573,404 398,344 3,981,045 2,671,894 937,538 819,410 635,464 279,482 837,145 4,640,499 1,926,456 944,203 589,556 392,696 4,132,032 2,760,422 913,623 927,357 665,945 253,497 866,397 5,036,069 2,093,440 1,166,679 474,004 452,758 4,059,399 2,787,891 905,242 914,169 696,458 272,022 890,530 5,343,897 2,080,038 1,124,146 493,949 461,943 4,603,817 3,166,693 969,057 1,090,329 804,507 302,800 1,006,189 5,553,208 2,154,064 1,158,935 526,568 468,562 4,747,066 3,249,097 1,037,034 1,047,573 854,165 310,325 1,085,430 5,933,815 2,087,262 1,069,915 544,306 473,041 4,533,420 3,148,386 957,296 1,047,938 804,462 338,691 962,459 6,118,901 2,166,329 1,111,307 559,904 495,118 4,729,103 3,212,287 923,208 1,124,303 827,539 337,237 1,062,760 6,345,307 2,278,067 1,236,243 533,149 508,675 4,858,316 3,223,708 876,276 1,137,577 866,320 343,534 1,199,888 6,515,738 2,462,448 1,402,305 542,259 517,884 5,145,500 3,465,103 984,602 1,170,125 912,974 397,402 1,201,222 6,662,402 2,678,005 1,558,048 584,204 535,754 5,189,697 3,501,153 977,250 1,224,302 929,447 370,155 1,216,070 6,802,349 2,746,712 1,631,133 554,030 561,549 5,429,319 3,542,065 902,462 1,340,214 928,944 370,445 1,411,958 6,967,126 3,040,680 1,802,040 629,412 609,229 5,750,680 3,623,030 968,309 1,289,479 950,872 414,370 1,594,044 7,181,686 3,179,151 1,767,337 760,008 651,805 6,472,465 4,236,876 1,143,005 1,460,076 1,010,608 623,187 1,681,555 8,018,864 3,267,516 1,893,442 658,134 715,939 7,085,630 4,528,818 1,233,981 1,644,945 1,171,290 478,602 1,959,248 8,617,521 3,688,956 2,173,640 770,757 744,558 10,841,786 6,947,866 1,933,184 2,575,954 1,733,221 705,507 3,050,605 9,197,476 3,831,842 2,310,336 832,452 689,054 15,054,866 9,456,978 2,869,274 3,400,199 2,174,994 1,012,512 4,360,479

10,223,311 4,104,354 2,602,537 744,456 757,361 13,831,666 8,444,838 2,419,462 2,986,794 1,944,993 1,093,588 4,092,248 11,405,028 3,665,888 2,563,799 209,542 892,548 13,933,292 7,750,445 1,902,455 2,732,135 1,910,857 1,204,999 4,065,292 12,840,450 4,353,718 2,964,180 264,555 1,124,983 13,245,656 7,151,019 1,599,705 2,647,713 1,915,849 987,752 4,220,078 13,884,606 4,462,452 2,922,532 315,147 1,224,773 13,074,708 7,719,711 1,625,224 3,165,424 1,917,363 1,011,701 3,713,384 14,625,834 5,515,691 3,819,056 351,164 1,345,470 14,096,568 8,444,075 1,703,854 3,707,783 1,966,240 1,066,198 3,956,857 14,945,550 5,365,082 3,661,541 330,732 1,372,808 14,799,350 8,849,241 2,153,275 3,586,531 2,031,904 1,077,530 4,399,031 15,147,263 5,111,264 3,347,522 357,362 1,406,380 15,365,740 8,960,414 1,907,590 3,866,697 2,076,837 1,109,291 4,593,207 15,642,789 5,195,046 3,423,330 380,606 1,391,109 15,889,832 8,613,817 2,052,067 3,425,468 2,110,508 1,025,775 5,220,655 16,323,153 5,446,063 3,539,947 507,778 1,398,339 17,679,085 9,189,025 2,082,438 3,947,235 2,140,786 1,018,566 6,231,519 18,566,081 5,567,479 3,659,105 387,814 1,520,560 17,686,275 9,442,388 2,369,887 3,715,164 2,277,233 1,080,103 6,114,537 19,247,294 6,266,791 4,093,073 630,299 1,543,420 18,049,016 9,084,843 2,003,914 3,685,860 2,443,477 951,592 6,746,585 20,260,166 6,366,832 3,945,287 610,793 1,810,752 17,960,127 8,919,522 2,112,258 3,456,123 2,376,809 974,331 6,942,974 20,866,878 6,571,313 3,857,548 663,768 2,049,997 19,445,675 9,533,219 2,305,759 3,587,169 2,491,665 1,148,626 7,871,908 21,867,314 6,965,587 4,067,611 633,953 2,264,024 18,873,476 8,418,942 1,580,733 3,336,082 2,454,830 1,047,297 8,520,297 22,956,872 6,887,641 3,823,985 673,474 2,390,181 19,425,733 8,629,477 1,603,790 3,421,335 2,546,907 1,057,445 8,861,822 23,697,017 6,925,643 3,924,167 692,295 2,309,181 20,088,017 9,055,328 1,676,938 3,661,316 2,601,931 1,115,143 9,036,811 24,356,034 7,105,746 4,110,232 710,318 2,285,196 20,680,465 9,295,231 1,647,755 3,734,451 2,633,102 1,279,923 9,358,719 24,939,774 7,149,243 4,207,352 762,494 2,179,397 21,375,187 9,917,636 2,003,467 3,924,782 2,705,420 1,283,966 9,249,752 25,207,978 7,861,379 4,587,306 1,048,957 2,225,116 21,942,215 10,200,434 2,066,641 3,989,555 2,833,246 1,310,991 9,518,556 25,869,275 8,375,586 4,757,391 1,127,859 2,490,336 22,696,994 10,260,672 1,835,588 4,637,592 2,929,517 857,976 9,907,608 26,846,150 8,749,819 5,122,282 1,223,082 2,404,455 23,459,739 10,496,158 2,066,083 4,219,835 3,032,340 1,177,900 10,634,934 29,563,271 9,251,991 5,501,727 1,380,085 2,370,179 30,201,465 11,817,169 2,353,706 4,671,113 3,387,059 1,405,291 15,647,624


48*



Period





Dec.*1997 Jan.




In Interbank Public depositsNon- transit liabilities Total Deposits Gov't Local Health

Restricted conver- accounts from budget budgets fundCompanies House- Other 1) 2) tible payable MLT deposits ** **majority majority hold curren- to depos- financing forstate- private deposits cy itors invest-owned capital depos- mentcapital its **

– – 440 – – – 2,827 459,056 77,261 – 97 5 – 192 1,623 1,923 – – 15 235,054 677,752 125,223 – 65 4,351 –

24,779 9,386 11,444 15 – – 154,921 989,596 357,609 82,341 – 432 80 113,782 45,848 47,388 1,333 33,127 – 157,288 2,777,411 885,413 88,943 – 13,235 9,144 130,906 42,587 54,533 1,509 40,369 – 193,714 2,970,414 1,031,642 90,443 151,387 22,262 10,975 136,875 45,717 61,766 2,365 37,425 – 195,323 3,161,266 918,750 88,443 52,680 26,274 6,722 171,849 55,769 65,984 3,628 32,952 – 240,864 3,335,948 934,797 92,908 21,517 31,622 6,744 170,256 44,542 69,896 1,167 33,394 – 193,126 3,635,528 987,189 93,034 32,102 39,093 8,158 193,731 46,168 70,333 1,046 39,189 – 189,703 3,791,653 836,213 93,034 33,324 35,153 4,457 191,188 42,480 81,385 1,100 43,369 – 254,363 3,964,313 1,065,136 92,634 80,873 32,145 16,984 190,751 46,832 85,202 1,099 68,856 – 200,411 4,426,170 1,139,882 92,862 61,224 34,726 17,364 201,705 50,290 89,344 1,167 65,990 – 187,669 4,608,963 1,275,174 91,362 89,429 37,025 19,910 214,879 51,184 95,225 487 86,476 – 232,471 4,677,742 1,418,870 91,339 100,203 32,990 23,003 214,374 54,825 97,734 206 86,221 – 217,909 5,223,203 1,376,056 81,750 102,532 35,465 22,940 193,038 77,007 100,401 106 83,871 – 224,367 5,594,465 1,406,621 72,866 80,085 46,346 4,377 174,937 114,823 71,629 105,281 269,571 – 193,051 4,502,490 1,302,936 60,307 – 24,286 20,502 174,053 117,656 73,364 108,513 272,084 – 232,287 4,362,399 1,355,056 56,503 26,013 39,677 5,669 163,990 126,622 74,386 127,021 297,952 – 211,949 4,604,799 1,477,648 56,766 40,995 55,329 5,149 168,036 153,953 86,553 134,630 284,064 – 212,213 5,110,734 1,477,655 56,699 42,180 75,790 5,579 163,566 150,177 93,193 140,243 292,655 – 260,173 5,614,234 1,493,993 54,981 66,613 89,153 5,629 171,393 167,980 104,884 149,825 282,072 – 242,636 5,901,397 1,515,010 63,494 99,712 100,421 14,846 158,311 166,122 111,964 157,155 320,507 – 248,033 6,376,080 1,475,853 54,993 83,347 76,165 17,040 163,465 262,336 125,929 173,431 285,744 – 242,600 6,912,438 1,384,730 52,222 77,120 61,742 14,909 161,115 173,162 138,901 170,810 296,045 – 250,167 7,241,777 1,429,190 51,032 99,825 65,470 11,743 163,004 140,107 163,836 188,355 329,531 – 245,348 7,833,277 1,654,375 51,025 86,380 89,255 19,183 171,309 125,892 176,658 202,928 361,293 – 269,950 8,769,134 1,795,125 46,635 109,448 62,302 15,641 151,669 208,659 244,830 231,988 472,005 – 269,158 9,569,567 1,652,732 36,608 79,256 57,533 7,594 180,547 194,889 262,192 228,769 505,213 – 296,343 7,187,794 1,813,950 36,526 – 45,028 19,542 166,437 210,281 307,274 206,538 380,977 – 244,885 6,991,810 1,863,045 36,170 38,292 58,006 30,664 156,134 243,146 361,593 245,316 430,936 – 249,813 7,104,499 1,980,274 36,163 53,793 62,372 35,362 155,737 270,795 389,087 269,811 412,538 – 391,175 7,314,930 2,223,407 29,502 48,829 70,709 30,500 109,341 253,472 408,236 191,410 422,575 – 415,585 7,240,662 2,233,184 29,482 49,613 77,937 24,601 121,507 339,194 419,462 182,598 454,055 – 329,947 7,475,001 2,482,863 29,475 60,901 88,571 15,099 104,424 384,475 486,367 224,622 434,720 – 355,888 7,341,872 2,295,755 29,455 72,812 89,635 15,331 108,336 352,040 502,069 238,777 479,175 – 351,619 7,799,936 2,523,225 29,455 103,710 78,622 14,424 119,851 292,307 531,308 272,604 472,474 – 270,886 8,391,798 2,553,706 28,040 116,597 98,431 20,573 111,486 455,910 555,421 289,141 475,297 – 400,606 8,771,648 2,829,003 27,730 179,993 108,962 24,310 149,956 533,620 600,398 310,070 533,606 – 559,201 11,448,992 2,824,481 27,390 116,266 98,227 26,966 170,835 524,128 602,717 383,874 554,034 – 429,657 12,254,433 2,781,513 18,296 148,691 84,273 19,702 163,023 644,920 713,579 437,725 597,564 – 567,063 11,342,050 1,135,276 17,556 x x x 305,895 1,015,665 1,079,025 650,019 843,315 – 807,861 10,826,613 1,360,052 15,197 x x x 237,502 1,697,357 1,527,608 898,013 1,237,408 – 616,808 10,564,146 1,736,285 184,925 x x x 271,790 1,539,947 1,459,545 820,966 1,294,580 – 435,525 10,541,418 1,631,655 176,528 x x x 432,088 1,376,658 1,507,343 749,203 2,117,555 – 527,823 11,268,440 2,041,794 183,992 x x x 531,868 1,369,623 1,557,504 761,083 1,874,558 – 667,862 10,968,125 1,923,240 183,988 x x x 390,649 974,058 2,047,964 300,713 1,641,613 – 725,546 11,303,454 3,009,787 181,095 x x x 309,303 1,136,502 2,253,900 257,152 1,695,636 – 782,825 10,970,985 2,561,459 186,761 x x x 350,435 1,293,822 2,470,721 284,053 1,551,078 – 764,424 11,799,392 3,644,214 190,398 x x x 360,112 1,232,469 2,694,181 306,446 1,812,119 – 910,358 9,967,917 5,079,984 193,287 x x x 414,198 1,443,057 3,063,520 299,880 2,055,361 – 1,057,758 10,868,949 2,990,068 190,885 x x x 583,429 1,922,213 3,400,965 324,912 2,258,540 – 856,499 8,699,450 2,036,112 193,009 x x x 609,948 1,502,147 3,735,266 267,176 2,129,349 – 102,950 8,751,521 2,169,066 181,998 x x x 740,643 1,632,856 3,265,765 1,107,321 2,217,588 67 839,775 8,189,013 2,718,424 187,598 x x x 898,948 1,433,320 4,091,192 519,514 2,097,630 – 843,958 9,461,489 1,633,865 227,501 x x x 917,020 2,361,667 4,063,768 529,452 2,040,548 – 1,469,787 10,242,378 1,860,038 214,601 x x x

1,221,315 2,780,624 4,121,573 396,785 1,934,238 – 1,008,977 9,867,227 1,453,863 230,410 x x x 1,001,503 3,085,828 4,302,331 472,159 1,934,435 – 883,387 9,028,820 1,799,506 250,753 x x x 1,186,281 2,839,913 4,524,213 486,404 1,995,879 – 933,388 9,041,107 1,786,434 252,875 x x x 1,087,074 3,025,296 4,767,288 479,061 2,026,514 – 848,113 10,760,837 1,765,247 249,202 x x x 1,240,910 2,366,320 4,988,971 653,552 2,207,799 – 1,023,340 10,705,665 1,652,658 244,284 x x x 1,390,988 2,246,526 5,387,168 493,874 2,223,225 – 1,141,613 12,468,757 1,643,538 252,264 x x x 1,206,941 2,402,788 5,839,940 457,938 2,528,713 – 987,670 13,208,862 1,694,926 259,040 x x x

777,125 2,883,823 6,424,627 549,360 2,328,647 – 961,419 13,031,372 2,071,207 257,117 x x x 4,463,681 3,150,190 7,507,959 525,794 2,736,672 – 139,754 14,761,261 5,749,226 275,268 x x x 1) Insurance companies included; 2) Certificates of deposit included.**) Starting December 1996, this item has been included in General Account of State Treasury.

49*



Period





Dec.*1997 Jan.




Capital accounts (own funds)Restruc- of state- Special & Social Research Unem- Deposits State Supple- Total Own capitalturing owned se other security fund ploy- from Trea- mentary Total Statutory capitalfund financing extra- budget ** ment State sury pension Total of** institutionsbud- ** benefit Treasury deposits fund which:

instituti- getary fund assets ** con-ons fund accounts vertible** curren-

cies

– 3,915 8,219 71 – 4,602 x – 60,351 26,551 26,551 18,450 3,747 5,274 4,503 28,885 16,892 1,621 1 x – 63,633 69,533 62,481 46,410 5,125 3,008 10,020 68,179 70,057 3,008 1 x – 120,482 259,154 201,955 144,396 8,766

695 14,741 363,387 176,813 9,381 – x – 209,075 567,687 456,829 315,540 4,876 808 13,189 356,361 164,560 3,241 – x 3,390 215,029 571,847 422,256 220,685 4,876 577 14,454 374,081 134,178 8,104 – x 2,642 210,598 596,191 475,743 302,021 4,876 573 16,289 529,697 – 7,248 – x 4,076 224,122 719,413 578,283 395,295 4,876 927 19,342 550,433 – 9,515 – x 2,772 231,813 707,354 578,394 399,052 4,876 903 23,629 389,356 – 14,020 – x 3,266 239,071 714,647 584,130 391,234 4,876 798 30,229 409,734 125,288 19,213 – x 3,196 254,042 763,907 622,391 418,055 4,876 798 36,843 438,419 159,527 26,829 – x 3,231 268,060 770,827 628,285 424,593 4,876 798 35,573 562,758 119,944 27,634 – x 4,880 285,861 791,830 640,449 424,610 4,876 798 29,202 679,372 136,001 21,736 – x 7,122 297,105 850,511 701,683 478,401 4,876 798 30,001 608,449 148,789 37,500 – x 5,456 302,376 828,417 677,529 482,706 4,876 798 31,556 623,803 181,328 52,358 – x 5,880 307,225 847,900 694,614 487,334 4,876 569 35,700 574,109 232,723 43,665 – x – 311,075 1,337,926 1,177,252 520,797 – 569 21,705 634,749 231,991 27,279 – x – 310,902 1,407,850 1,241,921 528,757 – 569 22,429 742,694 226,431 12,924 – x – 314,363 1,427,898 1,257,342 529,778 – 666 24,091 556,744 276,042 11,286 100,000 x – 328,578 1,544,324 1,315,456 510,886 – 654 25,039 550,491 212,751 17,302 100,000 x – 371,382 1,541,864 1,310,322 524,127 – 576 29,162 499,740 228,225 22,052 100,000 x – 356,782 1,661,633 1,416,399 583,749 – 576 28,675 534,564 247,442 29,796 100,000 x – 303,254 1,790,379 1,488,707 618,221 – 576 30,863 611,324 244,377 36,277 100,000 x – 155,319 1,891,058 1,543,263 647,409 – 576 31,978 672,505 246,182 40,465 100,075 x – 109,340 1,987,274 1,636,183 628,738 – 576 30,642 876,580 261,577 43,925 100,077 x – 95,155 2,182,675 1,827,692 636,915 – 576 30,551 981,318 314,433 35,709 100,066 x – 98,446 2,275,636 1,903,440 648,611 – 576 30,473 909,964 328,916 32,725 100,071 x – 69,016 2,458,171 2,056,345 661,210 – 576 35,182 1,178,219 362,588 – 100,014 x – 36,275 3,903,425 2,741,837 661,895 – 576 33,189 1,180,973 381,722 21 100,068 x – 3,364 3,453,760 2,466,502 622,857 – 576 35,639 1,263,240 391,321 19 98,295 x – 3,494 3,799,124 2,693,606 606,550 – 576 35,903 1,508,427 401,689 – 94,444 x – 2,828 3,815,092 2,670,773 589,540 – 994 38,078 1,508,167 413,992 10 89,116 x – 1,194 3,484,658 2,148,145 580,151 – 994 39,835 1,725,444 438,401 10 82,761 x – 1,372 3,084,518 2,104,448 571,872 – 847 42,926 1,524,125 438,244 7,101 74,403 x – 876 3,448,795 2,440,724 592,454 – 845 45,172 1,741,635 444,195 – 64,302 x – 865 3,652,960 2,683,922 618,396 – 845 47,887 1,732,640 451,656 18 55,758 x – 1,261 4,021,327 3,047,265 614,999 – 845 55,781 1,912,587 463,981 5,093 47,958 x – 1,763 3,132,284 2,145,362 620,188 – 845 51,235 1,989,911 472,424 7 39,830 x – 1,380 3,865,024 2,885,273 847,981 – 845 59,126 1,930,181 484,965 – 33,740 x – 1,693 4,304,941 3,331,688 837,439 –

x x 1,089,308 x x 28,079 – x 333 5,159,380 4,092,161 1,012,452 – x x 1,171,436 x x 23,075 150,000 x 344 6,996,585 5,353,577 1,096,271 – x x 1,150,510 x x 20,524 380,000 x 326 6,362,684 4,858,885 1,106,020 – x x 1,436,729 x x 18,067 – x 331 6,379,892 5,018,942 1,129,414 – x x 1,741,164 x x 16,344 100,000 x 294 6,581,698 5,103,130 1,132,238 – x x 1,724,096 x x 14,839 – x 317 5,344,594 3,822,206 1,132,586 – x x 2,164,620 x x 13,760 650,000 x 312 6,391,285 4,830,722 1,233,131 – x x 2,155,921 x x 12,288 206,141 x 348 6,571,291 4,930,643 1,287,383 – x x 2,520,583 x x 40,566 892,322 x 345 6,899,305 5,203,278 1,394,607 – x x 2,761,543 x x 39,796 2,085,022 x 337 6,310,143 4,573,841 1,441,281 – x x 2,087,561 x x 39,743 671,522 x 357 6,558,824 4,844,171 1,476,292 – x x 1,648,345 x x 138,060 56,322 x 377 8,011,153 6,091,926 1,531,909 – x x 1,918,695 x x 67,995 – x 378 8,589,975 6,832,377 1,564,959 – x x 1,398,908 x x 56,521 1,075,000 x 397 8,237,810 6,271,861 1,646,946 – x x 1,350,403 x x 55,587 – x 374 7,743,115 5,578,629 1,740,886 – x x 1,590,501 x x 54,534 – x 402 9,466,278 7,636,282 1,836,136 – x x 1,169,258 x x 53,337 – x 858 10,087,753 8,201,668 1,836,669 – x x 1,496,604 x x 51,261 – x 887 7,404,256 5,562,421 1,879,301 – x x 1,483,750 x x 48,893 – x 916 8,111,417 6,295,269 1,924,537 – x x 1,388,637 x x 126,464 – x 944 8,494,603 6,670,424 1,967,159 – x x 1,283,602 x x 123,598 – x 1,174 9,296,156 7,743,170 2,407,372 – x x 1,269,934 x x 121,340 – x – 9,259,019 7,773,819 3,724,322 – x x 1,318,751 x x 117,136 – x – 8,565,489 7,040,297 4,228,003 – x x 1,699,408 x x 114,682 – x – 10,585,035 9,045,190 4,471,268 – x x 5,372,619 x x 101,340 – x – 11,264,278 9,484,187 5,126,089 –


50*



Period





Dec.*1997 Jan.




Other liabilitiesSupplementary capital Total Profit Profit paid Net fav- Other

Reserve Net profit Other Shares Total Risk Other and with- ourablefund 4) funds (stocks) fund own holdings differen-

1) funds 3) ces from2) foreign

assets &liabilitiesrevaluation

8,100 x x – – – x 25,653 10,299 x 294 15,060 16,007 x x 64 7,052 7,052 x 190,345 26,543 x 25,261 138,542 55,054 x x 2,505 57,198 57,198 x 554,740 162,556 x 2,481 389,703

136,015 x x 5,273 110,859 110,859 x 1,317,076 352,304 x 41,464 923,309 196,298 x x 5,273 149,592 149,592 x 1,757,888 276,447 x 46,715 1,434,726 168,450 x x 5,273 120,447 120,447 x 1,947,283 219,046 x 36,047 1,692,190 177,716 x x 5,273 141,130 141,130 x 1,983,755 21,049 x 37,867 1,924,839 174,069 x x 5,273 128,960 128,960 x 2,088,148 –66,096 x 49,895 2,104,350 187,623 x x 5,273 130,517 130,517 x 2,337,775 –61,834 x 38,525 2,361,085 199,064 x x 5,273 141,515 141,515 x 2,562,812 –75,668 x 54,272 2,584,208 198,419 x x 5,273 142,542 142,542 x 2,904,392 –9,056 x 60,157 2,853,291 210,565 x x 5,273 151,381 151,381 x 3,173,791 54,020 x 42,236 3,077,536 218,010 x x 5,273 148,828 148,828 x 3,504,526 189,922 x 45,615 3,268,989 189,550 x x 5,273 150,888 150,888 x 4,042,530 322,500 x 57,910 3,662,121 202,007 x x 5,273 153,286 153,286 x 4,336,008 423,944 x 54,200 3,857,864 253,298 x 403,157 x 160,674 160,674 x 3,418,666 754,105 –498,156 43,191 3,119,527 293,049 x 420,114 x 165,929 165,929 x 2,838,156 314,392 –151,919 72,220 2,603,462 298,940 x 428,624 x 170,556 170,556 x 3,274,426 538,457 –332,350 116,558 2,951,762 313,736 x 490,835 x 228,868 228,868 x 3,127,478 304,080 –277,049 52,554 3,047,894 331,350 x 454,844 x 231,542 231,542 x 3,632,475 224,034 –153,915 182,306 3,380,051 339,183 x 493,466 x 245,235 245,235 x 3,710,530 221,853 –150,814 58,520 3,580,971 340,706 x 529,780 x 301,671 301,671 x 3,331,256 977,709 –390,961 71,501 2,673,007 362,781 x 533,073 x 347,796 347,796 x 3,661,847 1,021,658 –487,117 82,652 3,044,654 374,180 x 633,265 x 351,091 351,091 x 3,689,616 1,176,850 –496,729 65,651 2,943,844 372,718 x 818,059 x 354,983 354,983 x 3,571,142 1,250,082 –520,851 84,846 2,757,064 383,219 x 871,610 x 372,197 372,197 x 3,757,727 1,388,103 –587,070 107,882 2,848,812 393,918 x 1,001,217 x 401,826 401,826 x 4,113,120 1,502,418 –664,821 166,762 3,108,761 408,420 1,134,551 536,971 x 1,161,589 404,535 757,054 2,664,067 x x 159,304 2,504,763 437,389 569,242 837,013 x 987,258 368,908 618,350 2,741,607 x x 134,929 2,606,678 450,169 748,112 888,776 x 1,105,518 396,657 708,861 3,198,945 x x 149,285 3,049,660 487,336 712,391 881,505 x 1,144,319 413,150 731,169 3,942,494 x x 477,480 3,465,013 580,388 79,801 907,805 x 1,336,513 474,687 861,826 4,507,236 x x 68,078 4,439,157 605,106 –391,341 1,318,812 x 980,070 484,668 495,402 4,881,799 x x 58,070 4,823,729 647,363 –154,089 1,354,996 x 1,008,071 499,951 508,120 5,336,639 x x 49,985 5,286,654 647,535 20,924 1,397,067 x 969,039 456,227 512,812 5,225,508 x x 63,607 5,161,901 664,011 296,452 1,471,804 x 974,062 460,419 513,643 5,287,620 x x 66,973 5,220,647 660,239 –158,090 1,023,025 x 986,922 463,024 523,898 6,731,288 x x 80,694 6,650,594 590,553 54,371 1,392,368 x 979,751 463,451 516,300 6,665,397 x x 95,301 6,570,096 603,655 393,829 1,496,765 x 973,252 429,864 543,389 7,213,956 x x 117,387 7,096,569 690,101 1,451,772 937,837 x 1,067,219 444,061 623,158 6,890,209 x x 174,409 6,715,800 773,970 1,509,328 1,974,009 x 1,643,008 662,563 980,445 7,705,109 x x 317,921 7,387,188 803,923 649,232 2,299,710 x 1,503,799 754,562 749,238 11,711,173 x x 1,909,618 9,801,555 898,514 739,322 2,251,692 x 1,360,950 637,793 723,157 11,798,163 x x 1,475,164 10,322,999 997,334 690,534 2,283,025 x 1,478,568 647,586 830,981 12,312,501 x x 1,513,837 10,798,664

1,020,772 –790,194 2,459,042 x 1,522,388 649,775 872,613 15,555,079 x x 1,908,596 13,646,484 1,109,116 –122,914 2,611,389 x 1,560,563 653,578 906,985 16,639,678 x x 1,870,751 14,768,927 1,139,710 27,809 2,475,741 x 1,640,648 662,444 978,205 16,585,846 x x 1,993,883 14,591,962 1,167,534 218,721 2,422,416 x 1,696,027 675,717 1,020,310 16,285,543 x x 2,126,408 14,159,136 1,134,051 –546,325 2,544,835 x 1,736,302 667,154 1,069,147 17,616,578 x x 2,262,323 15,354,255 1,158,403 –389,384 2,598,861 x 1,714,652 682,050 1,032,602 19,802,685 x x 2,400,404 17,402,281 1,231,962 572,164 2,755,891 x 1,919,227 775,696 1,143,531 19,902,477 x x 2,031,217 17,871,260 1,315,822 1,209,369 2,742,228 x 1,757,598 646,642 1,110,956 18,403,287 x x 919,242 17,484,045 1,543,307 120,612 2,960,996 x 1,965,949 778,079 1,187,870 19,992,782 x x 1,520,360 18,472,422 1,550,888 –880,597 3,167,452 x 2,164,487 783,617 1,380,869 20,883,845 x x 1,402,277 19,481,568 1,675,272 821,079 3,303,794 x 1,829,996 836,699 993,297 20,822,494 x x 110,688 20,711,806 1,830,211 1,213,607 3,321,181 x 1,886,084 838,161 1,047,923 21,005,878 x x 168,220 20,837,658 1,798,250 –1,469,507 3,354,376 x 1,841,835 817,847 1,023,988 24,607,885 x x 137,024 24,470,860 1,901,025 –1,060,304 3,530,011 x 1,816,147 828,651 987,496 23,985,130 x x 90,361 23,894,769 1,971,136 –963,515 3,695,645 x 1,824,179 832,673 991,506 24,394,873 x x 106,436 24,288,437 1,931,106 54,218 3,350,474 x 1,552,986 763,839 789,147 24,612,981 x x 136,435 24,476,546 1,918,750 –637,450 2,768,197 x 1,485,200 788,444 696,756 26,426,225 x x 226,911 26,199,314 1,998,140 –2,051,866 2,866,021 x 1,525,191 824,124 701,067 28,137,150 x x 286,607 27,850,543 2,205,439 –1,564,707 3,933,190 x 1,539,845 838,363 701,483 28,784,940 x x 369,704 28,415,236 2,289,150 –2,479,540 4,548,488 x 1,780,091 885,904 894,187 24,871,896 x x 131,608 24,740,289 1) Starting December 1994, this item has been included under "Statutory capital"; 2) Until December 1995, it was included under "Otherliabilities - Other"; 3) Until December 1994, it was included under "Other assets - Profit paid"; 4) Until December 1995, it wasincluded under "Other liabilities - Profit" and "Other liabilities - Profit paid and withholdings".

51*


16. CONSOLIDATED MONETARY SURVEY- millions of lei; end of period -

Period NET FOREIGN ASSETS NET DOMESTIC ASSETSTotal Gold Convertible Total Domestic credit

currencies, Total Credit to non-government Credit to government, netnet Total Lei Convertible Total Government

currencies budget**deficit (+)surplus (–)

1990 Dec. 41,994 27,059 14,935 471,541 645,022 718,770 660,855 57,915 –73,747 +3,416 1991 Dec. 4,109 125,834 –121,725 1,029,157 1,321,287 1,375,158 1,317,243 57,915 –53,872 +40,736 1992 Dec. 322,396 358,772 –36,376 1,533,694 1,778,368 1,912,770 1,698,819 213,951 –134,402 +303,603 1993 Dec. 1,155,699 1,179,371 –23,672 3,316,682 4,263,611 4,901,977 4,060,277 841,700 –638,367 +578,672 1994 Jan. 1,191,360 1,182,421 8,940 3,382,626 4,238,148 5,158,050 4,176,881 981,169 –919,902 +394,280

Feb. 1,191,026 1,184,852 6,174 3,743,671 4,542,971 5,451,314 4,313,602 1,137,711 –908,343 +492,987 Mar. 1,264,320 1,185,380 78,940 3,966,558 4,852,126 5,725,891 4,447,750 1,278,141 –873,766 +303,686 Apr. 1,773,102 1,550,244 222,857 3,707,994 4,474,664 5,987,327 4,653,347 1,333,980 –1,512,663 +271,215 May 884,561 1,643,949 –759,388 4,889,940 4,529,175 6,269,562 4,914,749 1,354,813 –1,740,387 +234,174 Jun. 1,174,221 1,677,914 –503,693 5,116,517 4,872,602 6,614,797 5,114,629 1,500,168 –1,742,195 +283,843 Jul. 1,386,230 1,681,525 –295,295 5,543,275 5,360,506 7,066,933 5,444,712 1,622,221 –1,706,427 +517,623 Aug. 1,511,641 1,686,549 –174,907 5,930,178 5,842,675 7,438,953 5,733,213 1,705,740 –1,596,278 +828,297 Sep. 1,670,893 1,690,793 –19,900 6,374,640 6,545,590 7,937,286 6,121,075 1,816,210 –1,391,696 +1,092,688 Oct. 1,841,268 1,695,636 145,631 6,572,978 6,963,132 8,410,464 6,577,149 1,833,315 –1,447,332 +1,059,705 Nov. 2,042,486 1,699,156 343,329 6,931,730 7,338,935 8,875,749 6,949,814 1,925,935 –1,536,814 +1,170,592 Dec. 1,866,740 1,704,473 162,267 8,781,952 9,183,376 9,484,528 7,434,662 2,049,867 –301,152 +1,987,582

1995 Jan. 1,611,143 1,709,004 –97,861 8,836,529 9,174,302 9,852,017 7,648,708 2,203,309 –677,715 +1,655,856 Feb. 1,471,482 1,713,097 –241,615 9,094,200 9,475,527 10,216,248 7,924,851 2,291,398 –740,721 +1,383,833 Mar. 1,115,484 1,717,297 –601,813 10,075,725 10,169,852 10,735,346 8,196,422 2,538,924 –565,494 +1,527,712 Apr. 945,787 1,721,624 –775,837 10,558,784 10,799,405 11,174,015 8,481,276 2,692,738 –374,610 +1,676,873 May 1,014,155 1,725,956 –711,801 11,023,736 11,183,059 11,515,637 8,613,742 2,901,895 –332,578 +1,430,815 Jun. 1,316,763 1,983,979 –667,217 11,436,596 11,872,516 11,897,657 8,832,182 3,065,475 –25,141 +1,808,682 Jul. 1,268,967 1,989,900 –720,933 12,083,238 12,670,722 12,463,545 9,245,237 3,218,308 207,177 +2,068,844 Aug. 1,140,524 1,993,816 –853,292 12,938,190 13,580,077 13,117,390 9,640,111 3,477,279 462,687 +2,303,629 Sep. 859,366 1,999,936 –1,140,570 13,762,906 14,213,155 14,044,570 10,299,999 3,744,570 168,585 +2,370,127 Oct. 677,541 2,005,146 –1,327,605 14,718,286 15,390,711 14,955,259 10,859,673 4,095,587 435,451 +2,654,583 Nov. 830,591 2,009,051 –1,178,460 15,776,628 16,388,573 15,860,558 11,186,939 4,673,619 528,015 +2,809,938 Dec. 724,272 2,010,863 –1,286,591 17,553,834 17,399,015 16,435,380 11,575,235 4,860,145 963,635 +3,299,138

1996 Jan. 454,663 2,013,361 –1,558,698 17,799,370 17,963,785 16,779,009 11,879,084 4,899,925 1,184,776 +3,437,260 Feb. 35,730 2,016,327 –1,980,597 18,868,828 18,733,458 17,494,902 11,968,103 5,526,800 1,238,556 +3,222,373 Mar. 273,935 2,064,788 –1,790,853 19,085,768 19,340,161 18,075,336 12,323,360 5,751,975 1,264,825 +3,564,153 Apr. 121,518 2,071,558 –1,950,040 19,676,030 20,079,107 18,656,659 12,633,130 6,023,529 1,422,448 +3,108,908 May 44,037 2,082,860 –2,038,823 20,600,376 20,207,260 19,369,185 13,260,786 6,108,398 838,076 +2,710,791 Jun. –103,068 2,086,929 –2,189,997 21,508,277 21,521,630 19,882,599 13,361,485 6,521,113 1,639,032 +3,344,135 Jul. –357,362 2,094,473 –2,451,835 22,938,044 22,895,662 21,015,266 13,951,467 7,063,799 1,880,396 +3,634,941 Aug. –607,055 2,101,529 –2,708,584 23,842,787 23,584,739 21,517,073 14,228,289 7,288,784 2,067,666 +3,355,211 Sep. –549,578 2,206,601 –2,756,179 24,663,038 24,869,454 22,159,796 14,570,018 7,589,778 2,709,659 +4,232,121 Oct. –785,055 2,227,932 –3,012,987 26,712,689 27,275,355 23,787,264 15,498,804 8,288,460 3,488,091 +3,546,704 Nov. –1,206,752 2,237,656 –3,444,408 28,894,681 29,022,797 25,064,617 16,308,816 8,755,801 3,958,180 +4,050,184 Dec.* –560,798 3,429,498 –3,990,296 30,895,428 31,450,022 26,841,440 16,942,968 9,898,472 4,608,582 x

1997 Jan. –2,294,670 3,437,347 –5,732,017 35,917,858 36,765,213 32,168,282 16,930,845 15,237,437 4,596,931 x Feb. –3,783,418 3,441,258 –7,224,676 41,588,600 41,867,367 37,344,272 16,793,692 20,550,580 4,523,095 x Mar. –2,980,942 3,482,332 –6,463,274 40,846,535 40,298,367 35,081,532 16,582,763 18,498,769 5,216,835 x Apr. –567,184 3,524,223 –4,091,407 40,314,614 39,368,706 34,636,679 16,413,130 18,223,549 4,732,028 x May –302,678 3,596,920 –3,899,598 41,943,749 40,414,751 35,971,428 15,284,545 20,686,884 4,443,322 x Jun. 3,843,558 3,666,749 176,809 40,113,334 37,697,187 36,195,679 15,590,125 20,605,554 1,501,508 x Jul. 6,058,925 3,776,438 2,282,487 41,763,605 40,393,221 37,372,980 16,013,010 21,359,970 3,020,241 x Aug. 6,674,929 3,834,957 2,839,972 42,642,621 41,991,059 39,668,335 16,753,861 22,914,474 2,322,724 x Sep. 9,088,931 3,882,668 5,206,263 42,437,745 42,591,947 38,216,570 14,897,989 23,318,581 4,375,377 x Oct. 9,021,591 3,977,731 5,043,860 44,237,647 44,722,317 39,733,240 15,791,272 23,941,968 4,989,077 x Nov. 11,147,343 4,034,017 7,113,326 45,256,959 45,959,883 36,245,999 16,159,658 20,086,341 9,713,884 x Dec. 16,883,566 8,997,727 7,885,839 45,266,848 47,431,996 35,900,662 16,232,369 19,668,294 11,531,334 x

1998 Jan. 15,863,481 9,133,061 6,730,420 44,396,585 49,348,211 38,245,741 16,998,302 21,247,439 11,102,470 x Feb. 15,793,900 9,160,306 6,633,594 46,044,696 51,784,285 40,260,789 18,007,279 22,253,510 11,523,497 x Mar. 14,063,827 9,225,814 4,838,013 49,745,922 54,559,216 41,319,059 18,495,720 22,823,339 13,240,157 x Apr. 13,724,498 9,264,503 4,459,995 51,160,132 56,981,530 42,404,302 19,415,841 22,988,461 14,577,229 x May 14,088,422 9,305,427 4,782,995 52,780,643 59,184,213 43,726,467 19,355,569 24,370,898 15,457,746 x Jun. 14,345,206 9,340,461 5,004,745 55,133,160 61,185,414 45,141,131 20,003,143 25,137,989 16,044,283 x Jul. 14,549,707 9,430,006 5,119,701 56,443,678 64,456,596 46,296,315 20,744,814 25,551,501 18,160,281 x Aug. 14,429,489 9,460,003 4,969,486 58,368,745 66,460,534 47,782,142 21,187,659 26,594,483 18,678,391 x Sep. 12,271,299 9,477,186 2,794,113 62,797,007 70,928,318 51,006,988 22,682,195 28,324,792 19,921,330 x Oct. 10,265,794 9,501,944 763,850 66,301,929 73,953,321 53,924,555 23,818,425 30,106,131 20,028,765 x Nov. 8,624,542 9,530,427 –905,885 70,571,583 77,814,084 56,435,604 24,555,172 31,880,432 21,378,480 x Dec. 14,792,501 10,155,485 4,637,016 77,737,391 81,288,969 59,086,517 24,272,609 34,813,908 22,202,452 x

Note: Starting December 1992, foreign banks' branches have been included.*) Starting December 1996, General Account of State Treasury has been included only in the NBR's balance sheet.**) Starting December 1996, this item has been included in General Account of State Treasury.

52*


16. CONSOLIDATED MONETARY SURVEY

Period




1996 Jan.Feb.Mar.Apr.May Jun.Jul.Aug.Sep.Oct.Nov.Dec.*




Treasury Other Local Social Research Healthcare Supplemen- Medium- and Deposits from Restruc-bills credits to budgets** security fund** fund** tary long-term medium- and turing

govern- deficit (+) budget** pension public debt long-term fund fromment surplus (–) deficit (+) fund 1) external stocks

surplus (–) financing revaluation**

– – –5 –71 – – –60,351 – – – – – –4,351 –16,892 –1,621 – –63,633 124,070 – –12,754 – – –432 –70,057 –3,008 –80 –120,482 155,314 –114,287 –3,290 – – –13,235 –209,803 –9,381 –9,144 –209,075 155,172 –179,370 –865 – – –22,262 –197,550 –3,241 –10,975 –215,029 155,169 –161,293 –1,012 – – –26,274 –167,169 –8,104 –6,722 –210,598 155,166 –185,196 –628

188,990 – –31,622 –4,562 –7,248 –6,744 –224,122 155,164 –234,374 –639 190,574 – –39,093 +13,343 –9,515 –8,158 –231,813 155,164 –232,469 –997

3,168 – –35,153 +46,500 –14,020 –4,457 –239,071 155,063 –342,500 –992 35,008 – –42,980 –106,392 –25,423 –20,210 –254,042 155,056 –415,278 –888 50,688 – –55,273 –114,521 –31,701 –21,390 –268,060 154,769 –486,411 –888 50,781 – –65,978 –71,057 –32,843 –22,843 –285,861 154,766 –523,122 –888 29,413 – –49,900 –99,318 –27,201 –26,125 –297,105 281,711 –572,546 –888

108,201 – –56,224 –114,356 –41,243 –26,988 –302,376 252,545 –574,626 –898 108,850 – –73,418 –173,254 –58,739 –7,265 –307,225 253,197 –609,877 –898 142,556 – –43,229 –261,039 –48,394 –23,610 –311,075 225,199 –739,055 –697 212,886 – –91,130 –232,054 –37,681 –11,995 –310,902 225,189 –741,451 –693 212,885 – –117,695 –200,696 –20,701 –9,295 –314,363 225,468 –376,426 –693 676,773 – –172,163 –224,606 –14,580 –8,231 –328,578 224,494 –388,793 –796 677,758 – –184,472 –118,434 –20,001 –11,767 –371,382 224,494 –405,399 –784 677,758 363,000 –185,750 –124,635 –25,174 –22,197 –356,782 224,557 –430,374 –714 652,876 447,000 –157,738 –140,859 –31,683 –24,466 –338,996 196,536 –469,371 –714 683,586 469,262 –152,555 –102,977 –37,668 –26,645 –327,186 187,541 –386,272 –714 691,265 534,000 –148,249 –129,592 –41,508 –30,347 –322,325 186,633 –382,090 –714 545,943 635,000 –182,110 –89,664 –45,058 –28,109 –360,963 186,633 –347,505 –714 646,791 715,000 –176,045 –90,882 –37,371 –34,367 –382,243 186,633 –282,090 –714 642,136 797,000 –159,989 –51,366 –33,907 –20,144 –417,625 186,633 –499,131 –725 677,772 1,040,277 –128,483 –99,804 –58 –27,154 –416,377 158,883 –419,956 –728 708,868 1,070,277 –164,707 –79,460 –149 –44,106 –387,766 158,883 –263,233 –720 939,944 1,140,277 –181,374 –31,308 –19 –44,330 –405,175 158,883 –226,971 –720

1,127,044 1,140,277 –197,492 +22,383 – –40,370 –398,995 158,774 –500,663 –721 1,221,567 1,140,277 –196,479 +82,012 –10 –40,256 –379,204 158,772 –87,956 –1,139 1,275,499 1,140,277 –203,701 +77,481 –2,254 –24,402 –360,828 149,928 –43,061 –994 1,317,825 1,140,277 –216,590 +133,630 –7,101 –27,145 –372,880 149,928 –50,625 –847 1,430,797 1,140,277 –216,537 +225,600 – –29,009 –351,962 149,928 –32,755 –845 1,603,554 1,140,277 –227,890 +304,504 –263 –39,594 –334,162 149,936 –33,362 –845 1,606,638 1,140,277 –230,502 +353,667 –5,093 –42,065 –336,914 149,936 –46,527 –845 3,488,517 1,140,276 –229,202 +435,714 –23 –54,425 –339,597 149,936 –40,793 –845 3,494,764 1,132,000 –220,955 +491,323 – –44,673 –332,540 149,913 –52,524 –845 3,764,299 1,132,000 x x x x –333 149,913 –17,556 x 4,087,431 1,132,000 x x x x –344 149,913 –15,197 x 4,438,389 1,132,000 x x x x –326 144,769 –184,925 x 4,122,495 1,132,000 x x x x –331 144,769 –176,528 x 5,012,366 1,132,000 x x x x –294 143,619 –183,992 x 5,000,143 1,132,000 x x x x –317 143,667 –183,988 x 4,846,472 1,132,000 x x x x –312 142,001 –181,095 x 4,954,731 1,132,000 x x x x –348 141,824 –186,761 x 6,340,651 – x x x x –345 141,824 –190,398 x 6,340,433 – x x x x –337 141,824 –193,287 x 3,883,072 – x x x x –357 141,824 –190,885 x 4,392,417 – x x x x –377 141,825 –193,009 x 5,752,249 – x x x x –378 141,825 –181,998 x 5,792,791 – x x x x –397 305,667 –187,598 x 5,674,395 – x x x x –374 438,157 –227,501 x 5,639,046 – x x x x –402 145,972 –214,601 x 6,550,169 – x x x x –858 155,650 –230,410 x 8,137,041 – x x x x –887 143,564 –250,753 x 8,822,379 – x x x x –916 143,564 –252,875 x

11,336,109 – x x x x –944 143,564 –249,202 x 11,076,002 – x x x x –1,174 143,564 –244,284 x 11,987,692 – x x x x – 143,564 –252,264 x 11,940,885 – x x x x – 142,161 –259,040 x 10,995,109 – x x x x – 139,302 –257,117 x 15,096,358 – x x x x – 137,262 –275,268 x

1) According to Law No.7/1992 and, starting September 1994, to Government Ordinance No.1/1994.

53*



Period








Other assets, netTotal

Deposits Unemploy- Other Gold State Forex General Other Depositsof statement extrabud- revaluation Treasury bonds Account govern- fromowned self benefit fund getary fund, net deposits of State ment Statefinancing funds ** Treasury securi- Treasuryinstitutions ties assets**

–3,915 –4,602 –8,219 – – x x x x –173,481 –4,503 –32,896 –30,511 –51,518 – x x x x –292,129

–10,020 –124,819 –71,893 –74,951 – x x x x –244,674 –14,741 –321,342 –365,410 –2,000 –37,845 x x x x –946,929 –13,189 –335,500 –386,914 –2,755 –119,632 x x x x –855,522 –14,454 –355,439 –450,053 –2,734 –129,128 x x x x –799,300 –16,289 –314,483 –564,894 –2,728 –113,900 x x x x –885,568 –19,342 –350,207 –597,664 –420,776 –232,925 x x x x –766,671 –23,629 –386,103 –428,521 –421,376 –283,471 x x x x 360,765 –30,229 –373,538 –481,604 –421,368 –44,149 x x x x 243,914 –36,848 –424,885 –513,916 –421,368 –54,246 x x x x 182,769 –35,573 –474,308 –651,889 –421,362 –44,399 x x x x 87,502 –29,202 –454,983 –762,561 –421,362 –54,319 x x x x –170,949 –30,315 –505,997 –732,268 –421,356 –61,137 x x x x –390,154 –31,556 –561,811 –764,201 –421,354 –59,854 x x x x –407,205 –35,700 –460,557 –666,734 –2,000 –64,399 x x x x –401,425 –21,705 –509,799 –778,419 –2,000 –33,817 x x x x –337,773 –23,012 –534,521 –901,062 –2,000 –62,443 x x x x –381,327 –24,755 –1,066,038 –691,593 –2,000 –72,340 x x x x –94,127 –26,012 –1,093,821 –647,126 –2,000 –72,536 x x x x –240,620 –30,926 –1,131,881 –628,630 –2,000 –89,645 x x x x –159,324 –31,530 –1,174,783 –659,741 –2,000 –98,353 x x x x –435,920 –34,833 –1,275,615 –738,427 –2,000 –117,163 x x x x –587,484 –35,635 –1,265,372 –822,543 –2,000 –72,466 x x x x –641,887 –35,702 –1,339,028 –1,015,109 –2,000 –123,156 x x x x –450,248 –35,954 –1,441,605 –1,155,503 –2,000 –128,782 x x x x –672,425 –35,726 –1,472,697 –1,095,610 –2,000 –118,772 x x x x –611,946 –82,211 –1,712,196 –1,294,693 –2,000 –28,774 x x x x 154,818 –39,673 –1,761,281 –1,383,910 –2,000 –63,506 x x x x –164,415 –42,175 –1,795,579 –1,447,146 –2,000 –46,124 x x x x 135,370 –62,217 –1,823,683 –1,673,686 –2,000 –47,979 x x x x –254,393 –91,315 –1,782,242 –1,622,380 –2,000 –86,107 x x x x –403,077 –99,800 –1,866,904 –1,848,426 –2,000 –63,530 x x x x 393,116

–108,273 –1,944,474 –1,644,335 –2,000 –72,493 x x x x –13,353 –115,429 –2,004,424 –1,869,552 –2,000 –78,634 x x x x 42,383 –125,391 –2,086,060 –1,882,601 –2,000 –74,591 320,943 x x x 258,048 –134,926 –2,164,523 –2,052,815 –2,000 –98,522 341,752 x x x –206,417 –131,429 –2,246,449 –2,472,020 –2,000 –110,162 353,890 x x x –562,667 –141,257 –2,340,865 –2,442,485 –2,000 –158,195 376,336 x x x –128,116

x –28,079 –1,089,323 x x 422,868 274,793 x x –554,594 x –23,075 –1,171,464 – x 621,674 –34,007 x –150,000 –847,355 x –20,524 –1,163,557 – x 811,571 –254,303 x –380,000 –278,767 x –18,067 –1,436,931 – x 1,257,880 191,547 x – 548,168 x –16,344 –1,741,233 – x 1,275,417 –789,511 x –100,000 945,908 x –14,839 –1,731,253 – x 1,278,238 –1,180,329 x – 1,528,998 x –13,760 –4,637,393 – x 1,263,455 –399,860 x –650,000 2,416,147 x –12,288 –3,020,185 – x 1,313,439 –1,096,031 x –206,141 1,370,385 x –40,566 –3,017,960 – x 560,325 –578,486 x –892,322 651,562 x –39,796 –3,258,849 – x 570,450 –474,537 3,374,497 –2,085,022 –154,202 x –39,743 –2,088,190 – x 580,425 –45 3,374,497 –671,522 –484,670 x –138,060 –1,648,695 – x 589,500 –1,247,892 7,874,497 –56,322 –702,924 x –67,995 –1,918,746 – x 601,725 –669,845 7,874,497 – –2,165,148 x –56,521 –1,398,978 – x 618,600 –770,591 7,874,497 –1,075,000 –4,951,626 x –55,587 –1,401,455 – x 607,875 –1,386,511 7,874,497 – –5,739,590 x –54,534 –1,590,512 – x 1,467,721 –328,460 8,175,926 – –4,813,294 x –53,337 –1,169,304 – x 2,305,467 –1,156,024 8,175,876 – –5,821,398 x –51,261 –1,496,775 – x 2,351,385 –1,550,444 8,175,877 – –6,403,570 x –48,893 –1,483,880 – x 2,377,054 –1,688,076 8,175,926 – –6,052,255 x –126,464 –1,391,896 – x 3,251,543 –2,978,354 8,175,925 – –8,012,918 x –123,598 –1,283,856 – x 3,330,079 –2,394,268 8,175,926 – –8,091,789 x –121,340 –1,270,323 – x 3,915,418 –2,657,344 8,175,927 – –8,131,311 x –117,136 –1,319,353 – x 4,008,199 –2,542,880 8,175,927 – –7,651,391 x –114,682 –1,699,959 – x 4,207,710 –67,810 8,175,927 – –7,242,501 x –101,340 –5,372,787 – x 4,570,380 –22,918 8,170,763 – –3,551,578


54*



Period







(continued) - millions of lei; end of period -BROAD MONEY (M2) Memorandum itemsTotal of which: Gold price Exchange

Noncon- In transit Capital Participa- Other Lei Convertible (lei/gram) rate; endvertible accounts accounts tions in currencies 1) of periodforeign payable to (own funds) foreign (lei/USD)assets, depositors banks 2)net

–32,585 –52,193 –32,903 2,193 –57,993 513,535 498,425 15,110 394.00 34.71–54,205 –320,403 –79,785 12,512 149,752 1,033,266 992,857 40,410 1,800.00 189.0019,241 –118,860 –274,750 63,328 66,368 1,856,091 1,523,916 332,175 5,000.00 460.0017,226 –182,720 –599,439 256,804 –438,800 4,472,381 3,175,943 1,296,438 16,000.00 1,276.0016,984 –203,685 –603,599 166,960 –232,183 4,573,986 3,058,778 1,515,208 16,000.00 1,450.0018,114 –214,109 –637,727 181,379 –146,957 4,934,697 3,322,975 1,611,722 16,000.00 1,570.0016,532 –246,877 –767,297 214,117 –102,193 5,230,726 3,456,193 1,774,533 16,000.00 1,650.0018,119 –202,162 –762,984 183,055 –2,699 5,481,095 3,678,159 1,802,937 20,873.00 1,659.0017,532 –193,062 –777,454 162,405 1,151,344 5,774,501 3,995,612 1,778,889 20,873.00 1,659.0015,917 –268,517 –832,834 175,498 1,153,851 6,290,738 4,523,896 1,766,842 20,873.00 1,677.0015,375 –216,579 –843,509 184,630 1,042,853 6,929,505 5,076,087 1,853,418 20,873.00 1,690.0015,221 –204,812 –868,286 179,552 965,827 7,441,819 5,535,830 1,905,989 20,873.00 1,701.00–7,388 –238,525 –931,969 170,797 836,136 8,045,533 5,969,888 2,075,645 20,873.00 1,756.00–8,814 –230,396 –912,944 167,958 594,042 8,414,245 6,336,866 2,077,380 20,873.00 1,752.00–8,085 –244,835 –934,870 178,102 602,483 8,974,215 6,803,489 2,170,726 20,873.00 1,770.00–9,880 –194,460 –1,419,357 100,356 1,121,917 10,648,692 8,290,569 2,358,123 20,873.00 1,767.00–9,611 –223,781 –1,489,281 122,967 1,261,933 10,447,672 8,081,495 2,366,177 20,873.00 1,780.00–8,791 –236,850 –1,516,599 125,858 1,255,054 10,565,682 8,131,056 2,434,626 20,873.00 1,810.00

–10,039 –215,816 –1,633,025 132,404 1,632,350 11,191,209 8,645,329 2,545,880 20,873.00 1,847.00–12,119 –275,885 –1,631,067 134,805 1,543,645 11,504,571 8,942,973 2,561,599 20,873.00 1,879.00–11,560 –260,374 –1,750,444 138,735 1,724,320 12,037,891 9,335,811 2,702,079 20,873.00 1,937.00–12,641 –300,540 –1,875,390 141,282 1,611,369 12,753,358 9,834,952 2,918,406 23,939.84 1,975.00–13,090 –273,018 –1,972,489 145,373 1,525,740 13,352,205 10,408,402 2,943,803 23,939.84 2,018.00–13,950 –252,474 –2,078,288 143,680 1,559,146 14,078,713 11,045,570 3,033,144 23,939.84 2,069.00–14,786 –269,514 –2,283,326 150,564 1,966,814 14,622,272 11,445,260 3,177,012 23,939.84 2,128.00–16,079 –275,493 –2,379,668 159,154 1,839,661 15,395,827 12,049,926 3,345,901 23,939.84 2,225.00–16,335 –279,323 –2,571,218 179,538 2,075,392 16,607,218 12,626,174 3,981,045 23,939.84 2,547.00–16,567 –240,927 –4,023,136 182,213 4,253,235 18,278,106 14,146,074 4,132,032 23,940.00 2,578.00–18,015 –239,569 –3,689,296 181,569 3,600,896 18,254,033 14,194,635 4,059,399 23,940.00 2,640.00

–7,604 –205,040 –4,022,839 200,321 4,170,532 18,904,558 14,300,741 4,603,817 39,122.90 2,859.00–9,283 –404,838 –4,074,559 203,017 4,031,270 19,359,703 14,612,637 4,747,066 39,122.90 2,937.00

–26,553 –405,207 –3,760,417 198,990 3,590,110 19,797,547 15,264,128 4,533,420 39,122.90 2,913.00–26,406 –340,214 –2,980,943 200,632 3,540,047 20,644,413 15,915,310 4,729,103 39,122.90 2,951.00–28,472 –337,944 –3,658,702 207,888 3,803,877 21,405,209 16,546,894 4,858,316 39,122.90 3,028.00–33,940 –291,962 –3,905,954 234,588 4,039,651 22,580,683 17,435,183 5,145,500 39,122.90 3,135.00–31,176 –252,787 –4,225,827 236,895 4,530,944 23,235,732 18,046,035 5,189,697 39,122.90 3,162.00–31,949 –408,528 –3,390,311 241,481 3,382,889 24,113,460 18,684,140 5,429,319 39,122.90 3,261.00–33,427 –554,618 –4,144,601 252,555 3,917,424 25,927,634 20,176,954 5,750,680 39,122.90 3,375.00–33,508 –447,813 –4,480,377 270,706 4,562,876 27,687,929 21,215,464 6,472,465 39,122.90 3,591.00–36,188 –518,253 –5,300,526 x 5,300,373 30,334,630 23,249,001 7,085,630 39,122.90 4,035.00–37,321 –747,263 –7,251,001 x 7,188,229 33,623,187 22,781,401 10,841,786 95,823.00 5,932.00–37,618 –659,253 –6,542,456 x 6,960,560 37,805,182 22,750,316 15,054,866 95,823.00 7,744.00–41,231 –362,103 –6,862,253 x 7,813,755 37,865,593 24,033,926 13,831,666 95,823.00 6,996.00–44,769 –452,289 –7,042,612 x 8,485,577 39,747,430 25,814,138 13,933,292 95,823.00 7,095.00–54,047 –631,982 –5,500,404 x 7,715,432 41,641,071 28,395,415 13,245,656 95,823.00 7,110.00

–125,000 –759,375 –6,382,450 x 9,682,971 43,956,892 30,882,184 13,074,708 95,823.00 7,032.00–138,901 –602,762 –6,771,560 x 8,883,608 47,822,530 33,725,962 14,096,568 95,823.00 7,354.00–143,436 –726,607 –7,126,831 x 8,648,435 49,317,550 34,518,200 14,799,350 95,823.00 7,471.00–173,304 –1,128,350 –6,128,867 x 7,276,320 51,526,675 36,160,936 15,365,740 95,823.00 7,613.00–247,100 –1,038,552 –6,227,635 x 7,028,617 53,259,238 37,369,406 15,889,832 95,823.00 7,741.00–171,668 –832,572 –7,543,135 x 7,844,451 56,404,302 38,725,218 17,679,085 95,823.00 7,860.00–175,727 –87,231 –9,101,579 x 7,199,389 62,150,414 44,464,140 17,686,275 95,823.00 8,023.00–168,209 –473,850 –8,323,278 x 4,013,711 60,260,066 42,211,050 18,049,016 95,823.00 8,248.00–179,197 –656,960 –7,475,583 x 2,572,151 61,838,596 43,878,469 17,960,127 95,823.00 8,105.00–149,470 –1,300,878 –8,816,303 x 5,453,357 63,809,749 44,364,074 19,445,675 95,823.00 8,490.00–133,387 –727,681 –9,733,941 x 4,773,611 64,884,630 46,011,154 18,873,476 95,823.00 8,345.00–147,050 –646,902 –6,617,998 x 1,008,380 66,869,065 47,443,331 19,425,733 95,823.00 8,511.00–137,294 –971,317 –6,954,228 x 2,010,584 69,478,366 49,390,349 20,088,017 95,823.00 8,670.00–138,929 –688,222 –7,807,155 x 621,388 70,993,385 50,312,920 20,680,465 95,823.00 8,744.00–144,129 –762,036 –8,506,666 x 1,321,042 72,798,234 51,423,047 21,375,187 95,823.00 8,924.00–125,040 –721,819 –8,412,449 x 1,127,997 75,068,306 53,126,091 21,942,215 95,823.00 9,238.00–122,776 –615,469 –7,767,304 x 854,158 76,567,724 53,870,730 22,696,994 95,823.00 9,592.00–121,583 –375,154 –9,491,589 x 2,745,826 79,196,125 55,736,386 23,459,739 95,823.00 10,082.00–125,870 21,550 –11,457,847 x 8,010,590 92,529,892 62,328,428 30,201,465 101,272.00 10,951.00

1) February through November 1996 and March through November 1997, movements (inputs and outputs) were carried out at current price.The stock is revalued at the end of the year. 2) Starting December 1996, this item has been included in "Net foreign assets".

55*


17. MONETARY SURVEY- millions of lei; end of period -

Period TOTAL FOREIGN ASSETS DOMESTIC ASSETSASSETS Total Gold Convertible

currenciesmill. USD Non-

convertible currencies

TOTAL Credit to non- government

Credit to government, net

1985 Dec. 489,686 22,637 792 12,155 773 9,690 467,048 675,908 –208,860 1986 Dec. 490,629 28,676 487 20,282 1,327 7,908 461,953 696,951 –234,998 1987 Dec. 488,867 28,275 283 20,872 1,519 7,120 460,591 773,645 –313,054 1988 Dec. 499,185 44,081 17,753 12,390 862 13,939 455,103 813,105 –358,002 1989 Dec. 563,625 66,413 26,639 28,631 1,983 11,143 497,212 810,405 –313,193 1990 Dec. 679,442 69,234 27,059 20,511 591 21,664 610,208 683,955 –73,748 1991 Dec. 1,591,529 270,242 125,834 107,495 569 36,914 1,321,287 1,375,158 –53,871 1992 Dec. 2,565,062 786,694 358,772 404,567 879 23,355 1,778,368 1,912,770 –134,402 1993 Dec. 6,808,787 2,545,176 1,179,371 1,338,668 1,049 27,137 4,263,611 4,901,977 –638,367 1994 Jan. 6,868,405 2,630,257 1,182,421 1,420,129 979 27,707 4,238,148 5,158,050 –919,902

Feb. 7,297,771 2,754,801 1,184,852 1,541,880 982 28,069 4,542,971 5,451,314 –908,343 Mar. 7,731,728 2,879,602 1,185,380 1,667,269 1,010 26,954 4,852,126 5,725,891 –873,766 Apr. 7,855,660 3,380,996 1,550,244 1,801,722 1,086 29,029 4,474,664 5,987,327 –1,512,663 May 8,639,945 4,110,770 1,643,949 2,438,158 1,470 28,663 4,529,175 6,269,562 –1,740,387 Jun. 9,375,540 4,502,938 1,677,914 2,797,051 1,668 27,973 4,872,602 6,614,797 –1,742,195 Jul. 10,019,669 4,659,163 1,681,525 2,950,083 1,746 27,555 5,360,506 7,066,933 –1,706,427 Aug. 10,627,094 4,784,418 1,686,549 3,070,629 1,805 27,241 5,842,675 7,438,953 –1,596,278 Sep. 11,494,446 4,948,857 1,690,793 3,251,651 1,852 6,413 6,545,590 7,937,286 –1,391,696 Oct. 12,025,521 5,062,389 1,695,636 3,360,649 1,918 6,104 6,963,132 8,410,464 –1,447,332 Nov. 12,597,834 5,258,899 1,699,156 3,554,584 2,008 5,159 7,338,935 8,875,749 –1,536,814 Dec. 14,678,923 5,495,546 1,704,473 3,785,906 2,143 5,167 9,183,376 9,484,528 –301,152

1995 Jan. 14,687,859 5,513,557 1,709,004 3,798,536 2,134 6,017 9,174,302 9,852,017 –677,715 Feb. 14,920,252 5,444,725 1,713,097 3,725,465 2,058 6,162 9,475,527 10,216,248 –740,721 Mar. 15,499,519 5,329,667 1,717,297 3,605,785 1,952 6,585 10,169,852 10,735,346 –565,494 Apr. 16,049,057 5,249,652 1,721,624 3,522,000 1,874 6,028 10,799,405 11,174,015 –374,610 May 16,390,702 5,207,642 1,725,956 3,475,496 1,794 6,190 11,183,059 11,515,637 –332,578 Jun. 17,507,319 5,634,803 1,983,979 3,644,836 1,845 5,988 11,872,516 11,897,657 –25,141 Jul. 18,203,153 5,532,431 1,989,900 3,536,419 1,752 6,112 12,670,722 12,463,545 207,177 Aug. 18,970,345 5,390,269 1,993,816 3,390,353 1,639 6,100 13,580,077 13,117,390 462,687 Sep. 19,378,768 5,165,613 1,999,936 3,159,755 1,485 5,922 14,213,155 14,044,570 168,585 Oct. 20,554,559 5,163,848 2,005,146 3,152,434 1,417 6,268 15,390,711 14,955,259 435,451 Nov. 22,248,177 5,859,604 2,009,051 3,843,544 1,509 7,009 16,388,573 15,860,558 528,015 Dec. 23,669,925 6,270,910 2,010,863 4,252,923 1,650 7,124 17,399,015 16,435,380 963,635

1996 Jan. 23,840,446 5,876,660 2,013,361 3,855,984 1,461 7,315 17,963,785 16,779,009 1,184,776 Feb. 24,793,117 6,059,659 2,016,327 4,035,311 1,411 8,021 18,733,458 17,494,902 1,238,556 Mar. 26,014,843 6,674,682 2,064,788 4,601,983 1,567 7,911 19,340,161 18,075,336 1,264,825 Apr. 26,376,385 6,297,278 2,071,558 4,218,024 1,448 7,696 20,079,107 18,656,659 1,422,448 May 27,561,867 7,354,607 2,082,860 5,264,082 1,784 7,665 20,207,260 19,369,185 838,076 Jun. 29,484,109 7,962,479 2,086,929 5,867,642 1,938 7,908 21,521,630 19,882,599 1,639,032 Jul. 31,026,351 8,130,689 2,094,473 6,027,812 1,923 8,404 22,895,662 21,015,266 1,880,396 Aug. 31,281,111 7,696,372 2,101,529 5,586,300 1,767 8,543 23,584,739 21,517,073 2,067,666 Sep. 32,710,307 7,840,853 2,206,601 5,625,692 1,725 8,560 24,869,454 22,159,796 2,709,659 Oct. 36,745,919 9,470,564 2,227,932 7,233,791 2,143 8,841 27,275,355 23,787,264 3,488,091 Nov. 38,681,051 9,658,255 2,237,656 7,411,335 2,064 9,264 29,022,797 25,064,617 3,958,180 Dec. 43,655,761 12,205,739 3,429,498 8,766,061 2,173 10,180 31,450,022 26,841,440 4,608,582

1997 Jan. 51,191,973 14,426,759 3,437,347 10,974,955 1,850 14,457 36,765,213 32,168,282 4,596,931 Feb. 59,511,219 17,643,853 3,441,258 14,183,931 1,832 18,664 41,867,367 37,344,272 4,523,095 Mar. 57,476,407 17,178,041 3,482,332 13,678,536 1,955 17,173 40,298,367 35,081,532 5,216,835 Apr. 58,972,451 19,603,745 3,524,223 16,062,471 2,264 17,050 39,368,706 34,636,679 4,732,028 May 60,764,034 20,349,283 3,596,920 16,744,542 2,355 7,821 40,414,751 35,971,428 4,443,322 Jun. 61,276,623 23,579,436 3,666,749 19,904,935 2,831 7,752 37,697,187 36,195,679 1,501,508 Jul. 67,102,383 26,709,162 3,776,438 22,924,763 3,117 7,961 40,393,221 37,372,980 3,020,241 Aug. 69,985,219 27,994,159 3,834,957 24,151,078 3,233 8,124 41,991,059 39,668,335 2,322,724 Sep. 74,903,579 32,311,632 3,882,668 28,420,684 3,733 8,280 42,591,947 38,216,570 4,375,377 Oct. 77,579,626 32,857,308 3,977,731 28,871,402 3,730 8,176 44,722,317 39,733,240 4,989,077 Nov. 80,591,193 34,631,310 4,034,017 30,589,002 3,892 8,292 45,959,883 36,245,999 9,713,884 Dec. 87,583,785 40,151,789 8,997,727 31,145,644 3,882 8,418 47,431,996 35,900,662 11,531,334

1998 Jan. 88,745,712 39,397,501 9,133,061 30,255,003 3,668 9,437 49,348,211 38,245,741 11,102,470 Feb. 90,703,603 38,919,318 9,160,306 29,749,694 3,671 9,318 51,784,285 40,260,789 11,523,497 Mar. 92,623,142 38,063,926 9,225,814 28,828,412 3,396 9,699 54,559,216 41,319,059 13,240,157 Apr. 94,454,614 37,473,083 9,264,503 28,199,011 3,379 9,569 56,981,530 42,404,302 14,577,229 May 96,842,487 37,658,274 9,305,427 28,343,238 3,330 9,609 59,184,213 43,726,467 15,457,746 Jun. 99,639,583 38,454,169 9,340,461 29,103,309 3,357 10,399 61,185,414 45,141,131 16,044,283 Jul. 102,717,640 38,261,044 9,430,006 28,820,990 3,296 10,048 64,456,596 46,296,315 18,160,281 Aug. 104,508,751 38,048,217 9,460,003 28,577,975 3,202 10,240 66,460,534 47,782,142 18,678,391 Sep. 107,718,312 36,789,994 9,477,186 27,302,219 2,955 10,589 70,928,318 51,006,988 19,921,330 Oct. 110,079,627 36,126,307 9,501,944 26,613,329 2,775 11,034 73,953,321 53,924,555 20,028,765 Nov. 112,173,909 34,359,825 9,530,427 24,817,869 2,462 11,529 77,814,084 56,435,604 21,378,480 Dec. 123,801,015 42,512,046 10,155,485 32,344,187 2,954 12,374 81,288,969 59,086,517 22,202,452

Note: Starting December 1992, foreign banks' branches have been included.

56*


17. MONETARY SURVEY

Period

1985 Dec.1986 Dec.1987 Dec.1988 Dec.1989 Dec.1990 Dec.1991 Dec.1992 Dec.1993 Dec.1994 Jan.






(continued) - millions of lei; end of period -TOTAL FOREIGN LIABILITIES DOMESTIC LIABILITIESLIABILITIES Total Convertible

currenciesmill. USD Non-

convertible currencies

Total Broad money In transit accounts payable to depositors

Capital accounts(own funds)

Other liabilities, net

489,686 115,007 111,539 7,091 3,468 374,679 318,798 12,642 12,560 30,679 490,629 105,615 103,615 6,781 2,000 385,013 343,985 15,677 12,789 12,563 488,867 90,083 88,024 6,406 2,059 398,784 359,206 21,232 13,156 5,190 499,185 33,100 30,878 2,149 2,222 466,084 395,942 21,738 30,376 18,028 563,625 7,414 4,744 329 2,669 556,211 420,914 97,591 30,563 7,144 679,442 59,813 5,576 161 54,236 619,629 514,360 52,193 32,903 20,999 1,591,529 320,345 229,220 1,213 91,125 1,271,184 1,033,266 320,403 79,785 –162,270 2,565,062 445,057 440,943 959 4,114 2,120,005 1,856,091 118,860 274,750 –129,696 6,808,787 1,372,275 1,362,340 1,068 9,935 5,436,512 4,472,381 182,720 599,439 181,973 6,868,405 1,421,924 1,411,189 973 10,735 5,446,481 4,573,986 203,685 603,599 65,210 7,297,771 1,545,673 1,535,706 978 9,967 5,752,098 4,934,697 214,109 637,727 –34,434 7,731,728 1,598,902 1,588,329 963 10,573 6,132,826 5,230,726 246,877 767,297 –112,075 7,855,660 1,589,775 1,578,865 952 10,910 6,265,885 5,481,095 202,162 762,984 –180,356 8,639,945 3,208,677 3,197,546 1,927 11,131 5,431,268 5,774,501 193,062 777,454 –1,313,749 9,375,540 3,312,799 3,300,744 1,968 12,056 6,062,740 6,290,738 268,517 832,834 –1,329,349 10,019,669 3,257,558 3,245,378 1,920 12,180 6,762,111 6,929,505 216,579 843,509 –1,227,482 10,627,094 3,257,556 3,245,536 1,908 12,020 7,369,538 7,441,819 204,812 868,286 –1,145,379 11,494,446 3,285,352 3,271,551 1,863 13,801 8,209,095 8,045,533 238,525 931,969 –1,006,932 12,025,521 3,229,936 3,215,018 1,835 14,918 8,795,585 8,414,245 230,396 912,944 –761,999 12,597,834 3,224,499 3,211,255 1,814 13,243 9,373,336 8,974,215 244,835 934,870 –780,585 14,678,923 3,638,686 3,623,639 2,051 15,047 11,040,237 10,648,692 194,460 1,419,357 –1,222,273 14,687,859 3,912,025 3,896,397 2,189 15,628 10,775,834 10,447,672 223,781 1,489,281 –1,384,900 14,920,252 3,982,033 3,967,080 2,192 14,953 10,938,219 10,565,682 236,850 1,516,599 –1,380,912 15,499,519 4,224,222 4,207,598 2,278 16,624 11,275,297 11,191,209 215,816 1,633,025 –1,764,753 16,049,057 4,315,984 4,297,837 2,287 18,147 11,733,073 11,504,571 275,885 1,631,067 –1,678,450 16,390,702 4,205,048 4,187,298 2,162 17,750 12,185,654 12,037,891 260,374 1,750,444 –1,863,055 17,507,319 4,330,682 4,312,053 2,183 18,629 13,176,637 12,753,358 300,540 1,875,390 –1,752,651 18,203,153 4,276,554 4,257,352 2,110 19,202 13,926,599 13,352,205 273,018 1,972,489 –1,671,113 18,970,345 4,263,696 4,243,645 2,051 20,050 14,706,650 14,078,713 252,474 2,078,288 –1,702,826 19,378,768 4,321,033 4,300,325 2,021 20,708 15,057,734 14,622,272 269,514 2,283,326 –2,117,378 20,554,559 4,502,386 4,480,039 2,014 22,347 16,052,173 15,395,827 275,493 2,379,668 –1,998,815 22,248,177 5,045,348 5,022,004 1,972 23,344 17,202,829 16,607,218 279,323 2,571,218 –2,254,930 23,669,925 5,563,204 5,539,514 2,149 23,691 18,106,721 18,278,106 240,927 4,023,136 –4,435,449 23,840,446 5,440,012 5,414,682 2,051 25,330 18,400,434 18,254,033 239,569 3,689,296 –3,782,465 24,793,117 6,031,533 6,015,909 2,104 15,625 18,761,584 18,904,558 205,040 4,022,839 –4,370,853 26,014,843 6,410,030 6,392,837 2,177 17,194 19,604,813 19,359,703 404,838 4,074,559 –4,234,286 26,376,385 6,202,313 6,168,064 2,117 34,249 20,174,072 19,797,547 405,207 3,760,417 –3,789,100 27,561,867 7,336,977 7,302,905 2,475 34,071 20,224,891 20,644,413 340,214 2,980,943 –3,740,679 29,484,109 8,094,019 8,057,639 2,661 36,380 21,390,091 21,405,209 337,944 3,658,702 –4,011,765 31,026,351 8,521,991 8,479,647 2,705 42,344 22,504,360 22,580,683 291,962 3,905,954 –4,274,239 31,281,111 8,334,603 8,294,884 2,623 39,719 22,946,508 23,235,732 252,787 4,225,827 –4,767,838 32,710,307 8,422,380 8,381,871 2,570 40,509 24,287,927 24,113,460 408,528 3,390,311 –3,624,371 36,745,919 10,289,046 10,246,778 3,036 42,268 26,456,873 25,927,634 554,618 4,144,601 –4,169,979 38,681,051 10,898,514 10,855,743 3,023 42,771 27,782,537 27,687,929 447,813 4,480,377 –4,833,581 43,655,761 12,802,724 12,756,357 3,161 46,368 30,853,036 30,334,630 518,253 5,300,526 –5,300,373 51,191,973 16,758,750 16,706,973 2,816 51,778 34,433,222 33,623,187 747,263 7,251,001 –7,188,229 59,511,219 21,464,888 21,408,606 2,765 56,282 38,046,332 37,805,182 659,253 6,542,456 –6,960,560 57,476,407 20,200,214 20,141,810 2,879 58,403 37,276,194 37,865,593 362,103 6,862,253 –7,813,755 58,972,451 20,215,698 20,153,879 2,841 61,819 38,756,753 39,747,430 452,289 7,042,612 –8,485,577 60,764,034 20,706,009 20,644,140 2,904 61,869 40,058,025 41,641,071 631,982 5,500,404 –7,715,432 61,276,623 19,860,878 19,728,125 2,805 132,752 41,415,745 43,956,892 759,375 6,382,450 –9,682,971 67,102,383 20,789,139 20,642,276 2,807 146,862 46,313,244 47,822,530 602,762 6,771,560 –8,883,608 69,985,219 21,462,666 21,311,106 2,853 151,560 48,522,552 49,317,550 726,607 7,126,831 –8,648,435 74,903,579 23,396,006 23,214,421 3,049 181,585 51,507,573 51,526,675 1,128,350 6,128,867 –7,276,320 77,579,626 24,082,817 23,827,541 3,078 255,276 53,496,809 53,259,238 1,038,552 6,227,635 –7,028,617 80,591,193 23,655,635 23,475,675 2,987 179,959 56,935,559 56,404,302 832,572 7,543,135 –7,844,451 87,583,785 23,443,950 23,259,805 2,899 184,145 64,139,835 62,150,414 87,231 9,101,579 –7,199,389 88,745,712 23,702,229 23,524,583 2,852 177,646 65,043,483 60,260,066 473,850 8,323,278 –4,013,711 90,703,603 23,304,615 23,116,100 2,852 188,515 67,398,989 61,838,596 656,960 7,475,583 –2,572,151 92,623,142 24,149,569 23,990,400 2,826 159,170 68,473,573 63,809,749 1,300,878 8,816,303 –5,453,357 94,454,614 23,881,973 23,739,016 2,845 142,957 70,572,641 64,884,630 727,681 9,733,941 –4,773,611 96,842,487 23,716,902 23,560,243 2,768 156,659 73,125,584 66,869,065 646,902 6,617,998 –1,008,380 99,639,583 24,246,257 24,098,564 2,780 147,693 75,393,327 69,478,366 971,317 6,954,228 –2,010,584 102,717,640 23,850,266 23,701,289 2,711 148,977 78,867,374 70,993,385 688,222 7,807,155 –621,388 104,508,751 23,762,857 23,608,489 2,646 154,368 80,745,894 72,798,234 762,036 8,506,666 –1,321,042 107,718,312 24,643,735 24,508,106 2,653 135,629 83,074,577 75,068,306 721,819 8,412,449 –1,127,997 110,079,627 25,983,288 25,849,479 2,695 133,810 84,096,339 76,567,724 615,469 7,767,304 –854,158 112,173,909 25,856,866 25,723,754 2,551 133,112 86,317,043 79,196,125 375,154 9,491,589 –2,745,826 123,801,015 27,845,415 27,707,170 2,530 138,245 95,955,599 92,529,892 –21,550 11,457,847 –8,010,590

57*


18. DOMESTIC CREDIT- millions of lei; end of period -

Period TOTAL CREDIT TO NON-GOVERNMENTTotal Lei credits

Total Short-term credits Medium- and long-term creditsTotal Companies

with majority state-owned capital

Companies with majority private capital

House- holds

Other 1) Total Companieswith majority state-owned capital

Companies with majority private capital

House- holds

1985 Dec. 467,048 675,908 663,510 394,182 394,182 x – ... 269,327 269,327 x – 1986 Dec. 461,953 696,951 687,193 410,799 410,799 x – ... 276,394 276,394 x – 1987 Dec. 460,591 773,645 754,006 474,872 474,872 x – ... 279,134 279,134 x – 1988 Dec. 455,103 813,105 794,923 516,789 516,789 x – ... 278,134 278,134 x – 1989 Dec. 497,212 810,405 790,096 565,495 565,495 x – ... 224,602 224,602 x – 1990 Dec. 610,208 683,955 660,855 438,329 438,179 ... 150 ... 222,526 204,964 ... 17,562 1991 Dec. 1,321,288 1,375,159 1,317,244 1,061,663 1,011,436 45,028 5,199 ... 255,581 179,648 19,351 56,582 1992 Dec. 1,778,368 1,912,770 1,698,819 1,435,091 1,321,489 104,972 4,677 3,954 263,728 174,999 36,730 51,478 1993 Dec. 4,263,611 4,901,977 4,060,277 3,671,870 3,075,961 529,515 47,882 18,512 388,407 199,418 112,404 73,765 1994 Jan. 4,238,148 5,158,050 4,176,881 3,783,584 3,136,052 591,289 43,518 12,726 393,297 206,956 110,529 72,754

Feb. 4,542,971 5,451,314 4,313,602 3,918,753 3,221,883 642,003 41,341 13,526 394,850 202,656 115,848 72,378 Mar. 4,852,126 5,725,891 4,447,750 4,057,413 3,309,876 694,135 43,332 10,070 390,338 203,106 111,285 71,159 Apr. 4,474,664 5,987,327 4,653,347 4,258,271 3,445,645 761,299 42,730 8,598 395,076 204,516 115,880 71,031 May 4,529,175 6,269,562 4,914,749 4,511,380 3,689,231 769,200 42,772 10,176 403,370 204,214 123,738 70,654 Jun. 4,872,602 6,614,797 5,114,629 4,702,508 3,841,176 791,929 55,773 13,630 412,121 205,541 126,808 75,119 Jul. 5,360,506 7,066,933 5,444,712 5,023,326 4,125,919 838,200 45,122 14,085 421,385 218,130 123,424 76,086 Aug. 5,842,675 7,438,953 5,733,213 5,304,242 4,374,075 865,884 46,409 17,874 428,971 209,611 137,316 78,926 Sep. 6,545,590 7,937,286 6,121,075 5,694,318 4,587,550 1,036,961 53,547 16,260 426,757 181,831 156,370 84,890 Oct. 6,963,132 8,410,464 6,577,149 6,156,118 4,999,904 1,077,282 60,886 18,046 421,031 145,157 167,893 95,384 Nov. 7,338,935 8,875,749 6,949,814 6,491,056 5,249,474 1,158,221 67,877 15,484 458,758 155,596 184,466 106,200 Dec. 9,183,376 9,484,528 7,434,662 6,908,211 5,613,756 1,176,675 83,446 34,335 526,451 177,664 227,079 114,238

1995 Jan. 9,174,302 9,852,017 7,648,708 7,118,835 5,683,097 1,303,649 81,616 50,473 529,874 179,814 223,355 120,563 Feb. 9,475,527 10,216,248 7,924,851 7,377,665 5,823,951 1,420,553 88,589 44,572 547,186 177,128 236,584 125,005 Mar. 10,169,852 10,735,346 8,196,422 7,623,476 5,910,840 1,546,974 97,320 68,342 572,946 181,619 251,915 131,194 Apr. 10,799,405 11,174,015 8,481,276 7,891,858 6,093,668 1,644,647 103,409 50,134 589,418 183,304 261,602 135,415 May 11,183,059 11,515,637 8,613,742 7,978,966 6,039,497 1,788,934 117,366 33,169 634,776 183,907 300,704 141,497 Jun. 11,872,516 11,897,657 8,832,182 8,108,348 6,091,629 1,849,264 128,142 39,313 723,834 203,524 360,422 149,262 Jul. 12,670,722 12,463,545 9,245,237 8,477,922 6,419,822 1,884,429 132,888 40,783 767,315 194,926 398,465 163,006 Aug. 13,580,077 13,117,390 9,640,111 8,808,329 6,626,931 2,008,800 134,835 37,763 831,782 186,905 448,627 173,162 Sep. 14,213,155 14,044,570 10,299,999 9,394,041 6,794,473 2,420,421 140,779 38,368 905,959 201,684 493,135 186,648 Oct. 15,390,711 14,955,259 10,859,673 9,870,618 7,070,859 2,589,826 153,117 56,816 989,055 201,612 557,820 203,244 Nov. 16,388,573 15,860,558 11,186,939 10,084,910 7,090,643 2,793,422 159,278 41,568 1,102,029 244,591 614,559 212,526 Dec. 17,399,015 16,435,380 11,575,235 10,279,170 7,267,453 2,801,363 166,451 43,903 1,296,066 314,967 712,470 226,769

1996 Jan. 17,963,785 16,779,009 11,879,084 10,566,933 6,288,307 4,074,406 163,364 40,856 1,312,151 276,880 750,997 243,610 Feb. 18,733,458 17,494,902 11,968,103 10,624,214 6,149,474 4,263,471 168,313 42,957 1,343,888 288,981 759,723 255,355 Mar. 19,340,161 18,075,336 12,323,360 10,804,457 5,423,288 5,150,402 180,140 50,626 1,518,903 298,650 911,797 261,496 Apr. 20,079,107 18,656,659 12,633,130 11,054,569 6,795,735 3,994,199 188,458 76,178 1,578,561 318,813 925,874 281,666 May 20,207,260 19,369,185 13,260,786 11,495,410 7,183,237 4,028,216 204,309 79,648 1,765,376 417,452 1,001,166 296,833 Jun. 21,521,630 19,882,599 13,361,485 11,442,907 7,156,352 3,995,714 213,426 77,414 1,918,579 462,163 1,081,290 315,744 Jul. 22,895,662 21,015,266 13,951,467 11,875,573 7,575,954 4,014,418 206,199 79,001 2,075,894 468,757 1,200,977 333,555 Aug. 23,584,739 21,517,073 14,228,289 12,031,777 7,704,315 4,046,163 201,118 80,181 2,196,512 492,861 1,277,511 348,644 Sep. 24,869,454 22,159,796 14,570,018 12,281,909 7,805,873 4,190,146 203,471 82,420 2,288,109 501,912 1,322,128 385,490 Oct. 27,275,355 23,787,264 15,498,804 13,139,140 8,207,086 4,637,535 210,806 83,714 2,359,664 511,661 1,354,020 417,269 Nov. 29,022,797 25,064,617 16,308,816 13,738,000 8,515,115 4,932,438 210,991 79,457 2,570,816 551,682 1,459,166 483,693 Dec. 31,450,022 26,841,440 16,942,968 14,156,220 8,198,624 5,648,703 227,719 81,175 2,786,748 594,121 1,576,732 534,317

1997 Jan. 36,765,213 32,168,282 16,930,845 14,108,642 8,233,064 5,574,903 232,082 68,593 2,822,203 619,424 1,573,711 542,966 Feb. 41,867,367 37,344,272 16,793,692 13,980,803 8,729,585 4,962,510 214,882 73,826 2,812,889 587,646 1,597,276 553,727 Mar. 40,298,367 35,081,532 16,582,763 13,540,722 8,514,883 4,773,505 186,826 65,508 3,042,041 552,319 1,866,726 553,264 Apr. 39,368,706 34,636,679 16,413,130 13,226,208 8,313,253 4,725,187 125,471 62,298 3,186,923 509,947 2,066,252 542,685 May 40,414,751 35,971,428 15,284,545 12,875,347 8,274,104 4,345,615 193,097 62,531 2,409,198 326,037 1,481,837 534,884 Jun. 37,697,187 36,195,679 15,590,125 13,148,763 8,306,447 4,587,234 190,836 64,246 2,441,361 327,521 1,499,257 531,797 Jul. 40,393,221 37,372,980 16,013,010 13,487,979 8,433,985 4,794,385 199,258 60,351 2,525,031 391,208 1,513,972 538,134 Aug. 41,991,059 39,668,335 16,753,861 14,145,836 8,834,055 5,048,360 189,422 73,998 2,608,026 397,205 1,573,272 558,131 Sep. 42,591,947 38,216,570 14,897,989 12,350,738 6,837,871 5,190,604 197,072 125,192 2,547,251 331,439 1,588,259 565,409 Oct. 44,722,317 39,733,240 15,791,272 13,052,272 6,909,126 5,748,750 215,612 178,784 2,739,000 331,959 1,642,255 704,336 Nov. 45,959,883 36,245,999 16,159,658 13,253,446 6,771,609 6,173,611 219,519 88,707 2,906,212 328,444 1,547,266 978,842 Dec. 47,431,996 35,900,662 16,232,369 12,853,429 6,309,747 6,169,448 258,014 116,219 3,378,940 383,986 1,639,537 1,304,190

1998 Jan. 49,348,211 38,245,741 16,998,302 13,468,823 6,043,956 6,918,636 336,414 169,817 3,529,479 469,701 1,508,703 1,337,289 Feb. 51,784,285 40,260,789 18,007,279 14,321,819 6,144,750 7,562,224 367,800 247,045 3,685,460 400,987 1,792,498 1,397,594 Mar. 54,559,216 41,319,059 18,495,720 14,682,563 6,145,139 7,871,529 365,281 300,614 3,813,157 387,560 1,877,513 1,478,162 Apr. 56,981,530 42,404,302 19,415,841 15,371,440 6,344,678 8,434,429 392,559 199,773 4,044,401 389,872 2,136,484 1,467,459 May 59,184,213 43,726,467 19,355,569 15,455,688 6,334,024 8,474,141 424,928 222,595 3,899,880 382,982 1,939,883 1,523,078 Jun. 61,185,414 45,141,131 20,003,143 15,962,510 6,493,751 8,773,657 452,565 242,537 4,040,633 386,964 2,032,637 1,566,149 Jul. 64,456,596 46,296,315 20,744,814 16,661,663 6,795,864 9,082,428 516,406 266,964 4,083,151 380,238 2,023,484 1,624,579 Aug. 66,460,534 47,782,142 21,187,659 16,984,099 6,772,652 9,365,297 567,719 278,432 4,203,560 378,706 2,065,568 1,696,259 Sep. 70,928,318 51,006,988 22,682,195 18,181,189 6,857,910 10,398,582 645,035 279,662 4,501,006 443,668 2,166,695 1,828,523 Oct. 73,953,321 53,924,555 23,818,425 19,161,872 6,868,281 11,297,557 710,654 285,380 4,656,553 416,381 2,235,709 1,926,293 Nov. 77,814,084 56,435,604 24,555,172 19,749,176 6,839,611 11,831,242 793,017 285,306 4,805,995 417,838 2,310,615 1,995,658 Dec. 81,288,969 59,086,517 24,272,609 19,351,643 6,643,899 11,463,601 896,591 347,552 4,920,967 379,858 2,438,066 2,021,030

Note: Starting December 1992, foreign banks' branches have been included. 1) Insurance companies included.

58*


18. DOMESTIC CREDIT

Period

1985 Dec.1986 Dec.1987 Dec.1988 Dec.1989 Dec.1990 Dec.1991 Dec.1992 Dec.1993 Dec.1994 Jan.






(continued) - millions of lei; end of period -CREDIT TO GOVERNMENT, NET

Convertible Total Public Unemploy- Treasury Other Other Forex General Other Othercurrency debt ment bills credits to extra- bonds Account government public

Other 1) domestic credits

benefit fund deposits

govern-ment

budgetary accounts

of State Treasury

securities deposits, net

... 12,398 –208,860 – – – – ... x x x –208,860

... 9,758 –234,998 – – – – ... x x x –234,998

... 19,640 –313,054 – – – – ... x x x –313,054

... 18,182 –358,002 – – – – ... x x x –358,002

... 20,309 –313,193 – – – – ... x x x –313,193

... 23,100 –73,748 – –4,602 – – –8,219 x x x –60,926

... 57,915 –53,872 124,070 –32,896 – – –30,511 x x x –114,535 521 213,951 –134,402 155,314 –124,819 – – –71,893 x x x –93,003

2,820 841,700 –638,367 155,172 –321,342 – – –365,410 x x x –106,787 3,058 981,169 –919,902 155,169 –335,500 – – –386,914 x x x –352,656 3,968 1,137,711 –908,343 155,166 –355,439 – – –450,053 x x x –258,017 4,787 1,278,141 –873,766 155,164 –314,483 188,990 – –564,894 x x x –338,543 3,648 1,333,980 –1,512,663 155,164 –350,207 190,574 – –597,664 x x x –910,531 4,764 1,354,813 –1,740,387 155,063 –386,103 3,168 – –428,521 x x x –1,083,995 4,653 1,500,168 –1,742,195 155,056 –373,538 35,008 – –481,604 x x x –1,077,117 3,745 1,622,221 –1,706,427 154,769 –424,885 50,688 – –513,916 x x x –973,083 3,119 1,705,740 –1,596,278 154,766 –474,308 50,781 – –651,889 x x x –675,627 3,666 1,816,210 –1,391,696 281,711 –454,983 29,413 – –762,561 x x x –485,277

12,598 1,833,315 –1,447,332 252,545 –505,997 108,201 – –732,268 x x x –569,813 12,495 1,925,935 –1,536,814 253,197 –561,811 108,850 – –764,201 x x x –572,848

7,470 2,049,867 –301,152 225,199 –460,557 142,556 – –666,734 x x x 458,384 6,142 2,203,309 –677,715 225,189 –509,799 212,886 – –778,419 x x x 172,428 8,469 2,291,398 –740,721 225,468 –534,521 212,885 – –901,062 x x x 256,508 8,217 2,538,924 –565,494 224,494 –1,066,038 676,773 – –691,593 x x x 290,870 9,097 2,692,738 –374,610 224,494 –1,093,821 677,758 – –647,126 x x x 464,085 8,668 2,901,895 –332,578 224,557 –1,131,881 677,758 363,000 –628,630 x x x 162,619

10,627 3,065,475 –25,141 196,536 –1,174,783 652,876 447,000 –659,741 x x x 512,971 10,918 3,218,308 207,177 187,541 –1,275,615 683,586 469,262 –738,427 x x x 880,831 23,088 3,477,279 462,687 186,633 –1,265,372 691,265 534,000 –822,543 x x x 1,138,704 24,491 3,744,570 168,585 186,633 –1,339,028 545,943 635,000 –1,015,109 x x x 1,155,146 26,379 4,095,587 435,451 186,633 –1,441,605 646,791 715,000 –1,155,503 x x x 1,484,135 30,353 4,673,619 528,015 186,633 –1,472,697 642,136 797,000 –1,095,610 x x x 1,470,554 41,859 4,860,145 963,635 158,883 –1,712,196 677,772 1,040,277 –1,294,693 x x x 2,093,593 40,664 4,899,925 1,184,776 158,883 –1,761,281 708,868 1,070,277 –1,383,910 x x x 2,391,940 39,829 5,526,800 1,238,556 158,883 –1,795,579 939,944 1,140,277 –1,447,146 x x x 2,242,177 46,960 5,751,975 1,264,825 158,774 –1,823,683 1,127,044 1,140,277 –1,673,686 x x x 2,336,099 52,208 6,023,529 1,422,448 158,772 –1,782,242 1,221,567 1,140,277 –1,622,380 x x x 2,306,454 49,927 6,108,398 838,076 149,928 –1,866,904 1,275,499 1,140,277 –1,848,426 x x x 1,987,702 59,382 6,521,113 1,639,032 149,928 –1,944,474 1,317,825 1,140,277 –1,644,335 x x x 2,619,811 72,605 7,063,799 1,880,396 149,928 –2,004,424 1,430,797 1,140,277 –1,869,552 x x x 3,033,370 77,496 7,288,784 2,067,666 149,936 –2,086,060 1,603,554 1,140,277 –1,882,601 320,943 x x 2,821,617 78,579 7,589,778 2,709,659 149,936 –2,164,523 1,606,638 1,140,277 –2,052,815 341,752 x x 3,688,394 76,714 8,288,460 3,488,091 149,936 –2,246,449 3,488,517 1,140,276 –2,472,020 353,890 x x 3,073,942 76,275 8,755,801 3,958,180 149,913 –2,340,865 3,494,764 1,132,000 –2,442,485 376,336 x x 3,588,517 81,578 9,898,472 4,608,582 149,913 –28,079 3,764,299 1,132,000 –1,089,323 422,868 274,793 x –17,889 86,102 15,237,437 4,596,931 149,913 –23,075 4,087,431 1,132,000 –1,171,464 621,674 –34,007 x –165,541 74,240 20,550,580 4,523,095 144,769 –20,524 4,438,389 1,132,000 –1,163,557 811,571 –254,303 x –565,251 69,731 18,498,769 5,216,835 144,769 –18,067 4,122,495 1,132,000 –1,436,931 1,257,880 191,547 x –176,859 68,039 18,223,549 4,732,028 143,619 –16,344 5,012,366 1,132,000 –1,741,233 1,275,417 –789,511 x –284,286 66,440 20,686,884 4,443,322 143,667 –14,839 5,000,143 1,132,000 –1,731,253 1,278,238 –1,180,329 x –184,305 82,786 20,605,554 1,501,508 142,001 –13,760 4,846,472 1,132,000 –4,637,393 1,263,455 –399,860 x –831,407 81,718 21,359,970 3,020,241 141,824 –12,288 4,954,731 1,132,000 –3,020,185 1,313,439 –1,096,031 x –393,250 79,418 22,914,474 2,322,724 141,824 –40,566 6,340,651 x –3,017,960 560,325 –578,486 x –1,083,065 62,145 23,318,581 4,375,377 141,824 –39,796 6,340,433 x –3,258,849 570,450 –474,537 3,374,497 –2,278,646 60,450 23,941,968 4,989,077 141,824 –39,743 3,883,072 x –2,088,190 580,425 –45 3,374,497 –862,764 51,659 20,086,341 9,713,884 141,825 –138,060 4,392,417 x –1,648,695 589,500 –1,247,892 7,874,497 –249,708 51,227 19,668,294 11,531,334 141,825 –67,995 5,752,249 x –1,918,746 601,725 –669,845 7,874,497 –182,376

213,786 21,247,439 11,102,470 305,667 –56,521 5,792,791 x –1,398,978 618,600 –770,591 7,874,497 –1,262,995 94,381 22,253,510 11,523,497 438,157 –55,587 5,674,395 x –1,401,455 607,875 –1,386,511 7,874,497 –227,875 69,923 22,823,339 13,240,157 145,972 –54,534 5,639,046 x –1,590,512 1,467,721 –328,460 8,175,926 –215,003 50,586 22,988,461 14,577,229 155,650 –53,337 6,550,169 x –1,169,304 2,305,467 –1,156,024 8,175,876 –231,268 53,938 24,370,898 15,457,746 143,564 –51,261 8,137,041 x –1,496,775 2,351,385 –1,550,444 8,175,877 –251,640 54,884 25,137,989 16,044,283 143,564 –48,893 8,822,379 x –1,483,880 2,377,054 –1,688,076 8,175,926 –253,792 54,851 25,551,501 18,160,281 143,564 –126,464 11,336,109 x –1,391,896 3,251,543 –2,978,354 8,175,925 –250,146 63,027 26,594,483 18,678,391 143,564 –123,598 11,076,002 x –1,283,856 3,330,079 –2,394,268 8,175,926 –245,458 62,120 28,324,792 19,921,330 143,564 –121,340 11,987,692 x –1,270,323 3,915,418 –2,657,344 8,175,927 –252,264 78,170 30,106,131 20,028,765 142,161 –117,136 11,940,885 x –1,319,353 4,008,199 –2,542,880 8,175,927 –259,040 81,884 31,880,432 21,378,480 139,302 –114,682 10,995,109 x –1,699,959 4,207,710 –67,810 8,175,927 –257,117 82,013 34,813,908 22,202,452 137,262 –101,340 15,096,358 x –5,372,787 4,570,380 –22,918 8,170,763 –275,268

59*


19. BROAD MONEY - end of period -

Period M2Total M1 QUASI-MONEY

Total Currency outside banks

Demand deposits 1)

Total Household savings

Time and restricted

deposits (lei)

Residents' forex deposits

bill.lei bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei %1985 Dec. 318.8 161.8 50.8 54.6 17.1 107.2 33.6 157.0 49.2 153.2 48.1 x x 3.8 1.2 1986 Dec. 344.0 172.5 50.1 59.7 17.4 112.8 32.8 171.5 49.9 167.3 48.6 x x 4.2 1.2 1987 Dec. 359.2 177.2 49.3 60.2 16.8 117.0 32.6 182.0 50.7 176.5 49.1 x x 5.5 1.5 1988 Dec. 395.9 205.8 52.0 64.6 16.3 141.2 35.7 190.1 48.0 185.6 46.9 x x 4.5 1.1 1989 Dec. 420.9 215.2 51.1 74.3 17.7 140.9 33.5 205.7 48.9 201.7 47.9 x x 4.0 0.9 1990 Dec. 514.4 217.2 48.6 92.4 18.0 157.0 30.6 297.2 51.4 249.1 48.5 x x 15.1 2.9 1991 Dec. 1,033.3 696.6 67.4 176.5 17.3 520.1 50.2 336.7 32.6 261.8 25.3 34.5 3.3 40.4 3.9 1992 Dec. 1,856.1 1,028.2 55.4 411.5 22.2 616.8 33.2 827.8 44.6 409.2 22.0 86.5 4.7 332.2 17.9 1993 Dec. 4,472.4 2,231.3 49.9 1,048.7 23.4 1,182.6 26.4 2,241.1 50.1 645.8 14.4 298.8 6.7 1,296.4 29.0 1994 Jan. 4,574.0 1,924.2 42.1 951.6 20.8 972.5 21.3 2,649.8 57.9 670.8 14.7 463.8 10.1 1,515.2 33.1

Feb. 4,934.7 2,126.6 43.1 1,088.4 22.1 1,038.2 21.0 2,808.1 56.9 725.5 14.7 470.9 9.5 1,611.7 32.7 Mar. 5,230.7 2,132.9 40.8 1,050.2 20.1 1,082.6 20.7 3,097.9 59.2 742.1 14.2 581.2 11.1 1,774.5 33.9 Apr. 5,481.1 2,277.1 41.5 1,193.9 21.8 1,083.2 19.8 3,204.0 58.5 837.0 15.3 564.0 10.3 1,802.9 32.9 May 5,774.5 2,375.3 41.1 1,250.7 21.7 1,124.6 19.5 3,399.2 58.9 977.0 16.9 643.3 11.1 1,778.9 30.8 Jun. 6,290.7 2,670.1 42.4 1,386.2 22.0 1,283.9 20.4 3,620.6 57.6 1,196.2 19.0 657.6 10.5 1,766.8 28.1 Jul. 6,929.5 2,975.9 42.9 1,643.6 23.7 1,332.4 19.2 3,953.6 57.1 1,420.3 20.5 679.9 9.8 1,853.4 26.7 Aug. 7,441.8 3,192.5 42.9 1,657.1 22.3 1,535.4 20.6 4,249.3 57.1 1,604.6 21.6 738.7 9.9 1,906.0 25.6 Sep. 8,045.5 3,320.8 41.3 1,764.0 21.9 1,556.8 19.4 4,724.7 58.7 1,774.9 22.1 874.2 10.9 2,075.6 25.8 Oct. 8,414.2 3,537.6 42.0 1,815.8 21.6 1,721.8 20.5 4,876.6 58.0 1,902.6 22.6 896.6 10.7 2,077.4 24.7 Nov. 8,974.2 3,777.7 42.1 1,907.3 21.3 1,870.4 20.8 5,196.5 57.9 2,085.9 23.2 939.9 10.5 2,170.7 24.2 Dec. 10,648.7 4,534.2 42.6 2,200.6 20.7 2,333.6 21.9 6,114.5 57.4 2,727.6 25.6 1,028.7 9.7 2,358.1 22.1

1995 Jan. 10,447.7 3,998.2 38.3 2,010.9 19.2 1,987.3 19.0 6,449.5 61.7 2,976.3 28.5 1,107.0 10.6 2,366.2 22.6 Feb. 10,565.7 3,846.9 36.4 2,053.1 19.4 1,793.8 17.0 6,718.8 63.6 3,101.7 29.4 1,182.4 11.2 2,434.6 23.0 Mar. 11,191.2 4,068.7 36.4 2,016.4 18.0 2,052.3 18.3 7,122.5 63.6 3,278.4 29.3 1,298.2 11.6 2,545.9 22.7 Apr. 11,504.6 4,241.7 36.9 2,359.0 20.5 1,882.7 16.4 7,262.9 63.1 3,385.7 29.4 1,315.6 11.4 2,561.6 22.3 May 12,037.9 4,354.7 36.2 2,256.9 18.7 2,097.8 17.4 7,683.2 63.8 3,556.5 29.5 1,424.6 11.8 2,702.1 22.4 Jun. 12,753.4 4,639.0 36.4 2,501.8 19.6 2,137.2 16.8 8,114.4 63.6 3,738.8 29.3 1,457.2 11.4 2,918.4 22.9 Jul. 13,352.2 4,990.6 37.4 2,714.2 20.3 2,276.4 17.0 8,361.6 62.6 3,932.2 29.4 1,485.6 11.1 2,943.8 22.0 Aug. 14,078.7 5,252.8 37.3 2,850.8 20.2 2,402.0 17.1 8,825.9 62.7 4,114.5 29.2 1,678.3 11.9 3,033.1 21.5 Sep. 14,622.3 5,516.3 37.7 3,086.9 21.1 2,429.5 16.6 9,105.9 62.3 4,230.1 28.9 1,698.8 11.6 3,177.0 21.7 Oct. 15,395.8 5,905.6 38.4 3,164.5 20.6 2,741.1 17.8 9,490.2 61.6 4,334.9 28.2 1,809.4 11.8 3,345.9 21.7 Nov. 16,607.2 6,249.5 37.6 3,357.3 20.2 2,892.2 17.4 10,357.8 62.4 4,443.1 26.8 1,933.6 11.6 3,981.0 24.0 Dec. 18,278.1 7,083.2 38.8 3,760.5 20.6 3,322.7 18.2 11,194.9 61.2 5,136.4 28.1 1,926.5 10.5 4,132.0 22.6




Note: Starting December 1992, foreign banks' branches have been included.1) Until December 1991, it also included corporate time deposits.

60*


20. BROAD MONEY AND DOMESTIC CREDIT DYNAMICS- monthly percentage change -

Period BROAD MONEY (M2) DOMESTIC CREDITTotal M1 Quasi-money Total Credit to non-government

Total of which: Total of which: Total of which: of which:currency lei deposits Residents' State- Private In lei Inoutside banks

Total of which: household savings

forex deposits

owned sector 1)

sector foreign currencies

1991 Dec. 28.3 35.8 6.9 15.3 20.6 6.6 –12.9 65.4 53.0 57.5 22.2 57.3 –5.3 1992 Dec. 20.6 18.5 16.6 23.2 18.4 32.7 31.2 11.6 9.7 8.5 21.0 7.4 31.8 1993 Dec. 18.7 15.5 8.8 22.0 26.8 42.9 18.7 24.3 7.6 8.0 5.3 4.6 24.8 1994 Jan. 2.3 –13.8 –9.3 18.2 20.1 3.9 16.9 –0.6 5.2 4.9 7.1 2.9 16.6

Feb. 7.9 10.5 14.4 6.0 5.4 8.2 6.4 7.2 5.7 5.5 6.5 3.3 16.0 Mar. 6.0 0.3 –3.5 10.3 10.6 2.3 10.1 6.8 5.0 4.9 5.5 3.1 12.3 Apr. 4.8 6.8 13.7 3.4 5.9 12.8 1.6 –7.8 4.6 4.0 7.7 4.6 4.4 May 5.4 4.3 4.8 6.1 15.7 16.7 –1.3 1.2 4.7 5.3 1.6 5.6 1.6 Jun. 8.9 12.4 10.8 6.5 14.4 22.4 –0.7 7.6 5.5 5.7 4.3 4.1 10.7 Jul. 10.2 11.5 18.6 9.2 13.3 18.7 4.9 10.0 6.8 7.5 3.2 6.5 8.1 Aug. 7.4 7.3 0.8 7.5 11.6 13.0 2.8 9.0 5.3 5.5 4.2 5.3 5.1 Sep. 8.1 4.0 6.4 11.2 13.0 10.6 8.9 12.0 6.7 4.7 18.0 6.8 6.5 Oct. 4.6 6.5 2.9 3.2 5.7 7.2 0.1 6.4 6.0 6.1 5.2 7.6 0.4 Nov. 6.7 6.8 5.0 6.6 8.1 9.6 4.5 5.4 5.5 5.0 8.2 5.7 5.1 Dec. 18.7 20.0 15.4 17.7 24.1 30.8 8.6 25.1 6.9 –3.0 54.7 6.8 7.0

1995 Jan. –1.9 –11.8 –8.6 5.5 8.7 9.1 0.3 –0.1 3.9 1.2 11.9 2.9 7.5 Feb. 1.1 –3.8 2.1 4.2 4.9 4.2 2.9 3.3 3.7 2.0 8.5 3.6 4.0 Mar. 5.9 5.8 –1.8 6.0 6.8 5.7 4.6 7.3 5.1 3.5 9.1 3.4 10.8 Apr. 2.8 4.3 17.0 2.0 2.7 3.3 0.6 6.2 4.1 3.4 5.7 3.5 6.1 May 4.6 2.7 –4.3 5.8 6.0 5.0 5.5 3.6 3.1 0.4 9.4 1.6 7.8 Jun. 5.9 6.5 10.8 5.6 4.3 5.1 8.0 6.2 3.3 2.0 6.2 2.5 5.6 Jul. 4.7 7.6 8.5 3.0 4.3 5.2 0.9 6.7 4.8 5.0 4.3 4.7 5.0 Aug. 5.4 5.3 5.0 5.6 6.9 4.6 3.0 7.2 5.2 4.0 7.8 4.3 8.0 Sep. 3.9 5.0 8.3 3.2 2.4 2.8 4.7 4.7 7.1 3.9 13.5 6.8 7.7 Oct. 5.3 7.1 2.5 4.2 3.6 2.5 5.3 8.3 6.5 5.1 9.1 5.4 9.4 Nov. 7.9 5.8 6.1 9.1 3.8 2.5 19.0 6.5 6.1 3.5 10.7 3.0 14.1 Dec. 10.1 13.3 12.0 8.1 10.8 15.6 3.8 6.2 3.6 3.8 3.4 3.5 4.0

1996 Jan. –0.1 –7.4 –9.6 4.5 8.1 7.9 –1.8 3.2 2.1 –11.0 24.5 2.6 0.8 Feb. 3.6 –2.8 –3.7 7.1 3.8 5.4 13.4 4.3 4.3 1.2 8.0 0.7 12.8 Mar. 2.4 0.6 0.5 3.3 3.4 3.4 3.1 3.2 3.3 –8.6 16.9 3.0 4.1 Apr. 2.3 5.1 5.8 0.9 4.0 6.5 –4.5 3.8 3.2 19.6 –11.4 2.5 4.7 May 4.3 5.0 1.1 3.9 3.7 3.6 4.3 0.6 3.8 4.0 3.5 5.0 1.4 Jun. 3.7 3.8 11.7 3.6 4.1 3.8 2.7 6.5 2.7 2.8 2.5 0.8 6.8 Jul. 5.5 6.7 0.2 4.8 4.3 3.0 5.9 6.4 5.7 7.0 4.2 4.4 8.3 Aug. 2.9 3.0 4.3 2.8 3.9 2.2 0.9 3.0 2.4 2.2 2.6 2.0 3.2 Sep. 3.8 5.3 3.9 3.0 2.1 1.9 4.6 5.4 3.0 2.1 4.0 2.4 4.1 Oct. 7.5 11.9 5.9 5.2 4.8 2.6 5.9 9.7 7.3 6.8 8.0 6.4 9.2 Nov. 6.8 6.9 7.3 6.8 3.6 3.3 12.6 6.4 5.4 1.7 9.8 5.2 5.6 Dec. 9.6 9.9 10.9 9.4 9.3 11.9 9.5 8.4 7.1 2.2 12.6 3.9 13.1

1997 Jan. 10.8 –13.0 –17.6 24.7 8.1 6.4 53.0 16.9 19.8 20.5 19.2 –0.1 53.9 Feb. 12.4 –8.5 –1.6 20.9 6.1 6.9 38.9 13.9 16.1 19.5 12.6 –0.8 34.9 Mar. 0.2 0.5 8.6 0.0 8.9 9.6 –8.1 –3.7 –6.1 –7.4 –4.6 –1.3 –10.0 Apr. 5.0 12.8 14.2 2.5 4.2 9.7 0.7 –2.3 –1.3 –1.8 –0.7 –1.0 –1.5 May 4.8 4.5 0.1 4.9 13.5 11.9 –4.9 2.7 3.9 3.7 4.1 –6.9 13.5 Jun. 5.6 12.3 17.4 3.3 6.6 8.0 –1.3 –6.7 0.6 0.1 1.2 2.0 –0.4 Jul. 8.8 8.0 6.2 9.1 9.9 5.8 7.8 7.2 3.3 2.4 4.1 2.7 3.7 Aug. 3.1 4.5 8.8 2.6 1.0 2.3 5.0 4.0 6.1 6.6 5.7 4.6 7.3 Sep. 4.5 10.3 13.8 2.3 1.3 3.3 3.8 1.4 –3.7 –9.7 2.5 –11.1 1.8 Oct. 3.4 3.2 2.0 3.4 3.4 4.0 3.4 5.0 4.0 –0.3 7.8 6.0 2.7 Nov. 5.9 2.2 4.5 7.4 4.6 4.5 11.3 2.8 –8.8 –24.2 4.0 2.3 –16.1 Dec. 10.2 20.2 3.3 6.4 11.2 13.9 0.0 3.2 –1.0 –3.9 0.8 0.4 –2.1

1998 Jan. –3.0 –19.1 –7.6 3.9 5.2 3.1 2.1 4.0 6.5 –0.5 10.6 4.7 8.0 Feb. 2.6 3.1 1.7 2.5 4.4 5.3 –0.5 4.9 5.3 –7.3 11.8 5.9 4.7 Mar. 3.2 –1.6 –5.2 4.8 2.6 2.4 8.3 5.4 2.6 –0.7 4.1 2.7 2.6 Apr. 1.7 1.9 11.1 1.6 4.6 4.3 –2.9 4.4 2.6 –3.2 5.0 5.0 0.7 May 3.1 2.9 4.6 3.1 3.2 4.5 2.9 3.9 3.1 0.7 4.0 –0.3 6.0 Jun. 3.9 7.3 8.1 2.8 2.4 3.0 3.4 3.4 3.2 –2.1 5.2 3.3 3.1 Jul. 2.2 0.6 1.3 2.7 2.6 2.6 2.9 5.3 2.6 2.1 2.7 3.7 1.6 Aug. 2.5 2.9 3.2 2.4 1.9 2.2 3.4 3.1 3.2 2.2 3.6 2.1 4.1 Sep. 3.1 4.1 4.3 2.8 2.9 1.0 2.7 6.7 6.7 1.8 8.4 7.1 6.5 Oct. 2.0 –2.4 –0.5 3.5 3.5 2.6 3.4 4.3 5.7 1.2 7.1 5.0 6.3 Nov. 3.4 3.1 –0.7 3.5 3.6 3.4 3.4 5.2 4.7 2.4 5.3 3.1 5.9 Dec. 16.8 17.9 3.8 16.5 8.8 9.7 28.7 4.5 4.7 1.8 5.5 –1.2 9.2

Percentage change versus the end of previous year1991 100.9 220.7 91.1 13.3 18.9 5.1 167.5 116.5 101.1 87.5 612.3 99.3 150.7 1992 79.6 47.6 133.1 145.9 67.3 56.3 721.7 34.6 39.1 37.3 –31.6 29.0 269.4 1993 141.0 117.0 154.9 170.7 90.6 57.8 290.3 139.7 156.3 141.3 285.9 139.0 293.4 1994 138.1 103.2 109.8 172.8 297.7 322.4 81.9 115.4 93.5 72.5 207.4 83.1 143.5 1995 71.6 56.2 70.9 83.1 88.0 88.3 75.2 89.5 73.3 45.1 159.1 55.7 137.1 1996 66.0 57.7 43.1 71.2 71.0 71.5 71.5 80.8 63.3 30.5 119.1 46.4 103.7 1997 104.9 67.6 70.9 126.6 113.1 128.9 149.6 50.8 33.8 –2.8 70.9 –4.2 98.7 1998 48.9 18.0 25.3 62.2 56.3 53.6 70.8 71.4 64.6 –2.0 103.0 49.5 77.0

1) Until December 1994, convertible currency credits to non-government were included in the state-owned sector only.

61*


21. REFINANCING FROM THE NATIONAL BANK OF ROMANIA- daily averages -

Period Structural credit 1)

Preferential credit 2)

Auction credit Special credit 3)

Lombard credit 4)

Credit with a derogation

Non-directed structural

credit

Credits granted

according to Law 135/1996

Total Litigious debtors 5)

bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei bill.lei1992 Dec. 89.0 25.4 255.4 72.8 4.8 1.4 – x 1.6 0.5 x x x x x x 350.8 x 1993 Dec. 474.0 30.8 306.9 19.9 572.9 37.2 – x 187.5 12.2 x x x x x x 1,541.3 x 1994 Jan. 712.6 41.2 137.4 7.9 601.0 34.7 – x 279.7 16.2 x x x x x x 1,730.7 x

Feb. 792.1 43.2 125.1 6.8 610.0 33.2 – x 308.4 16.8 x x x x x x 1,835.6 x Mar. 950.3 49.1 113.2 5.8 600.3 31.0 – x 272.3 14.1 x x x x x x 1,936.1 x Apr. 986.0 51.7 113.3 5.9 728.1 38.2 18.0 0.9 61.4 3.2 x x x x x x 1,906.8 x May 1,161.5 56.0 113.4 5.5 789.0 38.1 – x 8.7 0.4 x x x x x x 2,072.6 x Jun. 1,033.5 52.6 113.4 5.8 817.0 41.6 0.4 0.0 1.2 0.1 x x x x x x 1,965.5 x Jul. 1,224.5 58.1 113.4 5.4 770.0 36.5 – x – x x x x x x x 2,107.9 x Aug. 1,419.3 62.2 113.4 5.0 748.1 32.8 – x 0.2 0.0 x x x x x x 2,281.0 x Sep. 1,338.8 62.6 112.7 5.3 686.5 32.1 1.5 0.1 – x x x x x x x 2,139.5 x Oct. 1,367.1 61.4 87.4 3.9 771.0 34.6 – x – x x x x x x x 2,225.5 x Nov. 1,375.2 58.6 77.2 3.3 896.1 38.2 – x – x x x x x x x 2,348.5 x Dec. 1,516.8 63.1 76.0 3.2 801.4 33.4 7.1 0.3 1.4 0.1 x x x x x x 2,402.7 x

1995 Jan. 1,417.3 63.9 60.4 2.7 729.8 32.9 3.6 0.2 8.5 0.4 x x x x x x 2,219.6 x Feb. 1,235.3 56.1 60.4 2.7 832.9 37.8 29.0 1.3 43.3 2.0 x x x x x x 2,200.9 x Mar. 1,250.0 55.6 60.4 2.7 872.6 38.8 65.0 2.9 1.1 0.0 x x x x x x 2,249.1 x Apr. 1,256.7 61.2 60.4 2.9 733.7 35.7 1.8 0.1 0.5 0.0 x x x x x x 2,053.1 x May 1,230.0 59.9 60.4 2.9 747.4 36.4 16.0 0.8 0.9 0.0 x x x x x x 2,054.7 x Jun. 1,160.4 55.6 59.6 2.9 811.0 38.9 26.6 1.3 29.7 1.4 x x x x x x 2,087.3 x Jul. 1,043.3 46.8 35.2 1.6 925.2 41.5 84.6 3.8 141.5 6.3 x x x x x x 2,229.8 x Aug. 1,237.8 52.3 34.9 1.5 865.6 36.5 32.4 1.4 197.8 8.4 x x x x x x 2,368.5 x Sep. 1,134.3 43.9 34.9 1.3 974.8 37.7 208.6 8.1 232.6 9.0 x x x x x x 2,585.2 x Oct. 1,367.9 47.6 34.9 1.2 1,053.9 36.7 80.1 2.8 338.0 11.8 x x x x x x 2,874.8 x Nov. 1,692.9 50.6 34.5 1.0 889.7 26.6 476.2 14.2 252.9 7.6 x x x x x x 3,346.2 x Dec. 1,670.8 46.9 31.2 0.9 824.8 23.1 815.4 22.9 222.8 6.2 x x x x x x 3,565.0 x

1996 Jan. 1,505.3 40.9 8.4 0.2 946.2 25.7 1,028.1 27.9 191.5 5.2 x x x x x x 3,679.5 x Feb. 1,502.6 41.5 8.4 0.2 950.9 26.2 952.0 26.3 209.7 5.8 x x x x x x 3,623.6 x Mar. 1,455.8 40.0 7.9 0.2 926.3 25.5 1,152.2 31.7 93.9 2.6 x x x x x x 3,636.1 x Apr. 1,539.2 38.6 7.1 0.2 832.8 20.9 1,488.5 37.3 48.2 1.2 71.6 1.8 x x x x 3,987.4 x May 1,278.7 29.6 7.1 0.2 591.8 13.7 1,619.1 37.5 156.4 3.6 662.2 15.3 x x x x 4,315.3 x Jun. 1,060.5 24.4 7.1 0.2 358.5 8.3 1,715.4 39.5 260.2 6.0 935.7 21.6 x x x x 4,337.4 x Jul. 1,071.8 22.7 7.1 0.2 467.1 9.9 516.9 11.0 1,646.9 34.9 1,003.3 21.3 x x x x 4,713.0 x Aug. 969.2 31.6 6.4 0.2 388.1 12.7 137.0 4.5 – x 1,566.5 51.1 x x x x 3,067.2 1,866.0 Sep. 755.4 23.7 6.2 0.2 429.2 13.4 – x 5.4 0.2 1,995.1 62.5 x x x x 3,191.3 1,866.0 Oct. 1,016.2 24.6 5.8 0.1 1,090.2 26.4 15.7 0.4 – x 1,994.7 48.4 x x x x 4,122.6 1,866.0 Nov. 1,978.4 39.9 5.4 0.1 1,354.8 27.3 55.7 1.1 – x 1,564.9 31.6 x x x x 4,959.2 1,871.3 Dec. 2,643.1 48.6 5.0 0.1 1,547.3 28.4 63.7 1.2 1.0 0.0 1,180.5 21.7 x x x x 5,440.6 1,871.3

1997 Jan. 2,659.6 51.9 4.6 0.1 1,415.4 27.6 16.3 0.3 0.7 0.0 1,026.1 20.0 x x x x 5,122.7 1,871.3 Feb. 2,635.9 60.8 4.4 0.1 563.4 13.0 – x 166.6 3.8 962.0 22.2 2.9 0.1 3.7 0.1 4,338.9 1,873.6 Mar. 2,303.9 56.9 4.3 0.1 530.3 13.1 – x 32.6 0.8 896.4 22.1 231.0 5.7 52.0 1.3 4,050.5 1,874.7 Apr. 1,940.2 59.2 4.0 0.1 166.5 5.1 – x 13.2 0.4 832.2 25.4 268.3 8.2 52.0 1.6 3,276.4 1,884.5 May 1,459.1 59.9 3.6 0.1 – x – x 0.2 0.0 753.5 30.9 169.4 6.9 52.0 2.1 2,437.8 1,884.5 Jun. 1,285.1 62.5 3.5 0.2 – x – x – x 715.0 34.8 – x 52.0 2.5 2,055.6 1,884.5 Jul. 1,089.6 59.8 3.3 0.2 – x – x 2.5 0.1 676.1 37.1 – x 52.0 2.9 1,823.5 1,884.5 Aug. 740.5 50.8 3.2 0.2 – x – x 1.3 0.1 660.7 45.3 – x 52.0 3.6 1,457.7 1,884.5 Sep. 359.3 33.4 3.1 0.3 – x – x 0.3 0.0 660.7 61.4 – x 52.0 4.8 1,075.4 1,884.5 Oct. 55.2 6.9 2.4 0.3 – x 38.3 4.8 0.1 0.0 650.8 81.5 – x 52.0 6.5 798.8 1,884.5 Nov. 14.7 0.9 2.2 0.1 – x 914.3 57.5 0.7 0.0 605.9 38.1 – x 52.0 3.3 1,589.8 1,884.5 Dec. – x 1.8 0.2 – x – x 93.8 12.7 592.7 80.1 – x 52.0 7.0 740.3 1,884.5

1998 Jan. – x 1.5 0.2 – x – x 40.4 6.0 577.2 86.0 – x 52.0 7.7 671.1 1,884.5 Feb. – x 1.4 0.2 – x – x 28.1 4.4 562.1 87.3 – x 52.0 8.1 643.6 1,884.5 Mar. – x 1.3 0.2 – x – x 0.4 0.1 547.7 91.1 – x 52.0 8.6 601.4 1,884.5 Apr. – x 1.2 0.2 – x – x 0.4 0.1 532.6 90.9 – x 52.0 8.9 586.2 1,884.5 May – x 1.0 0.2 – x – x – x 512.4 90.6 – x 52.0 9.2 565.4 1,884.5 Jun. – x 0.9 0.2 – x – x – x 503.1 90.5 – x 52.0 9.4 556.1 1,884.5 Jul. – x 0.9 0.2 – x – x – x 503.1 90.5 – x 52.0 9.4 556.0 1,884.5 Aug. – x 0.9 0.2 – x – x – x 503.1 90.5 – x 52.0 9.4 556.0 1,893.6 Sep. – x 0.8 0.1 – x – x – x 503.1 90.5 – x 52.0 9.4 555.9 1,895.7 Oct. – x 0.7 0.1 – x – x – x 503.1 90.5 – x 52.0 9.4 555.9 1,895.7 Nov. – x 0.6 0.1 – x – x – x 503.1 90.5 – x 52.0 9.4 555.8 1,895.7 Dec. – x 0.5 0.1 – x – x – x 503.1 90.6 – x 52.0 9.4 555.6 1,912.6

1994 1,156.5 55.6 108.0 5.2 734.9 35.3 2.3 0.1 77.8 3.7 x x x x x x 2,079.4 x 1995 1,308.1 52.6 47.3 1.9 855.1 34.4 153.3 6.2 122.5 4.9 x x x x x x 2,486.2 x 1996 1,398.0 34.2 6.8 0.2 823.6 20.1 728.7 17.8 217.8 5.3 914.5 22.4 x x x x 4,089.4 778.4 1997 1,211.9 50.6 3.4 0.1 223.0 9.3 80.7 3.4 26.0 1.1 752.7 31.4 56.0 2.3 43.6 1.8 2,397.3 1,881.7 1998 – x 1.0 0.2 – x – x 5.8 1.0 521.2 89.9 – x 52.0 9.0 579.9 1,890.4

Note: Percentage as weight of total1) Credit lines until 31 July 1995; 2) Special credit until 31 July 1995; Credits extended at interest rate lower than the refinancing interest rateor credits on which the interest is not encashed at least once a month; 3) Fixed term credit until 31 July 1995; 4) Overdraft credit until 31 July1995; 5) Refinancing credits granted and guarantees paid by the NBR in the name of Dacia Felix and Credit Bank.

62*


22. RESERVE MONEY

Period Vault cash (bill. lei)

Currency outside banks(bill. lei)

Banks' deposits with NBR (bill. lei)

Reserve money(bill. lei)

Reserve money multiplier (m1)

Reserve money multiplier (m2)

daily average e.o.p.1) daily average e.o.p.1) daily average e.o.p.1) daily average e.o.p.1) average e.o.p.1) average e.o.p.1)1992 Dec. 40.1 48.6 396.4 411.5 113.0 142.2 549.5 602.2 1.75 1.71 3.12 3.08 1993 Dec. 89.3 75.3 1,021.3 1,048.7 170.1 168.0 1,280.7 1,292.1 1.64 1.64 3.23 3.38 1994 Jan. 122.7 126.5 986.5 951.6 206.1 177.5 1,315.3 1,255.6 1.57 1.62 3.43 3.73

Feb. 120.0 108.9 1,000.1 1,088.4 260.3 176.8 1,380.4 1,374.1 1.45 1.52 3.43 3.57 Mar. 59.9 121.4 1,080.6 1,050.2 274.8 336.4 1,415.3 1,508.0 1.51 1.40 3.60 3.45 Apr. 44.0 112.2 1,112.1 1,193.9 280.0 271.9 1,436.1 1,578.1 1.53 1.44 3.72 3.47 May 58.0 139.8 1,236.7 1,250.7 291.3 126.9 1,586.0 1,517.4 1.48 1.55 3.56 3.79 Jun. 65.9 125.6 1,335.0 1,386.2 296.3 146.3 1,697.2 1,658.1 1.50 1.56 3.56 3.75 Jul. 61.0 103.0 1,530.1 1,643.6 306.6 194.5 1,897.7 1,941.0 1.50 1.52 3.49 3.56 Aug. 78.7 142.0 1,668.9 1,657.1 370.5 200.1 2,118.1 1,999.2 1.46 1.55 3.40 3.67 Sep. 70.7 131.0 1,722.9 1,764.0 353.8 188.7 2,147.4 2,083.7 1.52 1.59 3.61 3.86 Oct. 69.8 170.9 1,820.9 1,815.8 378.3 328.4 2,269.0 2,315.2 1.53 1.49 3.64 3.60 Nov. 80.3 161.0 1,868.7 1,907.3 402.1 242.1 2,351.1 2,310.3 1.56 1.60 3.70 3.85 Dec. 97.1 197.2 2,145.6 2,200.6 441.7 847.7 2,684.4 3,245.4 1.58 1.33 3.69 3.21

1995 Jan. 107.8 229.3 2,114.5 2,010.9 516.0 294.1 2,738.3 2,534.3 1.56 1.65 3.86 4.19 Feb. 105.7 218.7 2,012.1 2,053.1 386.4 515.0 2,504.2 2,786.8 1.56 1.42 4.19 3.83 Mar. 108.1 214.8 2,048.8 2,016.4 607.1 419.2 2,764.0 2,650.5 1.44 1.49 3.94 4.17 Apr. 105.3 235.9 2,207.8 2,359.0 520.9 422.7 2,834.0 3,017.5 1.47 1.43 4.01 3.84 May 118.8 233.0 2,298.3 2,256.9 496.1 348.7 2,913.2 2,838.6 1.47 1.50 4.04 4.20 Jun. 114.0 208.0 2,383.6 2,501.8 485.7 387.2 2,983.3 3,097.0 1.51 1.49 4.16 4.11 Jul. 127.8 209.0 2,636.5 2,714.2 438.7 309.1 3,203.0 3,232.3 1.51 1.52 4.08 4.11 Aug. 136.6 140.6 2,837.1 2,850.8 487.7 308.4 3,461.4 3,299.9 1.50 1.57 3.98 4.25 Sep. 132.0 128.2 2,982.6 3,086.9 461.5 477.6 3,576.1 3,692.7 1.51 1.49 4.02 3.96 Oct. 137.1 166.8 3,173.4 3,164.5 561.2 544.1 3,871.7 3,875.5 1.49 1.48 3.89 3.93 Nov. 149.6 163.2 3,291.0 3,357.3 833.4 590.0 4,274.0 4,110.4 1.43 1.50 3.75 4.02 Dec. 145.6 190.9 3,638.6 3,760.5 808.0 739.5 4,592.2 4,690.8 1.47 1.46 3.82 3.85

1996 Jan. 161.5 168.2 3,588.6 3,398.5 929.3 678.8 4,679.4 4,245.6 1.46 1.56 3.91 4.32 Feb. 150.8 153.2 3,373.4 3,273.9 925.6 727.0 4,449.8 4,154.2 1.46 1.54 4.18 4.56 Mar. 146.8 157.8 3,300.8 3,291.3 1,073.8 863.4 4,521.4 4,312.5 1.42 1.49 4.24 4.49 Apr. 158.0 194.6 3,462.2 3,483.2 1,128.7 689.0 4,748.9 4,366.9 1.40 1.53 4.14 4.52 May 169.9 174.3 3,556.3 3,520.0 1,161.2 1,092.2 4,887.4 4,786.6 1.42 1.45 4.15 4.28 Jun. 161.4 172.4 3,705.6 3,931.6 1,124.5 886.2 4,991.5 4,990.1 1.44 1.49 4.21 4.30 Jul. 158.1 191.8 3,930.3 3,940.3 1,228.9 761.2 5,317.3 4,893.2 1.43 1.55 4.14 4.56 Aug. 165.6 185.3 4,118.3 4,108.9 1,167.6 806.9 5,451.5 5,101.2 1.48 1.58 4.22 4.55 Sep. 169.9 248.6 4,178.0 4,271.0 1,268.0 954.8 5,615.9 5,474.4 1.47 1.53 4.21 4.38 Oct. 172.0 204.5 4,424.5 4,524.6 1,309.2 997.5 5,905.7 5,726.5 1.53 1.60 4.24 4.46 Nov. 195.3 238.6 4,730.7 4,854.0 1,403.6 993.3 6,329.6 6,085.8 1.56 1.64 4.24 4.52 Dec. 297.7 519.7 5,216.8 5,382.7 1,590.2 1,974.9 7,104.7 7,877.3 1.52 1.39 4.10 3.82

1997 Jan. 319.1 257.6 4,944.4 4,435.4 1,668.3 759.6 6,931.8 5,452.6 1.51 1.78 4.61 6.17 Feb. 231.7 298.7 4,457.1 4,365.2 1,189.5 1,150.7 5,878.3 5,814.7 1.59 1.53 6.08 6.50 Mar. 257.7 384.1 4,727.9 4,741.1 1,751.0 1,312.7 6,736.6 6,438.0 1.35 1.39 5.62 5.88 Apr. 270.3 374.9 5,255.1 5,415.1 1,486.9 632.9 7,012.3 6,422.9 1.38 1.57 5.53 6.19 May 294.9 341.2 5,568.3 5,421.3 1,528.3 1,314.1 7,391.5 7,076.6 1.42 1.49 5.51 5.88 Jun. 298.8 475.4 5,997.1 6,362.8 1,595.5 615.6 7,891.5 7,453.8 1.43 1.59 5.42 5.90 Jul. 315.9 380.9 6,772.1 6,755.1 2,708.5 757.5 9,796.4 7,893.5 1.28 1.62 4.68 6.06 Aug. 320.6 357.9 7,246.9 7,347.4 2,879.6 4,204.5 10,447.2 11,909.9 1.27 1.12 4.65 4.14 Sep. 380.6 465.4 7,932.7 8,359.1 2,886.8 1,087.3 11,200.1 9,911.7 1.26 1.49 4.50 5.20 Oct. 378.3 404.6 8,675.6 8,523.4 2,884.2 3,696.6 11,938.1 12,624.6 1.28 1.21 4.39 4.22 Nov. 422.5 458.4 8,827.6 8,903.4 2,881.0 2,401.9 12,131.1 11,763.6 1.28 1.32 4.52 4.79 Dec. 479.7 426.8 9,700.0 9,200.1 2,789.8 960.1 12,969.5 10,587.0 1.37 1.77 4.57 5.87

1998 Jan. 432.8 457.8 9,053.3 8,503.7 2,819.5 2,480.7 12,305.5 11,442.1 1.39 1.32 4.97 5.27 Feb. 418.0 450.2 8,558.1 8,647.3 4,000.9 3,490.2 12,976.9 12,587.7 1.18 1.24 4.70 4.91 Mar. 443.2 547.2 8,625.1 8,198.3 4,284.5 4,313.6 13,352.8 13,059.2 1.18 1.18 4.70 4.89 Apr. 462.2 564.2 9,224.7 9,105.6 4,445.5 5,237.1 14,132.4 14,906.9 1.14 1.05 4.55 4.35 May 511.1 571.7 9,593.7 9,526.2 4,525.1 1,555.3 14,629.9 11,653.2 1.11 1.38 4.50 5.74 Jun. 489.3 587.8 10,043.9 10,300.1 4,600.0 4,876.4 15,133.1 15,764.2 1.11 1.10 4.50 4.41 Jul. 506.7 531.7 10,753.2 10,431.9 4,710.9 3,739.5 15,970.8 14,703.1 1.11 1.18 4.40 4.83 Aug. 517.0 740.2 10,955.4 10,766.3 6,409.7 6,609.1 17,882.1 18,115.6 1.01 0.99 4.02 4.02 Sep. 547.3 633.8 11,186.6 11,230.6 6,487.4 6,697.2 18,221.2 18,561.5 1.01 1.00 4.06 4.04 Oct. 579.7 612.2 11,513.9 11,180.0 6,858.9 6,334.1 18,952.6 18,126.3 0.99 1.00 4.00 4.22 Nov. 604.7 871.7 11,199.2 11,098.5 6,847.2 6,964.2 18,651.0 18,934.4 0.99 0.99 4.18 4.18 Dec. 705.7 771.7 12,089.1 11,525.0 6,560.0 6,793.4 19,354.7 19,090.1 1.10 1.16 4.44 4.85

1993 49.8 75.3 633.3 1,048.7 177.9 168.0 861.0 1,292.1 1.70 1.64 3.22 3.38 1994 77.3 197.2 1,459.0 2,200.6 321.8 847.7 1,858.2 3,245.4 1.52 1.33 3.57 3.21 1995 124.0 190.9 2,635.4 3,760.5 550.2 739.5 3,309.6 4,690.8 1.49 1.46 3.98 3.85 1996 175.6 519.7 3,965.5 5,382.7 1,192.5 1,974.9 5,333.6 7,877.3 1.47 1.39 4.16 3.82 1997 330.8 426.8 6,675.4 9,200.1 2,187.5 960.1 9,193.7 10,587.0 1.37 1.77 5.01 5.87 1998 518.1 771.7 10,233.0 11,525.0 5,212.5 6,793.4 15,963.6 19,090.1 1.11 1.16 4.42 4.85

1) end of period.

63*


23. CURRENCY ISSUE COMPOSITION BY DENOMINATION- end of period -

Coin

Coin Leu 1 Leu 3 Leu 5 Leu 10 Leu 20 Leu 50 Leu 100 Leu 500 Total

bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei %

1989 0.4 22.9 0.4 24.9 0.3 14.8 0.6 37.5 – x – x – x – x – – 1.7 100.0

1990 0.4 19.5 0.5 23.0 0.3 12.8 0.9 42.6 0.0 2.1 – x – x – x – – 2.0 100.0

1991 0.4 9.3 0.5 11.0 0.3 6.1 0.9 21.6 0.4 9.7 0.4 10.7 0.9 21.9 0.4 9.7 – – 4.2 100.0

1992 0.4 3.5 0.5 4.5 0.3 2.3 0.9 8.4 0.8 6.9 1.3 11.8 3.1 28.1 3.9 34.5 – – 11.2 100.0

1993 0.4 2.0 0.5 2.7 0.3 1.3 1.0 5.1 1.0 4.8 1.8 9.1 4.9 24.5 10.1 50.6 – – 20.0 100.0

1994 0.4 1.4 0.6 2.0 0.3 0.9 0.5 1.9 1.1 4.0 2.4 8.6 7.0 24.4 16.3 57.0 – – 28.6 100.0

1995 0.4 0.9 0.6 1.3 0.3 0.6 0.6 1.5 1.4 3.4 2.6 6.3 8.9 21.3 27.1 64.6 – – 42.0 100.0

1996 0.4 0.9 0.6 1.3 0.3 0.6 0.7 1.5 1.4 3.2 2.8 6.2 9.2 20.3 30.0 66.1 – – 45.3 100.0

1997 – x 0.1 0.2 – x 0.7 1.5 1.4 3.1 2.8 6.0 9.4 20.1 32.2 69.0 – – 46.6 100.0

1998 – x 0.1 0.2 – x 0.7 1.5 1.4 3.1 2.8 6.0 9.4 20.0 32.7 69.3 – – 47.2 100.0

- end of period -

BanknoteLeu 50 and

lessLeu 100 Leu 200 Leu 500 Leu 1,000 Leu 5,000 Leu 10,000 Leu 50,000 Leu 100,000 Total

bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei % bill.lei %

1989 6.0 8.2 67.5 91.8 – x – x – x – x – x – x – x 73.5 100.0

1990 5.8 6.1 90.2 93.9 – x – x – x – x – x – x – x 96.0 100.0

1991 5.8 3.0 90.1 47.3 – x 35.1 18.4 59.4 31.2 – x – x – x – x 190.3 100.0

1992 1.6 0.4 41.3 9.2 1.4 0.3 88.1 19.5 157.4 34.9 160.7 35.7 – x – x – x 450.5 100.0

1993 0.1 0.0 4.5 0.4 1.8 0.2 94.4 8.5 192.1 17.4 812.9 73.5 – x – x – x 1,105.8 100.0

1994 – – 2.6 0.1 0.8 0.0 85.7 3.6 209.5 8.8 1,108.5 46.8 963.5 40.6 – x – x 2,370.6 100.0

1995 – – – x 0.4 0.0 94.5 2.4 249.0 6.4 1,281.0 32.8 2,285.8 58.4 – x – x 3,910.7 100.0

1996 – – – x – x 88.1 1.5 183.4 3.1 1,196.0 20.4 3,693.9 63.0 699.1 11.9 – x 5,860.4 100.0

1997 – – – x – x 82.3 0.9 84.3 0.9 915.9 9.6 3,186.5 33.2 5,314.8 55.5 – x 9,583.9 100.0

1998 – – – x – x 73.2 0.6 79.2 0.6 459.4 3.7 2,458.3 20.1 5,704.0 46.5 3,484.6 28.4 12,258.8 100.0

- end of period -

Coin Banknote Total

bill.lei % bill.lei % bill.lei %

1989 1.7 2.3 73.5 97.7 75.2 100.0

1990 2.0 2.0 96.0 98.0 98.0 100.0

1991 4.2 2.2 190.3 97.8 194.5 100.0

1992 11.2 2.4 450.5 97.6 461.7 100.0

1993 20.0 1.8 1,105.8 98.2 1,125.8 100.0

1994 28.6 1.2 2,370.6 98.8 2,399.2 100.0

1995 42.0 1.1 3,910.7 98.9 3,952.7 100.0

1996 45.3 0.8 5,860.4 99.2 5,905.7 100.0

1997 46.6 0.5 9,583.9 99.5 9,630.5 100.0

1998 47.2 0.4 12,258.8 99.6 12,306.0 100.0

64*


24a. AGGREGATE SURVEY OF CREDITSCLASSIFIED BY BANKS

- billions of lei -31-Dec-94 31-Dec-95 31-Dec-96 31-Dec-97 31-Dec-98 *

1. Credits granted, total (gross) 9,385.3 18,453.4 26,743.7 40,084.8 61,317.6

Standard 3,349.0 3,096.4 2,969.2 5,464.4 8,361.8

Watch 2,794.2 4,973.1 7,397.0 8,546.6 10,598.2

Substandard 1,101.6 2,591.1 4,878.9 4,998.8 8,771.1

Doubtful 1,114.3 2,528.8 2,690.4 3,982.8 5,141.5

Loss 1,026.2 5,264.0 8,808.2 17,092.3 28,445.1

2. Guarantees and collateral, total 7,856.4 13,203.9 19,478.2 26,101.0 38,633.3

3. Credits granted, total (net) 1,529.1 5,249.5 7,265.5 13,983.8 22,684.3

Standard 403.8 526.9 585.7 943.6 2,326.7

Watch 447.2 1,403.0 1,248.5 1,629.3 1,616.8

Substandard 184.2 664.8 1,119.9 1,018.3 1,344.5

Doubtful 172.3 635.3 793.1 1,122.3 1,125.5

Loss 321.6 2,019.5 3,518.2 9,270.5 16,270.8 Note: The indicator ''Credits granted, total (gross)'' includes outstanding interest on which bankscalculated risk provisions according to Government Decision No.335/1995*) Excluding "Banca Dacia Felix" and "Credit Bank"

- billions of lei -31-Dec-94 31-Dec-95 31-Dec-96 31-Dec-97 31-Dec-98 *

1. Risk provisions required, total 474.4 2,550.0 4,218.2 10,001.1 17,183.2

Watch 22.5 70.2 63.5 81.5 80.8

Substandard 37.0 133.2 228.5 203.7 268.9

Doubtful 89.5 317.7 404.0 561.2 562.7

Loss 325.4 2,028.9 3,522.2 9,154.7 16,270.8

2. Actual risk provisions, total 130.9 1,785.0 2,513.6 7,312.8 12,391.6

Watch 5.1 38.0 114.1 96.5 101.3

Substandard 13.6 72.6 152.7 272.3 217.6

Doubtful 17.6 252.7 389.3 541.8 466.9

Loss 94.7 1,421.7 1,857.5 6,402.2 11,605.8

*) Excluding "Banca Dacia Felix" and "Credit Bank"

24c. SOLVENCY RATIO

- percent -31-Dec-95 31-Dec-96 31-Dec-97 31-Dec-98 *

Aggregate solvency ratio 13.8 13.3 13.63 12.54

*) Excluding "Banca Dacia Felix" and "Credit Bank"

RISK PROVISIONS24b. AGGREGATE SURVEY OF BANKS'

65*


25. NUMISMATIC COINS AND MEDALSISSUED BY THE NATIONAL BANK OF ROMANIA

No. Issue Year Face Content Quality Mintage

value (pieces)

Coins

1. The 50th Anniversary of FAO - 1995 1995 100 lei Ag 925‰ – 30,00010 lei steel plated fine 100,000

with nickel finishing10 lei steel plated – 100,000

with nickel2. European Football Championship 1996 100 lei Ag 925 ‰ proof 11,500

England 1996 10 lei steel plated – 50,000with nickel

3. Olympic Games, Atlanta 1996 1996 100 lei Ag 925 ‰ proof 19,600– Olympic Games Centennial 10 lei steel plated – 50,000

(Wind Surfing, Rowing, with nickelSwimming, Yachting, Canoe)

4. World FAO Summit 1996 100 lei Ag 925 ‰ proof 5,000Rome 1996 10 lei steel plated fine 50,000

with nickel finishing5. The 50th Anniversary of UNICEF 1997 100 lei Ag 925‰ proof 5,000

6. Winter Olympic Games 1998 100 lei Ag 925‰ proof 15,000Nagano, 1998

(Skating, Bobleigh, Slalom)7. World football championship 1998 100 lei Ag 925‰ proof 5,000

8. The 150th Anniversary of the 1998 500 lei Gold 900‰ proof 2,000

1848 Romanian Revolution 1000 lei Gold 999‰ proof 1,000

9. The 80th Anniversary of the 1998 1000 lei Gold 999‰ proof 1,500Union of Transylvania with Romaniaon 1 December 1918

10. The 120th Anniversary of 1998 100 lei Ag 925‰ proof 1,500Romania's Independence

11. Commemoration of the Metropolitan 1998 100 lei Ag 925‰ proof 1,000Bishop Andrei ªagunawho died 125 years ago

Medals

1. The 115th Anniversary 1995 – Ag 916 ‰ proof 5,000of the National Bank of Romania – 8,000

2. Inauguration of the NBR's Museum 1997 – Ag 925 ‰ proof 3,000(May 4, 1997) patina fine 3,000

tombac finishing

66*

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