BNR might keep key interest rate unchanged at 3.5 pc


Foreign exchange reserves in a high trend in April.

The National Bank of Romania (BNR) might keep the monetary policy interest rate unchanged at 3.5 percent per annum at the next sitting of the institution’s Board of Directors dedicated to monetary policy issues, scheduled for May 6, show the views expressed by the participants in an internal poll conducted within the Romanian Association of Financial – Banking Analysts (AAFBR), Agerpres reports.
‘The estimates of the analysts who participated in the poll indicate an interest rate of 3.5 per cent per annum at both the horizon of December 2014, and December 2015. Estimates for December 2015 vary between a minimum of 3 percent and a maximum of 4 per cent,’ reads the AAFBR release, Agerpres reports. According to the polled experts, the reserve requirements for liabilities in domestic ‘lei’ could be maintained at 12 per cent this May. The National Bank of Romania may subsequently decide to reduce this share to 10 percent by the end of 2014 and to 8 per cent, respectively, by the end of 2015. Estimates for December 2015 range from a minimum of 6 per cent to a maximum of 12 per cent.
‘The reserves requirements for foreign currency liabilities could be maintained at 18 per cent in May. The National Bank of Romania may subsequently decide to reduce this share to 16 percent by the end of 2014 and 14 per cent, respectively, by the end of 2015. Estimates for December 2015 vary between a minimum of 12 per cent and a maximum of 18 per cent,’ reads the AAFBR release.
Overdue debts in RON up 3 pc, down 2.6 pc in foreign currencies
The total value of the household and corporate overdue debts denominated in the national currency in March 2014 amounted to RON 13.386 billion, nearly 3 per cent above the February figure, while for credits in foreign currencies the trend has been opposite, with overdue debts down 2.6 per cent, a National Bank of Romania (BNR) report shows.
Also, on April 30, 2014, National Bank of Romania’s foreign exchange reserves stood at EUR 32,440 million, compared to EUR 31,276 million on March 31, 2014. The gold stock remained unchanged at 103.7 tonnes. However, following the change in the international price of gold, its value amounted to EUR 3,117 million. The international reserves of Romania (foreign currencies and gold) on April 30th 2014 stood at EUR 35,557 million, compared to EUR 34,410 million on March 31st 2014. During the month of May 2014, the payments due on public and publicly guaranteed foreign currency denominated debt amount to approximately EUR 2,370 million.

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