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December 6, 2022

BNR’s forex reserves dropped to EUR 31 bln in August

The National Bank of Romania’s (BNR) forex reserves dropped from EUR 32.141 bln at the end of July to EUR 30.954 bln in August, after paying to the IMF the first tranche of the stand-by agreement reached in 2009. Inflows of EUR 1.142 bln were registered in August, representing changes in the foreign exchange reserve requirements of the credit institutions, inflows into the European Commission’s account, inflows into the Ministry of Public Finance’s accounts, income from the management of foreign exchange reserves and so on, the BNR shows in a communiqué.
Outflows totaled EUR 2.329 bln, representing interest and principal payments on foreign currency public debt (including the amount of EUR equivalent 728.62 million representing the payment of the first principal installment and interest on Romania’s Stand-by Arrangement with the International Monetary Fund on August 6th), changes in the foreign exchange reserve requirements of the credit institutions, the aforementioned source shows.
Likewise, the gold reserve remained steady at 103.7 tons. Given the developments in international prices, its value totaled EUR 4.398 bln. Romania’s international reserves (forex plus gold reserves) stood at EUR 35.352 bln on August 31, 2012, compared to EUR 36.554 bln on July 31. The payments due on public and publicly-guaranteed forex-denominated debt total EUR 132.25 M in September.
Emergency plans: Setting up of bridge bank and avoiding promulgation of personal bankruptcy law
The bridge bank will eventually be set up in Romania, early October being the deadline given by the IMF, the draft letter of intent that will be sent to the IMF Board shows, HotNews.ro informs. The details will be agreed with the IMF and the EC by the end of October 2012, the document shows. The institution led by Mugur Isarescu will come up in the following period with detailed emergency plans for any contingencies. “The Romanian banking sector maintains its capital reserves at good levels, but continues to be vulnerable to the Euro Area crisis’s secondary effects. (…) Bad credits continued to grow up to a level of 16.8 per cent in June, compared to 14.3 per cent at the end of 2011, against the backdrop of the economic environment’s deterioration. The banks’ profitableness remains low, the banks registering losses in the first half of the year mainly as a result of higher provisions. The banking sector’s capitalization remained strong, at 14.7 per cent at the end of June, although with some discrepancies between banks. The interbank market remains fragmented and the financing on the deposits segment has become more heterogeneous,” the draft letter reads.
Central Bank set no lending caps to banks at yesterday’s repo auction
The National Bank of Romania (BNR) did not set lending caps to banks at the repo auction yesterday, after it capped lending to RON 6, 5, and 4 bln respectively at the previous three such operations, Mediafax reports. According to dealers, the RON partially benefited during the past couple of weeks from the BNR’s decision to cap lendings, given the slight rise in interest practiced by banks. Also, BNR yesterday lent RON 12.96 bln (2.8 bln euro) to ten banks via repo operations.

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