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October 24, 2021

BNR posts losses of RON 1.25 bln for 2013

The National Bank of Romania last year registered a net loss of RON 1.25 bln from monetary market operations and the re-evaluation of foreign currency reserves, reads the annual report made public by the Central Bank, with more than half of it being covered by statutory reserves. The loss of RON 1.258 bn suffered in 2013 was covered, in a first phase, from statutory reserves (RON 502.23 M) and the sum of RON 756 M remains to be covered, which was reported and will be covered from future profits, Mediafax informs.
“The negative financial result registered by the National Bank of Romania in 2013 reflects the influence of two factors. The first of these refers to assuming the costs implied by achieving the fundamental goal regarding the stability of prices and securing an adequate level of the state’s foreign currency reserves, with benefits for the stability of the exchange rate of the national currency, for the financial stability and external credibility, reflected in more advantageous financing conditions for the Romanian state and local companies,” reads the report. The second factor of influence mentioned by BNR is the accounting treatment of difference resulting from the re-evaluation of assets and liabilities in foreign currency, as the international standards applicable to central banks, also assumed by BNR, stipulate that favourable differences must be registered in the special re-evaluation account, while the unfavourable ones must be registered as losses.
Official sources said that the loss uncovered by reserves was already recovered from the profits made by BNR in the first part of this year.

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