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Romanian National Bank - Financial Accounts - 1998 - 2008.


The main relations between the institutional sectors of Romania's economy, as reflected by the financial accounts for 1998-2008, are synthetically illustrated in the table below; net borrowing (-) of some institutional sectors is covered from net lending (+) of other domestic sectors, whereas the difference is covered by the external sector "Rest of the world" (S.2).

financial accounts (table)

A sector's net lending/borrowing is illustrated by the balance on the financial account, the last account in the sequence of accounts used by the national accounting system to describe economic performance. The financial account shows the financing sources of institutional sectors, the form of financing and the indebtedness of these sectors or, on the contrary, where and how they may invest their surplus.

Balances of financial accounts of institutional sectors (chart)

One of the key financing instruments of institutional sectors is the issue of debt securities under "Securities other than shares" (AF.3.). Across the national economy, "General government" (S.13) is the main issuer of securities with various maturities (government securities), which frequently resorts to such financing means; banks and non-financial corporations issue bonds to a lesser extent. Moreover, institutional units belonging to the external sector raise funds by issuing debt securities to be purchased by investors on the Romanian market.

Issues of securities other than shares (chart)

Most debt securities were purchased by resident financial investors (banks, insurance corporations, investment funds) and resident non-financial investors which jointly held 97 percent of total debt securities issued in 2008, the remainder being accounted for by non-resident investors.

Holdings of securities other than shares (chart)

Loans are another financing instrument classified in the national accounting under AF.4. Most loans, regardless of their origin (either resident institutional sectors or external sector), were channelled towards the non-government, non-financial sector of the national economy; this classification includes households and non-financial corporations.The analysis of data on loan developments reveals the following: (a) the share of loans to non-government, non-financial customers in the loan stock increased steadily over the past few years, from 64 percent in 2001 to approximately 90 percent in 2008; (b) the share of long-term loans in the loan stock also posted a steady rise during the period under review, especially household loans (to more than 90 percent in 2008 from 56 percent in 1998); (c) the share of household loans in total lending to the non-government, non-financial sector climbed to 30 percent in 2008 from 3.6 percent in 1998.

Loan developments (chart)

Currency and deposits accounted for 20.2 percent of financing resources of the economy in 2008. Over the past two years, this item witnessed a downward trend, amid the decrease in the volume of deposits. As for currency, households took the most part of currency in circulation, followed by non-financial corporations.

Currency holdings by institutional sector (chart)

In 2008, institutional units saw their capitalisation declining in the period under review, both in terms of absolute value and as a percentage in total financing resources. The weight of "Shares and other equity" (AF.5) in total financing resources narrowed by 10 percentage points year on year to reach 22 percent in 2008. Over the period, the loans taken by other institutional units saw their weight in total financing resources of the economy widening to 26.8 percent in 2008 from 20.9 percent in 2007.


FINANCIAL ACCOUNTS OF ROMANIA IN 2008Non-financial corporations (S11) Other monetary financial institutions (S122)Other financial intermediaries (S123) Financial auxiliaries (S124) Insurance corporations and pension funds (S125)General government (S13)Households (S14) Non-profit institutions serving households (S15)Rest of the world (S2)Financial Accounts of Economy (annual series, 1998-2008) Financial Accounts of Institutional Sectors (tables, 1998-2008)Methodological Notes

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Publication:Romanian Central Bank News
Date:May 31, 2010
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