The National Bank had quite a slow year in 2002, financially speaking, as it witnessed a slump in revenues due to the decline in the interests on its deposits abroad and to the reduction in NBR’s domestic portfolio.
The 10.576.5bn ROL ($320 million) loss registered in late last year was covered from positive net revaluation differences so that the bank ended the year even. The loss redoubled in real terms from 2001. National Bank’s biggest expenses – 17,081.3bn ROL, i.e. 78.7% of the total, were generated by monetary policy operations carried out to help the Government curb inflation and stimulate sustainable economic growth. The foreign currency reserves were consolidated, as well.
“The central bank’s room to manoeuvre in order to contain spending was limited to the 5.9% in operating expenses,” the NBR 2002 Report sent to the Parliament this week shows.
The National Bank’s positive net revaluation differences amount to 25,634.5bn ROL, 10,576.5bn ROL of which were used to cover the losses. As for revenues, the sharpest decline was registered for interests and other foreign currency-derived revenues. The interests in foreign currency dropped to 1,171.6bn ROL last year from the 8,905.5bn ROL in 2001.
“The decline in the yield of the instruments in which NBR invests abroad, caused by the short-term interest rate cut from 1.75% to 1.25% operated by FED and by the Central European Bank’s benchmark rate cut from 3.25% to 2.75% has practically offset the positive influence of the substantial increase in the State’s international reserves on the central bank’s revenues. Furthermore, the rise in the price of gold as a reserve asset in times of uncertainty materialised in a decrease in the interests on the respective deposits,” the annual report shows.
Out of the total gold reserve of NBR, 61.3 tonnes (58.2%) were placed abroad in form of interest bearing deposits with top commercial banks.
cristian.hostiuc@zf.ro