Non-residents deposit 3.6bn euros in local banks

Medium and long-term deposits made by foreign clients with local banks reached an all time high in March, almost 3.6 billion euros, NBR data can reveal. After a 250 million-euro decline in February, deposits made by non-residents leapt almost 20% in the first month of spring. The previous peak was reached in November (3.37 billion euros), but at the end of last year there was a decline in the amount of money invested by foreigners on the domestic market, after more people were put-off by risky market conditions. Speculative players take positions over very short terms, so medium and long-term offers could be complex products local banks use to get funding from foreign shareholders, says Ciprian Dascalu, Millennium Bank trader. The medium and long-term deposits made by non-residents increased 120% in March against the corresponding period last year. NBR estimates the banks paid 166 million-euro interests on these deposits in the first three months of the year. In comparison, the interest paid for the entire of 2007 stood at 250 million euros.