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NATIONAL BANK OF ROMANIA
NATIONAL BANK OF ROMANIA
1
CONTENTS

Recent Macroeconomic Developments………….....…………3

Inflation Developments and Outlook ……..………….....……..7

Monetary Policy and Policy Mix …………………........……...22

Real Sector Developments …………………….………….......28

External Sector ………………………………………….….……34

Exchange Rate Regime ………………………………………...41

Fiscal Position ……………………………………………..….…56

Monetary Data ……………………………………………….......59

Financial System …………………………………….….…..…..71

Euro Adoption ………………………………….…….…….…....76
 Economic Relations with the USA ………….……....…..84
NATIONAL BANK OF ROMANIA
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Recent Macroeconomic Developments
NATIONAL BANK OF ROMANIA
3
Recent Macroeconomic Developments (1)
 CPI inflation:
Annual rate:
6.57% (Dec. 2007/Dec. 2006)
7.26% (Jan. 2008 /Jan. 2007)
Average annual rate:
4.84% in 2007
5.11% :(Feb. 2007-Jan. 2008)/( Feb. 2006-Jan. 2007)
 GDP growth:
2006: 7.9% based on increases in final consumption by 9.3% (private
consumption grew 11.4%) and in investment by 19.3%
Jan.-Sep. 2007: 5.8% based on increases in final consumption by 9.7%
(private consumption grew 9.9%) and in investment by 25.3%
 Current account deficit:
2006: EUR 10.2 bn., up 47.4% yoy; (10.4% of GDP); 86% covered by FDI
2007: EUR 16.9 bn., up 66.1% yoy; (14.4% of GDP); 42% covered by FDI
 Foreign Direct Investment:
2006: EUR 8.7 bn., up 66.6% yoy
2007: EUR 7 bn., down 19% yoy
NATIONAL BANK OF ROMANIA
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Recent Macroeconomic Developments (2)
 Fiscal balance (IMF Methodology):
2006: -1.5% of GDP
2007 (preliminary data): -2.4% of projected GDP
 International reserves (foreign currency including gold):
2007: EUR 27.2 bn.; forex reserves EUR 25.3 bn.
January 31, 2008: EUR 27.6 bn.;
forex reserves EUR 25.6 bn. (covering about 4.8 months of prospective
goods-and-services imports)
 Financial intermediation
2007 forecast: 37.9% of GDP
 Real growth of loans to the private sector
2007: 50.5% (RON: 30.6% foreign currency: 72.6%)
NATIONAL BANK OF ROMANIA
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Macroeconomic Developments
in Selected Central and East European Countries
Real GDP change
percent
Annual average inflation rate*
percent
2004 2005 2006 2007f
2004
2005
2006
2007
Current account deficit
percent of GDP
2004
2005
2006
2007f
Bulgaria
6.6
6.2
6.1
6.3
6.1
5
7.3
8.4
-6.6
-12.0
-15.7
-21.5
Czech Rep.
4.5
6.4
6.4
5.8
2.8
1.9
2.5
2.8
-5.4
-1.8
-3.3
-3.1
Estonia
8.3
10.2
11.2
7.8
3.0
4.1
4.4
6.6
-12.3
-10.0
-15.5
-14.6
Hungary
4.8
4.1
3.9
1.4
6.8
3.6
3.9
8.0
-8.4
-6.8
-6.6
-4.4
Latvia
8.7
10.6
11.9
10.5
6.2
6.7
6.6
10.1
-12.9
-12.5
-22.3
-22.8
Lithuania
7.3
7.9
7.7
8.5
1.2
2.7
3.7
5.7
-7.7
-7.2
-10.8
-13.3
Poland
5.3
3.6
6.1
6.5
3.5
2.1
1.0
2.5
-4.2
-1.6
-3.2
-3.7
Slovakia
5.2
6.6
8.5
8.7
7.5
2.7
4.5
2.8
-3.4
-8.4
-8.2
-4.4
Slovenia
4.4
4.1
5.7
6.0
3.6
2.5
2.5
3.6
-2.7
-2.0
-2.8
-3.5
Romania
8.5
4.2
7.9
6.1
11.9
9.0
6.6
4.8
-8.4
-8.7
-10.4
-14.4
*) based on CPI
f) forecast
Source: websites of central banks, National Institute of Statistics (for Romania), European Commission
NATIONAL BANK OF ROMANIA
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Inflation Developments and Outlook
NATIONAL BANK OF ROMANIA
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50
Inflation Rate
percent
45.7
45
40
target (Dec./Dec.)
40.7
actual (average)
35
34.5
30
30.3
actual (Dec./Dec.)
25
22.5
20
17.8
15
15.3
14.1
11.9
10
9.3
9.0
8.6
6.56
4.87
6.57
4.84
7.5
±1pp
5
±1pp
4
±1pp
5
0
27
25
22
14
2000
2001
2002
2003
9
3.8
±1pp
3.5
±1pp
2004
2005
2006
2007
2008
2009
(Feb. 2007-Jan. 2008)/( Feb. 2006-Jan. 2007): 5.11%
January 2008 (yoy): 7.26%
Source: National Institute of Statistics, National Bank of Romania
NATIONAL BANK OF ROMANIA
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Inflation Developments
annual percentage change
12
10
8
6
4
Target 2005
7.5
Target 2006
5.0
2
0
Dec.05
Dec.06
Target 2007
4.0
Dec.07
Target 2008
3.8
Target 2009
3.5
Dec.08
Dec.09
Note: ±1 percentage points around the (dis)inflation path
Source: National Institute of Statistics, National Bank of Romania
NATIONAL BANK OF ROMANIA
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Inflation Rate
percent
10
9
8
7
6
5
4
annual average inflation rate
3
annual inflation rate
2
monthly inflation rate
1
0
Jan.08
Dec.07
Nov.07
Oct.07
Sep.07
Aug.07
Jul.07
Jun.07
May.07
Apr.07
Mar.07
Feb.07
Jan.07
Dec.06
Nov.06
Oct.06
Sep.06
Aug.06
Jul.06
Jun.06
May.06
Apr.06
Mar.06
Feb.06
Jan.06
-1
Source: National Institute of Statistics, National Bank of Romania calculations
NATIONAL BANK OF ROMANIA
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Inflation Rate and Changes in Administered and Volatile Prices
18
annual percentage change
16
14
12
10
8
6
inflation rate
4
2
administered prices
0
volatile prices*
-2
-4
Dec.07
Oct.07
Aug.07
Jun.07
Apr.07
Feb.07
Dec.06
Oct.06
Aug.06
Jun.06
Apr.06
Feb.06
Dec.05
Oct.05
Aug.05
Jun.05
Apr.05
Feb.05
Dec.04
-6
*) products with volatile prices: vegetables, fruit, eggs, fuels
Source: National Institute of Statistics, National Bank of Romania calculations
NATIONAL BANK OF ROMANIA
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Headline Inflation and CORE Inflation
11
annual percentage change
CPI (total)
10
CORE1 (CPI – administered prices)
9
CORE2 (CORE1 – volatile prices*)
8
adjusted CORE2**
7
6
5
4
3
Dec.07
Sep.07
Jun.07
Mar.07
Dec.06
Sep.06
Jun.06
Mar.06
Dec.05
Sep.05
Jun.05
Mar.05
Dec.04
2
*) products with volatile prices: vegetables, fruit, eggs, fuels
**) the influence of excise duties and vice tax is removed
Source: National Institute of Statistics, National Bank of Romania calculations
NATIONAL BANK OF ROMANIA
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Sources of Inflationary Pressures
12
annual percentage change
annual percentage change; (+) depreciation/(-) appreciation
12
8
8
4
4
0
0
-4
-4
fuels
-8
-8
food
inflation rate
-12
-12
exchange rate (RON/EUR; right-side scale)
Jan.08
Nov.07
Sep.07
Jul.07
May.07
Mar.07
Jan.07
Nov.06
Sep.06
Jul.06
May.06
Mar.06
-16
Jan.06
-16
Source: National Institute of Statistics, National Bank of Romania
NATIONAL BANK OF ROMANIA
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Food Price Inflation – Major Cause
for Overshooting Inflation Targets Worldwide
– December 2007 –
annual percentage change
Inflation
target
Latin America
Argentina
Brazil*
Chile*
Colombia*
Mexico*
Venezuela
Asia
China
Hong Kong
Indonesia*
Taiwan
Central and Eastern Europe
Czech Republic*
Hungary*
Poland*
Russia
Slovakia*
Turkey*
Romania
Total
inflation
Overshooting of the
upper limit of the
variation band (pp)
Food price
inflation
7.7-11.0
4.5(+/-2.0)
3.0(+/-1.0)
3.5-4.5
3.0(+/-1.0)
12.0-14.0
8.5
4.5
7.8
5.7
3.8
22.5
8.6
10.8
15.2
8.5
6.0
30.9
2.3
1.5
5.0-7.0
1.5
6.91)
3.8
6.6
3.3
18.21)
11.7
11.3
7.6
+4.6
+2.3
3.0(+/-1.0)
3.0
2.5(+/-1.0)
6.5-8.0
below 2.0
4.0(+/-2.0)
4.0(+/-1.0)
5.4
7.4
4.0
11.9
3.4
8.4
6.6
11.2
13.1
7.9
…
7.7
12.0
9.1
+1.4
+4.4
+0.5
+3.9
+1.4
+2.4
+1.6
Euro area
below 2.0
* countries that adopted inflation targeting
1) November 2007
Source: JP Morgan, Eurostat, national institutes of statistics
3.1
4.8
+1.1
+3.8
+1.2
+8.5
+1.8
NATIONAL BANK OF ROMANIA
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Annual Inflation Rate*
in Selected Central and East European Countries
(Dec./Dec.)
percent
16
10
2007
2005
14
9
12
8
8
10
6
8
3
6
2
5
6
1
5
7
2
Latvia
Bulgaria
Estonia
Lithuania
Hungary
Czech Rep.
Poland
Slovakia
Romania
Latvia
Bulgaria
Slovenia
Czech Rep.
Poland
0
Slovakia
1
Lithuania
2
3
4
Estonia
4
Hungary
7
4
Romania
9
Slovenia
10
*) based on CPI
Source: websites of central banks, National Institute of Statistics
NATIONAL BANK OF ROMANIA
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Tradables and Non-tradables* Prices
annual change (%)
40
tradables (goods)
non-tradables (mainly services and goods with administered prices)
30
20
10
Dec.07
Sep.07
Jun.07
Mar.07
Dec.06
Sep.06
Jun.06
Mar.06
Dec.05
Sep.05
Jun.05
Mar.05
Dec.04
Sep.04
Jun.04
Mar.04
Dec.03
Sep.03
Jun.03
Mar.03
Dec.02
Sep.02
Jun.02
Mar.02
0
*) based on COICOP
Source: Eurostat; National Bank of Romania calculations
NATIONAL BANK OF ROMANIA
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- Bank Survey Conducted
by the
Inflation Expectations
of Banks
forNBR
the- Next:
12 months
6
24 months
percentage points
percent
6 6
percentage points
percent
6
5
5 5
5
4
4 4
4
3
3 3
deviation (right-side scale)
expected annual inflation rate
2
3
deviation (right-side scale)
expected annual inflation rate
2 2
annual inflation target
2
annual inflation target
Jan.08
Nov.07
Sep.07
Jul.07
May.07
Mar.07
Jan.07
Nov.06
Sep.06
Jan.08
Nov.07
Sep.07
Jul.07
0
May.07
0 0
Mar.07
0
Jan.07
1
Nov.06
1 1
Sep.06
1
Source: survey conducted by the NBR
NATIONAL BANK OF ROMANIA
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Inflation Forecast
10
annual percentage change
annual inflation rate*
target band**
target
8
Inflation targets (Dec./Dec.)
2008: 3.8%
2009: 3.5%
6
4
2
2007
2008
2009
III
IV
I
II
III
IV
I
*) projection based on consumer basket composition for 2007
**) ±1 percentage points around the (dis)inflation path
Note: according to the February 2008 Inflation Report
II
III
IV
Source: National Institute of Statistics, National Bank of Romania calculations
NATIONAL BANK OF ROMANIA
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Potential Causes for Deviation of Inflation Rate
from the Projected Path
 Wage increases overtaking productivity gains
 Protraction or even worsening of the wage-productivity mismatch might lead
to a dangerous wage-inflation spiral
 Implementing a looser budget policy, specific to an election year
 Failure to achieve the planned dynamics of budget revenues and making
unforeseen public expenditures
 Financing current expenditures to the detriment of capital expenditures
 Faster deterioration of inflation expectations
 Higher oil prices
 Further increase in the oil price is a plausible scenario on international
markets
 Good agricultural year
 Boosted by a favourable base effect, the larger-than-expected increase in
agricultural output (the projection assumes an average agricultural year for
2008) would have a sizable impact on food prices
The Government’s commitment on:
 Wage increases in line with productivity gains
 Narrowing of the budget deficit
 Improvement of public spending structure
NATIONAL BANK OF ROMANIA
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Consequences of Risks
Associated with the Projection Materialising
 Nature of risks and uncertainties associated with the
current medium-term projection is generally similar to the
previous one (November 2007)
HOWEVER
 In the event of upside risks to inflation materialising –
especially if occurring simultaneously, this could have
more severe consequences given the tensions in the
international and domestic environments
 The effects of the fiscal easing which in the previous years had
allowed companies to absorb cost-related shocks without their
having a major impact on inflation have faded
 External financing will be available at higher costs, at least
for a period of time
NATIONAL BANK OF ROMANIA
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Maintenance of Inflation Targets
for 2008 and 2009
 Even though annual inflation rate is projected to exceed
the upper limit of the annual variation band until 2009
Q1, the NBR has chosen to tighten its monetary
policy stance instead of revising inflation targets
 Over a period marred by numerous uncertainties and
exogenous shocks, it is of the essence to:
 Bring inflation as fast as possible back to the announced
medium-term disinflation trajectory
 Ensure the sustainability of disinflation by avoiding a wider
current account deficit
NATIONAL BANK OF ROMANIA
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Monetary Policy and Policy Mix
NATIONAL BANK OF ROMANIA
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Decisions of the NBR Board
 To raise the monetary policy rate three times in the last 4 months (by 0.5
pp in November 2007, by 0.5 pp in January 2008, and by 1 pp in February
2008) to 9.0 percent p.a., from 7.0 percent
 Proactive measures substantiated by:
– worsening of the short-term inflation outlook
– need for efficient anchoring of inflation expectations
– boost in saving by ensuring a real positive interest rate, considering the need to
reduce the savings/investment imbalance, aimed at correcting the external deficit
 To continue to pursue a firm management of money market liquidity via
open-market operations
 Ensure efficient transmission of the monetary policy signal
 Contain the volatility of short-term money market rates
 To adopt additional prudential measures, including higher provisioning for
foreign exchange-denominated loans to unhedged borrowers
 To leave unchanged the existing minimum reserve requirement ratios on
both RON- and foreign currency-denominated liabilities of credit
institutions
NATIONAL BANK OF ROMANIA
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Prudential Measures Adopted
in the NBR Board Meeting of February 2008
 Separate recognition of the currency risk effects assumed
by borrowers, natural entities, through additional
provisioning of foreign currency-denominated loans to
unhedged borrowers (individuals who do not earn
incomes in the loan denomination currency)
 Lenders must submit to the NBR their amended internal
lending norms, within 30 days from publication of the new
provisions in the Official Gazette, so that they comply with
the recently adopted requirements
NATIONAL BANK OF ROMANIA
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Economic Policy Mix and Macro-stability (1)
 The economic policy mix is more important than any of its
components

 A restrictive monetary policy can offset only partly the lack
of support from budget and fiscal policies and income policy
in attaining the price stability objective:

Usually, over the short term

By taking the risk of persistent distortions, whose subsequent correction
by the authorities is costly and lengthy, a spontaneous correction could
be massive and disorderly

 The outcome is suboptimal in terms of real convergence in the
medium and long term
NATIONAL BANK OF ROMANIA
25
Economic Policy Mix and Macro-stability (2)
The economic policy mix needs to be reconsidered
all the more so as:

Turbulence on world markets is persistent

The increasing international prices of agri-food items, energy
and gold fuelled inflation

Romania’s external deficit has widened to unsustainable levels
 need for gradual correction (to avoid disorderly correction)

Domestic currency appreciation is unlikely to be a major
contributor to disinflation

Wage pressures will remain high in the context
of EU integration
NATIONAL BANK OF ROMANIA
26
Optimal Economic Policy Mix
 Continuation of structural reforms so as to boost the
growth of productivity and external competitiveness of
Romanian products
 High monetary policy restrictiveness
 Tighter-than-expected fiscal policy, likely to help narrowing
macroeconomic imbalances
 Containment of public spending growth and its channelling
mainly towards public investment meant to foster the production
potential of the economy
 Improved budget planning by approving multiannual budgets and
ensuring a uniform and predictable budget execution
 An income policy matching productivity gains
NATIONAL BANK OF ROMANIA
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Real Sector Developments
NATIONAL BANK OF ROMANIA
28
Real GDP
annual percentage change
8.5
7.9
6.1
5.7
5.1
5.2
4.2
2.1
2000
2001
2002
2003
2004
2005
Source: National Institute of Statistics; National Commission of Prognosis
2006
2007*
*) forecast
Jan.-Sep. 2007: 5.8%
NATIONAL BANK OF ROMANIA
29
Gross Fixed Capital Formation
and Actual Household Final Consumption
(GDP component)
25.3
annual percentage change
gross fixed capital formation
19.3
actual household final consumption
12.8
12.7
11.4
11.1
10.1
8.6
8.2
6.8
5.5
9.9
9.4
8.3
4.8
0.2
2000
2001
2002
2003
2004
2005
Source: National Institute of Statistics
2006
2007
Jan.-Sep.
NATIONAL BANK OF ROMANIA
30
GDP by Source
Contribution of Main Supply
Components to GDP Growth
percent
industry
25.8
percentage points
25.1
2.0
7.0
5.8
6.7
agriculture
and forestry
1.4
0.3
7.4
2.0
1.0
construction
49.1
49.5
services
3.7
3.4
others
12.2
11.4
GDP Growth:
2006 Jan.-Sep.:
2007 Jan.-Sep.:
7.8%
5.8%
-1.3
GDP Growth:
2006 Jan.-Sep.:
2007 Jan.-Sep.:
7.8%
5.8%
Source: National Institute of Statistics, National Bank of Romania calculations
NATIONAL BANK OF ROMANIA
31
GDP by Expenditure
percent
Contribution of Main Demand
Components to GDP Growth
percentage points
change in stocks
7.8
78.6
79.0
9.2
9.0
23.5
27.5
-10.9
–0.3
-14.9
–0.6
GDP Growth:
2006 Jan.-Sep.:
7.8%
2007 Jan.-Sep.:
5.8%
9.5
actual final
consumption of
households
0.7
0.2
5.9
3.3
actual final
consumption of
general
government
gross fixed
capital formation
-4.7
-8.5
net exports
GDP Growth:
2006 Jan.-Sep.:
7.8%
2007 Jan.-Sep.:
5.8%
Source: National Institute of Statistics, National Bank of Romania calculations
NATIONAL BANK OF ROMANIA
32
Industrial Output
annual percentage change
8.3
7.2
7.1
5.4
5.3
4.3
3.1
2.0
2000
2001
2002
2003
2004
2005
2006
2007
Source: National Institute of Statistics
NATIONAL BANK OF ROMANIA
33
External Sector
NATIONAL BANK OF ROMANIA
34
Current Account Balance/GDP
percent
-3.3
-5.8
-8.4
-8.7
-10.4
2002
2003*
2004*
2005*
2006*
-14.4
2007
forecast
*) including reinvested earnings
Source: National Institute of Statistics; National Bank of Romania
NATIONAL BANK OF ROMANIA
35
Trade Balance
5,000
4,500
(monthly data)
EUR million
exports fob
imports fob
EUR million
5,000
4,500
trade balance
4,000
4,000
3,500
3,500
3,000
3,000
2,500
2,500
2,000
2,000
1,500
1,500
1,000
1,000
500
500
0
0
-500
-500
-1,000
-1,000
-1,500
-1,500
-2,000
-2,000
2002
2003
2004
2005
2006
2007
In 2007, yoy growth of exports and imports was 13.7% and 24.9% respectively.
Source: National Institute of Statistics
NATIONAL BANK OF ROMANIA
36
15
EUR billion
Current Account Deficit Financing via FDI
10
5
0.8
(0.6% forecast GDP)
8.7
(8.9% GDP)
7.1
(6.0% forecast GDP)
0
-5
-10
-15
-10.2
(10.4% GDP)
-0.03
(0.03% GDP)
-16.9
(14.4% forecast
GDP)
capital transfers
foreign direct investment
current account balance
-20
2006
2007
Current account financing via FDI (including capital transfers) amounted to 46.4% in 2007 vs 85.6% in 2006.
In 2007, net FDI decreased by 19% yoy.
Source: National Bank of Romania
NATIONAL BANK OF ROMANIA
37
Gross International Reserves
30
28
Gross Official Reserves
EUR billion
EUR billion
banks' foreign exchange
reserves
26
24
NBR foreign exchange
reserves
gold
NBR foreign exchange
reserves
22
20
30
28
26
24
22
20
gold
18
16
14
12
18
16
14
12
6
4
10
8
6
4
2
0
2
0
2007
2008*
2006
2005
2004
2003
2002
2007
2006
2005
2004
2003
2002
10
8
*) 31 Jan.
Source: National Bank of Romania
NATIONAL BANK OF ROMANIA
38
Reserves and Debt Indicators
months
12
official foreign exchange reserves - months of goods-and-services imports
10
official reserves - months of goods-and-services imports
public and publicly guaranteed debt - months of goods-and-services exports
8
6.4
6.3
6.3
6
5.2
4.2
4
3.5
4.1
3.4
5.5
6.4
6.0
5.9
5.8
5.6
5.1
4.8
4.8
5.2
4.1
3.4
2
0
2002
2003
2004
2005
2006
2007
Note: For 2008, calculations based on prospective imports of goods and services
Source: National Bank of Romania, Ministry of Economy and Finance
2008*
*) 31 Jan.
NATIONAL BANK OF ROMANIA
39
Total External Debt
60
MLT External Debt
EUR billion
EUR billion
55
ST debt
(majority private debt)
50
MLT debt
public and publicly guaranteed
debt
private debt
20.9
45
55
50
45
deposits of non-residents
40
40
35
12.6
35
10.4
30
6.5
25
3.2
2.0
3.6 4.7
0.05 0.1
5.6
0.2
6.0
0.2
7.9
0.4
0.9
1.0
3.2
2005
2006
2007
2007
2006
2005
2004
2003
2002
2001
2000
9.2
7.6
0
9.7
8.9
2004
18.3
15.0 15.9
13.7
11.3
23.1
10.0
2003
0.8
28.6
2002
24.6
2001
5
1.1
1.2
2000
15
20
11.3
36.7
12.4
30
25
10.8
20
10
60
15
10
16.8
5
0
Source: National Bank of Romania, Ministry of Economy and Finance
NATIONAL BANK OF ROMANIA
40
Exchange Rate Regime
NATIONAL BANK OF ROMANIA
41
Liberalization of International Flows
 1998: Current account operations (Art. VIII of IMF Articles
of Agreement)
 1999: Medium- and long-term capital inflows
 2001-2002: Capital flows with low impact on the balance
of payments
 2003-2004: Capital flows with significant impact
on the real sector
 2005-2006: Capital flows with significant impact
on the balance of payments
 September 2006: Full convertibility of the national currency
NATIONAL BANK OF ROMANIA
42
Exchange Rate:
implications of full convertibility
 Full convertibility of the RON renders monetary policy
conduct difficult
 Massive inflows of speculative capital put downward
pressure on the exchange rate of the RON
 Support disinflation in the short term
BUT
 Imply risks to financial stability
 great likelihood of a reversal in speculative flows
 keener interest in forex borrowings  increase in external
indebtedness of domestic companies, particularly in the
short term  currency risk overexposure
 Foster excess demand
NATIONAL BANK OF ROMANIA
43
Nominal Exchange Rate
(daily data)
RON/EUR
2.7
2.9
3.1
3.3
NBR's decision to pursue
a more flexible exchange rate
3.5
3.7
3.9
4.1
Jan.08
Oct.07
Jul.07
Apr.07
Jan.07
Oct.06
Jul.06
Apr.06
Jan.06
Oct.05
Jul.05
Apr.05
Jan.05
Oct.04
Jul.04
Apr.04
Jan.04
Oct.03
Jul.03
Apr.03
Jan.03
Oct.02
Jul.02
Apr.02
Jan.02
4.3
Source: National Bank of Romania
NATIONAL BANK OF ROMANIA
44
Real Exchange Rate of the RON against the EUR
Appreciation (+)/Depreciation (–)
170
monthly averages
index, 2000 = 100
based on CPI differential between Romania and Euro area
160
160
based on PPI differential between Romania and Euro area
150
170
150
based on ULC in industry
Jan.08
Sep.07
May.07
Jan.07
Sep.06
May.06
Jan.06
70
Sep.05
70
May.05
80
Jan.05
80
Sep.04
90
May.04
90
Jan.04
100
Sep.03
100
May.03
110
Jan.03
110
Sep.02
120
May.02
120
Jan.02
130
Sep.01
130
May.01
140
Jan.01
140
Source: National Bank of Romania calculations, National Institute of Statistics, International Financial Statistics
NATIONAL BANK OF ROMANIA
45
Real Wage and Labour Productivity in Manufacturing
180
previous year =100
2000=100
170
160
labour productivity
labour productivity
gross real wage (based on PPI)
gross real wage (based on PPI)
120
115
150
140
110
130
120
105
110
2007
2006
2005
2004
2003
100
2002
2007
2001
2006
2005
2004
2003
2002
2001
100
Source: National Institute of Statistics, National Bank of Romania calculations
NATIONAL BANK OF ROMANIA
46
Exchange Rate – Recent Developments and Outlook
 The nominal appreciation trend manifest over the past three
years came to a halt
 The RON exchange rate reverted to a trajectory compatible with
macroeconomic fundamentals, following the overappreciation at mid-2007
 The correction was faster and larger due to the increased risk aversion of
investors, caused by the US sub-prime mortgage crisis
 In spite of the unfavourable short-term impact on inflation,
exchange rate flexibility is an advantage, as it:
 Allows the avoidance of excessive accumulation of macroeconomic
imbalances which may generate crises
 Operates as a self-correcting mechanism of current imbalances, alleviating
the impact of external shocks
 Return to a nominal appreciation trend is sustainable only in the
context of productivity gains able of improving external
competitiveness
NATIONAL BANK OF ROMANIA
47
3.0
3.4
225
Jan.04
Jan.07
Jul.07
Jan.08
Jan.07
Jul.07
Jan.08
May
04*
Jul.04
Jul.06
235
Jul.06
245
Jan.06
255
Jan.06
265
Jul.05
275
Jul.05
HUNGARY
Jan.05
285
Jan.05
May04*
Jul.04
Jan.04
Jul.03
Jan.03
Jul.02
Jan.02
Jul.01
Jan.01
(local currency/EUR)
Jul.03
Jan.03
Jul.02
Jan.02
Jul.01
CZECH REPUBLIC
Jan.11
Jul.10
Jan.10
Jul.09
Jan.09
27
Jul.00
29
Jan.01
31
Jul.08
SLOVAKIA
Jan.00
33
Jul.00
35
Jan.00
Jan.08
Jul.07
Jan.07
Jul.06
Jan.06
Jul.05
Jan.05
37
Jan.08
Jan.08
Jul.07
Jan.07
Jul.06
Jan.06
Jul.05
Jan.05
Jan.04
May
04*
Jul.04
39
Jul.07
Jan.07
Jan.07*
Jul.06
Jan.06
Jul.05
Jan.05
Jul.04
Jan.04
46
44
42
40
38
36
34
32
May04*
Jul.04
Jan.04
Jul.03
Jan.03
Jul.02
Jan.02
Jul.01
Jan.01
Jul.00
Jan.00
25
Jul.03
Jan.03
Jul.03
Jan.03
Jul.02
Jan.02
Jul.01
Jan.01
Jul.00
Jan.00
Daily Nominal Exchange Rates
5.1
4.9
4.7
4.5
4.3
4.1
3.9
3.7
3.5
3.3
POLAND
4.2
ROMANIA
4.0
3.8
3.6
3.2
* Date of EU accession
Source: Eurostat, National Bank of Romania
NATIONAL BANK OF ROMANIA
48
Poland: Daily Nominal Exchange Rate
PLN/EUR
5.0
4.9
4.8
4.7
4.6
4.5
4.4
4.3
4.2
4.1
4.0
3.9
3.8
3.7
3.6
3.5
3.4
3.3
appreciation 27.3%
depreciation 19.2%
appreciation 13.7%
Jan.08
Jul.07
Jan.07
Jul.06
Jan.06
Jul.05
Jan.05
Jul.04
Jan.04
Jul.03
Jan.03
Jul.02
Jan.02
Jul.01
Jan.01
Jul.00
Jan.00
depreciation 9.3%
depreciation 8.6%
Source: Eurostat
NATIONAL BANK OF ROMANIA
49
Hungary: Daily Nominal Exchange Rate
HUF/EUR
290
depreciation 14%
280
appreciation
15.6%
appreciation
13.4%
appreciation 11%
depreciation 14%
270
260
250
240
Jan.08
Jul.07
Jan.07
Jul.06
Jan.06
Jul.05
Jan.05
Jul.04
Jan.04
Jul.03
Jan.03
Jul.02
Jan.02
Jul.01
Jan.01
Jul.00
Jan.00
230
Source: Eurostat
NATIONAL BANK OF ROMANIA
50
Romania: Daily Nominal Exchange Rate
RON/EUR
4.2
4.1
appreciation 21.4%
4.0
3.9
depreciation
7.8%
3.8
depreciation 17.5%
3.7
3.6
3.5
3.4
increased exchange rate
flexibility
3.3
3.2
appreciation 16.9%
3.1
Jan.11
Sep.10
May.10
Jan.10
Sep.09
May.09
Jan.09
Sep.08
May.08
Jan.08
Sep.07
May.07
Jan.07
Sep.06
May.06
Jan.06
Sep.05
May.05
Jan.05
Sep.04
May.04
Jan.04
Sep.03
May.03
Jan.03
3.0
Source: National Bank of Romania
NATIONAL BANK OF ROMANIA
51
Daily Nominal Exchange Rates
in Selected Central and East European Countries
(fixed-base indices)
120
28 Feb. 2003 =100
115
110
105
100
95
90
85
80
Czech Rep.
75
Mar.03
Sep.03
Mar.04
Hungary
Sep.04
Poland
Mar.05
Sep.05
Slovakia
Mar.06
Romania
Sep.06
Mar.07
Sep.07
Source: Eurostat, National Bank of Romania
NATIONAL BANK OF ROMANIA
52
Daily Nominal Exchange Rates
(local currency/EUR)
Dec.07
Jan.08
Jan.08
Nov.07
Oct.07
Dec.07
SLOVAKIA
34.5
Aug.07
3.5
Jan.08
25
Dec.07
3.6
Nov.07
26
Oct.07
3.7
Sep.07
27
Aug.07
3.8
Jul.07
28
Sep.07
POLAND
3.9
Jul.07
CZECH REPUBLIC
29
HUNGARY
265
260
34.0
255
33.5
250
33.0
245
Nov.07
Oct.07
Aug.07
Jul.07
Jan.08
Dec.07
Nov.07
Oct.07
Sep.07
Aug.07
Jul.07
Sep.07
240
32.5
ROMANIA
3.8
3.6
3.4
3.2
Feb.08
Jan.08
Dec.07
Nov.07
Oct.07
Sep.07
Source: Eurostat, National Bank of Romania
Aug.07
Jul.07
3.0
NATIONAL BANK OF ROMANIA
53
Real Exchange Rates vs. EUR*
of Selected Central and East European Countries
190
180
index, 2000=100
Czech Rep.
Hungary
Poland
Slovakia
Romania**
170
160
150
140
130
120
110
100
2003
2004
2005
2006
2007
2000
2001
2002
2003
2004
2005
2006
2007
2000
2001
2002
2003
2004
2005
2006
2007
2000
2001
2002
2003
2004
2005
2006
2007
2000
2001
2002
2003
2004
2005
2006
2007
90
* based on average annual nominal exchange rate and consumer price index; ** 2003=100
Source: Eurostat, National Institute of Statistics, National Bank of Romania
NATIONAL BANK OF ROMANIA
54
Pentagon of Key Factors Impacting the Exchange Rate
Comparisons between Romania, Czech Republic, Poland, Hungary
2007
2004
Nominal appreciation (+)/
Nominal depreciation (-)
Nominal appreciation (+)/
Nominal depreciation (-)
20
16
12
8
4
0
-4
-8
12
8
4
Inflation rate
(annual average, %)
0
Fiscal deficit
(% of GDP) Inflation rate
(annual average, %)
-4
-8
Productivity
(annual percentage
change)
Real gross wage
(annual percentage
change)
Romania
Fiscal deficit
(% of GDP)
Real gross wage
(annual percentage
change)
Productivity
(annual percentage change)
Czech Rep.
Poland
Hungary
Source: Eurostat, European Commission, IMF, websites of national statistics institutions
NATIONAL BANK OF ROMANIA
55
Fiscal Position
NATIONAL BANK OF ROMANIA
56
General Government Deficit /GDP
(according to ESA 95 methodology)
percent
-1.5
-1.5
-1.4
-1.9
-2.0
-2.9
-3.5
2007 (preliminary data): -2.4% (IMF Methodology)
-4.4
2000
2001
2002
2003
2004
2005
2006
2007*
*) target; EDP Notification, September 2007
Source: Ministry of Economy and Finance, National Institute of Statistics, European Commission
NATIONAL BANK OF ROMANIA
57
Public Debt
(ESA 95 methodology)
percent of GDP
percent of GDP
30
30
26.0
25
24.7
3.8
domestic public debt/GDP
25.0
foreign public debt/GDP
4.2
4.8
20
21.5
4.3
18.8
4.7
15
10
20
15.8
3.3
20.9
21.8
25
15
12.4
11.9
3.1
20.2
10
17.2
14.1
5
12.5
5
9.3
0
0
2000
2001
2002
2003
2004
2005
2006
2007*
*) target; EDP Notification, September 2007
Source: Ministry of Economy and Finance, National Bank of Romania, National Institute of Statistics
NATIONAL BANK OF ROMANIA
58
Monetary Data
NATIONAL BANK OF ROMANIA
59
NBR Sterilization Volume and the Balance
of the State Treasury Account
35
percent per annum
RON billion; average daily stock
35
deposit facility
CDs
deposit-taking operations
average interest rate on sterilization operations of NBR (right-hand scale)
balance of the state Treasury account
30
30
Jan.08
Nov.07
Sep.07
Jul.07
May.07
Mar.07
Jan.07
Nov.06
0
Sep.06
0
Jul.06
5
May.06
5
Mar.06
10
Jan.06
10
Nov.05
15
Sep.05
15
Jul.05
20
May.05
20
Mar.05
25
Jan.05
25
Source: National Bank of Romania
NATIONAL BANK OF ROMANIA
60
NBR Policy Rate and Inflation Rate
percent
10
8
6
4
2
0
real policy rate (%p.a.)
-2
NBR policy rate (% p.a.)
inflation rate (percentage change against the same period of previous year)
Dec.07
Sep.07
Jun.07
Mar.07
Dec.06
Sep.06
Jun.06
Mar.06
Dec.05
-4
Source: National Bank of Romania, National Institute of Statistics
NATIONAL BANK OF ROMANIA
61
Inflation Rate and Interest Rates
32
percent
percent
32
inflation rate (percentage change against
the same year-earlier period)
NBR policy rate
NBR average interest rate on stock of
sterilization operations (% p.a.)
Jan.08
Jul.07
0
Jan.07
0
Jul.06
4
Jan.06
4
Jul.05
8
Jan.05
8
Jul.04
12
Jan.08
Jan.04
12
Jul.07
16
Jan.07
16
Jul.06
20
Jan.06
20
Jul.05
24
Jan.05
24
Jul.04
28
Jan.04
28
inflation rate (percentage change against
the same year-earlier period)
average interest rate on RON-denominated loans to nonfinancial corporations and households (% p.a.)
average interest rate on RON-denominated time deposits
from non-financial corporations and households (% p.a.)
NBR policy rate: 9% starting with February 4, 2008
Source: National Bank of Romania, National Institute of Statistics
NATIONAL BANK OF ROMANIA
62
Interest Rates in the Banking System
percent per annum
Jan.08
Oct.07
0
Jul.07
0
Apr.07
5
Jan.07
5
Oct.06
10
Jul.06
10
Apr.06
15
Jan.06
15
Oct.05
20
Jul.05
20
Apr.05
25
Jan.05
25
Oct.04
30
Jul.04
30
Apr.04
35
Jan.04
35
new RON-denominated loans to non-financial corporations and households
NBR interest rate on flow of sterilization operations (deposit taking, CDs)
NBR policy rate
new RON-denominated time deposits from non-financial corporations and households
Source: National Bank of Romania
NATIONAL BANK OF ROMANIA
63
Loans to the Private Sector
real annual percentage change*
120
real annual percentage change*
RON-denominated loans
total
foreign currency-denominated loans
100
120
households
total
100
non-financial corporations & financial
corporations other than MFIs
80
80
Source: National Bank of Romania, National Institute of Statistics
Dec.07
Oct.07
Aug.07
Jun.07
Apr.07
Feb.07
Dec.06
Oct.06
Aug.06
Jun.06
Apr.06
Feb.06
Dec.05
Dec.07
Oct.07
Aug.07
Jun.07
Apr.07
Feb.07
0
Dec.06
0
Oct.06
20
Aug.06
20
Jun.06
40
Apr.06
40
Feb.06
60
Dec.05
60
*) based on CPI
NATIONAL BANK OF ROMANIA
64
Loans to the Private Sector
RON billion
RON billion
RON-denominated loans
households
non-financial corporations
Source: National Bank of Romania,
National Institute of Statistics
160
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
Dec.07
Sep.07
Jun.07
Mar.07
Dec.06
Sep.06
Jun.06
Mar.06
Dec.05
Dec.07
Sep.07
Jun.07
others*
Mar.07
Dec.06
Sep.06
Jun.06
foreign currencydenominated loans
Mar.06
160
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
Dec.05
(deflated by CPI, January 2008=100)
(in real terms)
*) insurance corporations, other financial intermediaries and financial auxiliaries
NATIONAL BANK OF ROMANIA
65
Loans to the Private Sector
90
RON-denominated loans
RON billion
80
non-financial corporations
households
70
others*
foreign currency-denominated loans
RON billion
non-financial corporations
households
others*
90
80
70
Source: National Bank of Romania,
National Institute of Statistics
Dec.07
Sep.07
Jun.07
Mar.07
0
Dec.06
0
Sep.06
10
Jun.06
10
Mar.06
20
Dec.05
20
Dec.07
30
Sep.07
30
Jun.07
40
Mar.07
40
Dec.06
50
Sep.06
50
Jun.06
60
Mar.06
60
Dec.05
(deflated by CPI, January 2008=100)
(in real terms)
*) insurance corporations, other financial intermediaries and financial auxiliaries
NATIONAL BANK OF ROMANIA
66
Loans to the Private Sector
(in real terms)
60
foreign currency-denominated loans
EUR billion
non-financial corporations
non-financial corporations
households
households
others*
others*
70
60
Source: National Bank of Romania,
National Institute of Statistics
Dec.07
Sep.07
Jun.07
Mar.07
Dec.06
Sep.06
0
Jun.06
0
Mar.06
10
Dec.05
10
Dec.07
20
Sep.07
20
Jun.07
30
Mar.07
30
Dec.06
40
Sep.06
40
Jun.06
50
Mar.06
50
Dec.05
(deflated by CPI, January 2008=100)
70
RON-denominated loans
RON billion
*) insurance corporations, other financial intermediaries and financial auxiliaries
NATIONAL BANK OF ROMANIA
67
Loans to Households
(in real terms)
80
RON billion
RON billion
short term
medium term
long term
70
foreign currencydenominated loans
60
70
60
Dec.07
Sep.07
Jun.07
Mar.07
Dec.06
Sep.06
0
Jun.06
0
Mar.06
10
Dec.05
10
Dec.07
20
Sep.07
20
Jun.07
30
Mar.07
30
Dec.06
40
Sep.06
40
Jun.06
50
Mar.06
50
Dec.05
(deflated by CPI, January 2008=100)
RON-denominated loans
80
Source: National Bank of Romania, National Institute of Statistics
NATIONAL BANK OF ROMANIA
68
Loans to Households
80
RON billion
consumer loans
housing loans
other loans
RON
EUR
other currencies
80
70
Jan.08
0
Dec.07
0
Nov.07
10
Oct.07
10
Sep.07
20
Aug.07
20
Jul.07
30
Jun.07
30
May.07
40
Apr.07
40
Mar.07
50
Feb.07
50
Jan.07
60
Jul.07
Aug.07
Sep.07
Oct.07
Nov.07
Dec.07
Jan.08
60
Jan.07
Feb.07
Mar.07
Apr.07
May.07
Jun.07
(deflated by CPI, January 2008=100)
70
(in real terms)
RON billion
Source: National Bank of Romania, National Institute of Statistics
NATIONAL BANK OF ROMANIA
69
Private Sector Deposits
(in real terms)
90
foreign exchange-denominated deposits
RON billion
RON billion
corporations*
80
households
corporations*
90
80
households
Dec.07
Sep.07
0
Jun.07
0
Mar.07
10
Dec.06
10
Sep.06
20
Jun.06
20
Mar.06
30
Dec.05
30
Dec.07
40
Sep.07
40
Jun.07
50
Mar.07
50
Dec.06
60
Sep.06
60
Jun.06
70
Mar.06
70
Dec.05
(deflated by CPI, January 2008=100)
RON-denominated deposits
*) non-financial corporations and financial corporations other than MFIs
Source: National Bank of Romania, National Institute of Statistics
NATIONAL BANK OF ROMANIA
70
Financial System
NATIONAL BANK OF ROMANIA
71
Financial Intermediation*
40
percent
35
loans to non-financial corporations a.o.
loans to households
30
foreign currency-denominated loans
RON-denominated loans
37.9
26.8
19.6
20.6
25
20.8
20
15.4
16.6
15
10
13.4
11.8
11.4
10.2
18.3
5
4.8
12.7
6.4
7.4
9.4
11.4
17.3
14.1
0
2004
2005
Source: National Institute of Statistics, National Bank of Romania
2006
2007
forecast
*) loans to the private sector / GDP
NATIONAL BANK OF ROMANIA
72
Share of Majority State-owned
Banks in Total Credit Institutions
percent
100
non-government credit
90
total assets
80
non-bank clients' deposits
70
share in total banks (%); December 2007
Total Non- Nonassets govt. bank
credit clients'
deposits
Banks with
majority foreign
capital
Banks with
majority domestic
private capital
60
50
40
30
Banks with
majority domestic
state-owned
capital
20
10
88.2
83.3
7.8
8.2
10.6
4.9
3.6
6.2
Dec.07
Dec.06
Dec.05
Dec.03
Dec.02
Dec.00
Dec.98
Dec.91
0
87.3
Source: National Bank of Romania
NATIONAL BANK OF ROMANIA
73
Banking Indicators
80
percent
investment and loans with other
banks/ total assets
70
loans granted to clients/ total
attracted and borrowed sources
60
loans granted to clients/ total assets
50
40
30
Dec.07
Sep.07
Dec.06
Dec.05
Dec.04
Dec.03
Dec.02
Dec.01
Dec.00
Dec.99
Dec.98
20
Source: National Bank of Romania
NATIONAL BANK OF ROMANIA
74
Analysis Ratios for the Banking System
35
30
percent
percent
28.2
253.6
21.2 20.6
17.9
250
21.1
18.1
20
21.8
15
12.5
10.3
10
18.3
200
14.0
15.6
15.6
12.7
10.2 10.3
31.2
5
3.3
0
-5
300
25.0
23.8
25
2.7
2.0
350
2.0
2.1
1.4
1.5
2.9
150
12.7
100
10.4
50
2.6
0
1.0
solvency ratio 1
(>12%)
-50
-10
-100
-15
-150
-15.3
ROE
(net income /
total equity)
Dec.07
Sep.07
Dec.06
Dec.05
Dec.04
Dec.03
Dec.02
Dec.01
Dec.00
-200
Dec.99
-20
Dec.98
past-due and
doubtful claims /
own equity
(right-side scale)
Source: National Bank of Romania
NATIONAL BANK OF ROMANIA
75
Euro Adoption
NATIONAL BANK OF ROMANIA
76
Maastricht Criteria - 2007
(Nominal Convergence Indicators)
Maastricht
Criteria
Czech
Republic
Hungary
Poland
Romania
2.8
8.0
2.5
4.84
4.28
6.74
5.48
7.271)
+ / -15 percent
+7.9 /-3.4
+5.2/-9.0
+7.4 /-6.6
+10.2 / -6.9
General government deficit***
(percent of GDP)
below 3 percent
3.4
6.4
2.7
2.9
Government debt***
(percent of GDP)
below 60 percent
30.2
66.1
46.8
11.9
Nominal Convergence Indicators
Inflation rate
(percent, annual average)
Long-term interest rates
(percent per annum)
<1.5 pp above the three best
performing Member States
(3 percent*)
<2 pp above the three best
performing Member States
(6.4 percent*)
Exchange rate (vs. euro)
(maximum percentage change
vs. 2-year average**)
1) 19 November 2007 issue of government securities
*) Reference level according to ECB's Convergence Report, May 2007.
**) The period 2006-2007 was considered, as the fulfilment of this criterion is assessed depending upon exchange rate
stability over the past 2 years.
***) 2007 forecast; according to ESA95 methodology
Source: ECB, Eurostat, National Institute of Statistics, National Bank of Romania, European Commission
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Volatility of the Nominal Leu/Euro Exchange Rate
30
percent
maximum appreciation vs. daily average
maximum depreciation vs. daily average
20
10
±15%
0
-10
-20
-30
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
Source: National Bank of Romania
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Real Convergence Indicators
(GDP/capita)
EUR
PPS*
2000
2003
2006
2007p
2000
2003
2006
2007p
23,100
24,800
27,800
29,100
21,900
23,500
26,300
27,600
Bulgaria
1,700
2,300
3,300
3,800
5,300
6,700
8,600
9,500
Czech Rep.
6,000
7,900
11,100
12,200
13,000
15,200
18,500
20,100
Poland
4,900
5,000
7,100
8,000
9,200
10,100
12,300
13,500
Hungary
5,100
7,400
8,900
10,200
10,700
13,100
15,300
16,100
Romania
1,795
2,421
4,529
5,439
4,900
6,500
9,100
10,000
7.8
9.8
16.3
18.7
22.4
27.7
34.6
36.2
EU-15
% in EU-15
*) Purchasing Power Standards
p) projection
Source: Eurostat, National Institute of Statistics, National Bank of Romania
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Post-Accession Period:
Challenges to Continuation of Disinflation
 Pressures exerted by movements in relative prices
 Further adjustments of administered prices
(especially energy price)
 Still strong domestic demand
 External shocks (increases in oil and commodity
prices on external markets)
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Euro Adoption (1)
 1. Prior to ERM II entry
 Consolidation of low inflation
(sustainable disinflation)
 Establishment of domestic market for long-term capital
and interest rate convergence
 Relative stability of the RON exchange rate
(amid full convertibility) around the long-term
equilibrium level (sustainable exchange rate)
 Fostering of structural reforms
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Euro Adoption (2)
 2. Timing of ERM II entry is set for 2012:
 In order to ensure a period needed to:
– fulfill nominal convergence criteria
– achieve substantial progress in real convergence
 3. Euro zone entry expected for 2014
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ERM II Entry and Inflation Targeting
 Inflation targeting strategy will be kept
in place until ERM II entry at least
 Cohabitation between inflation targeting and
an explicit exchange rate target is challenging
 Inflation targeting ensures gradual achievement
of the Maastricht criteria and is supportive of real
convergence
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Economic Relations with the USA
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Foreign Trade by Group of Countries
at end-November 2007
EU
72%
Imports
Exports
EU
72%
USA
1%
USA
2%
other
26%
other
27%
Source: National Institute of Statistics
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Trade Balance with USA
EUR million
EUR million
1,200
1,200
Imports cif
Exports fob
1,000
1,000
800
800
600
600
400
400
200
200
0
Source: National Institute of Statistics
2007*
2006
2005
2004
2003
2002
2001
2000
2007*
2006
2005
2004
2003
2002
2001
2000
0
*) end-November
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Foreign Trade with USA
by Group of Commodities
Exports
100%
80%
livestock, animal and
vegetal products, food,
beverages and tobacco
mineral products
60%
textiles, wearing apparel,
footwear
Imports
base metals
40%
machinery, equipment
and transport means
20%
chemical and plastic
products
other
0%
2003
2004
2005
2006
2003
2004
2005
2006
Source: National Institute of Statistics
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Top-Ten Countries by Investment
in Joint-Stock Companies in Romania at end-November, 2007
- share of total subscribed capital (percent) 18.4
Netherlands
12.6
Austria
10.2
Germany
10.0
France
5.0
Cyprus
4.6
Italy
3.8
USA
United Kingdom
Greece
Netherlands Antilles
3.5
3.3
3.0
Source: Trade Register
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Foreign Equity in Joint-Stock Companies in Romania
by Group of Countries at end-November 2007
other
12%
USA
4%
EU
84%
Source: Trade Register
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