Romania's central lender grants credits worth lei 49bn to banks in October

Banks in Romania borrowed a total 49 billion lei (13 billion euros) in October from the country's central lender (BNR) by means of its lombard credit, a sum 28 times higher compared to the amount taken between January and September 2008, according to BNR data.

Credit institutions in Romania favored the lombard credit at a rate of 14.25 percent per year after interest rates on the interbank market soared as high as 100 percent in some days, during the so-called speculative attack on the national currency, the leu.

The annual rate for the lombard credit, of 14.25 percent, is 4 percentage points higher than the benchmark rate on the market, and banks offer state securities as guarantees for the loans.

Banks borrowed 20 million lei through lombard credits in September, while the total value of the loans stood at 1.75 billion lei from January to September.

Deposits made by lenders at BNR in October were almost five times lower in volume compared to the previous month, of only 2.13 billion lei, at a rate of 6.25 percent per year. 

BNR pumped an average 3.5 billion lei in October on the interbank market through the lombard credit and swap operations, according to the central bank vice-governor Cristian Popa.

NewsIn