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Credit stood unchanged in May, despite increase in monetary base.
submited on 07.06.2005 in category Fiscal affairs | Monetary policy | Macroeconomic developments | Political stability | Fiscal affairs | Privatisation | Macroeconomic developments
submited on 07.06.2005 in category Fiscal affairs | Monetary policy | Macroeconomic developments | Political stability | Fiscal affairs | Privatisation | Macroeconomic developments
Credit to private sector remains at BGN 16,421 by end May, revealing stabilization of banking lending.
The M3 aggregate grew by 2.1% to BGN 22,490 million; most of the expansion was due to increase in monetary base. The latter grew by BGN 238 m in May, or 3.5% up from April. The fiscal policy continued to be restrictive, by piling up another BGN 256 million to the fiscal reserve held at the BNB. In line with that, monetary multiplier, or the ratio of M3 to monetary base, fell further down to 3.21 from 3.41 in end-March and 3.25 in end-April, to illustrate the overall monetary contraction of the economy.
Fiscal reserve held in the BNB grew by 5.5% in April to reach BGN 4,870 million by 28th of May. The coverage ratio of broad money (M3) with BNB external assets (or the assets of the ‘currency board’) grew by 1.8% in May and stood at 0.618.
The M3 aggregate grew by 2.1% to BGN 22,490 million; most of the expansion was due to increase in monetary base. The latter grew by BGN 238 m in May, or 3.5% up from April. The fiscal policy continued to be restrictive, by piling up another BGN 256 million to the fiscal reserve held at the BNB. In line with that, monetary multiplier, or the ratio of M3 to monetary base, fell further down to 3.21 from 3.41 in end-March and 3.25 in end-April, to illustrate the overall monetary contraction of the economy.
Fiscal reserve held in the BNB grew by 5.5% in April to reach BGN 4,870 million by 28th of May. The coverage ratio of broad money (M3) with BNB external assets (or the assets of the ‘currency board’) grew by 1.8% in May and stood at 0.618.
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