This year's permissible growth rate of bank placements, which does not entail purchasing compulsory CNB bills, is to remain at 12% relative to the end of 2006. However, the amendments to the Decision on the Purchase of Compulsory CNB Bills (dated 5 June 2007) provide for separating the calculation base for purchasing compulsory CNB bills into two base components and their separate monitoring. The increase in household and corporate placements will thus be monitored based on one base component, while the increase in guarantees, letters of credit, bills of exchange and other off-balance sheet assets will be monitored based on the other base component. The separate monitoring of the two base components was introduced due to a higher than projected increase in bank household and corporate placements, coupled by a decrease in the said off-balance sheet items.

The separation of the calculation base for the purchase of CNB bills will provide for an even-handed monitoring of the increase in both balance and off-balance sheet placements and streamline the efforts to achieve the targeted 12% placement growth in 2007.

The said amendments to the Decision on the Purchase of Compulsory CNB Bills are to take effect on 20 June 2007. Banks are required to submit the first reports pursuant to this Decision to the CNB on 20 June 2007, the date when they make calculations of compulsory CNB bills to be purchased for the calculation period from 1 January to 31 May 2007 relative to 31 December 2006.