Government savings in 1991 amounted to 420 billion pesos. Government investment amounted to 343 billion pesos (Ig), about 77 billion less than savings. In that year, the government repaid 20 billion in foreign debt _(dFg),_ and it raised 193 billion in non-bank financing _(dBgp)._ In 1991, the government had a net outflow of 595 billion with the Central Bank _(dCGcb),_ or 3.1 percent of GDP. Also, it borrowed 160 billion from the BROU _(dCGab),_ and 186 billion from the rest ot the banking system _(dCGob)._

# **The** Central **Bank**

Current revenues of the Central Bank consist of interest receipts on banks' credit, and interest on foreign reserves. Total revenues amounted to 76.8 billion pesos. In 1991 the Central Bank current paid 189 billion in interest payments on foreign debt _(iF*Fcb),_ and 88.7 billion on expenditures on monetary regulation bills. The latter is shown in the FOF as a transfer from the Central Gov ermnent to the Private Sector _(P&Lcb)._ In computing interest payments on reserves, 221 billion to BROU, and 24 billion to OFI, we assumed that the Central Bank paid almost market interest rates on its reserve requirements. The net result, the quasi-fiscal deficit of the Central Bank, amounted to 446 billion pesos in 1991.

In the capital account, the liabilities of the Central Bank are composed of savings _(Scb),_ the net issue of foreign debt _(dFcb)--a_ net repayment of 1321 billion pesos--and the net increase in the monetary base (currency in circulation 431 billion _(dCU),_ and reserve requirements 92.7 billion _(dRR))._ In order to maintain consistency for the macro-economy, the figure for currency in circulation, 431 billion, represents currency outside of the banking system, and not currency outside of the Central Bank. In 1991 the paid-in capital of the Central Bank was zero. Total change in liabilities in 1991 was -1243 billion pesos.

On the assets side, the Central Banks has a net repayments of 504.8 billion from the government _(dCGcb),_ net credit to the Private Sector, mostly para-statal enterprises, of 43.5 billion _(dCPcb),_ net repayments of 199 from BROU _(dLNab),_ and 1.2 from OFI _(dLNob),_ and a net drop in foreign exchange reserves of 549.5 billion _(dREScb)._ Net other assets of the Central Bank are 58.3 billion _(dNob)._

# **_The_ BROU**

The only data available to us were published BROU end-of-year balance sheets. The profit and loss statement for the BROU was not available. Therefore, all the curient account flows for the BROU had to be estimated. For interest payments we used last year's stocks, and current interest rates. Thus, the BROU receives 3.6 billion from government interest payments, 1463 billion in interest receipts from domestic private credits _(iC*CPab)._ For simplicity, and because we did not have the information, we assumed that interest on securities is zero. Other estimated receipts of the BROU are 221 billion in receipts on reserves from the Central Bank _(iR*RRab),_ and 22.6 billion on receipts on forcign deposits _(iRESab)._ The latter was estimated that the BROU was paid LIBOR rates on its international reserves.

The BROU pays 28 billion in net non-interest income. This includes operating expenses and payments of taxes and dividends, minus fees & commissions and extraordinary income. The BROU pays depositors 1398.5 billion _(iD*DPab)._ This includes demand, saving and time and other deposits. We 33