2006-11-28
At the end of October the annual growth rate of broad money went slow to 23.4 per cent.
At the end of October 2006, M3 amounted to LTL 33.1 billion, decreasing by LTL 367.3 million (a drop of LTL 368.2 million as a result of transactions) over one month. The annual growth rate of M3 was 23.4 per cent at the end of October. M2, which accounts for the largest part of M3, went up by LTL 0.9 million over the month (a hike of LTL 3.4 million as a result of transactions) to make up LTL 32.6 billion at the end of October. The annual growth rate of M2 was 22.8 per cent at the end of October. M1 increased by LTL 80.5 million (a surge of LTL 82.1 million as a result of transactions) over one month to make up LTL 22.5 billion at the end of October, a hike of 23.7 per cent over twelve months.
A decrease in M3 in October as a result of transactions was driven by a slump of LTL 371.6 million in debt securities with maturity of up to 2 years, a fall of LTL 62.1 million in deposits with agreed maturity of up to 2 years, and a contraction of LTL 16.7 million in deposits redeemable at a period of notice of up to 3 months. However, M3 grew as a result of a rise of LTL 50.6 million in currency in circulation and a hike of LTL 31.5 million in overnight deposits.
In October, the net external assets of MFIs dropped by LTL 1.1 billion as a result of transactions, while domestic credit saw an increase of LTL 1.2 billion. The annual growth rates of these indicators were different at the end of October. Net external assets shrank by 84.8 per cent over the year, while domestic credit grew by 49.3 per cent. In October, the slump in the net external assets of MFIs as a result of transactions was driven by a decrease of LTL 1.3 billion in the net external assets of other MFIs
The increase in domestic credit in October was driven by a rise of LTL 1.4 billion in MFIs loans to other residents as a result of transactions. The annual growth rate of these loans made up 54.1 per cent at the end of October. Loans by other MFIs to non-financial corporations went up by LTL 659.9 million over one month while their annual growth rate made up 46.4 per cent in October. As a result of transactions, loans to households increased by LTL 622.4 million over the month, a year-on-year growth of 75.3 per cent at the end of October. Consumer credit to households rose by LTL 52.3 million, lending for house purchase grew by LTL 380.9 million, and other lending went up by LTL 189.2 million over the month. The annual growth rate of lending for house purchase was 67.8 per cent at the end of October.
Central government deposits decreased by LTL 93.7 million as a result of transactions, but at the end of October they went down by 1.8 per cent year-on-year. Longer-term financial liabilities of MFIs soared by LTL 166.1 million over the month, a year-on-year increase of 40.3 per cent. In October, the increase in longer-term financial liabilities of MFIs was driven by a rise of LTL 180.8 million in capital and reserves, as a result of transactions, and a surge of LTL 0.7 million in deposits with agreed maturity over 2 years. However, the above liabilities contracted as a result of a drop of LTL 15.4 million in debt securities over 2 years.