2003-09-12
In July 2003, the Current Account balance of the Balance of Payments was negative and stood at LTL 180.4 million. The Current Account Deficit (CAD), compared with June 2003, contracted by LTL 34.3 million, and compared with July 2002, increased by LTL 62.5 million. The CAD decrease was caused by a lower deficit of foreign trade balance and increased positive balance of services. In July 2003, according to the Statistics Lithuania, merchandise exports reduced by 2.1 per cent compared with June 2003, whereas merchandise imports increased by 0.9 per cent. Merchandise exports in July 2003, compared with the same period last year, expanded by 11.9 per cent and imports rose by 6.3 per cent.
In July 2003, exports of services increased by 9.4 per cent and imports of services rose by 4.6 per cent compared with June 2003. The positive balance of services comprised the amount of LTL 171.7 million (in June this indicator was LTL 144.9 million). Exports of services, compared with July 2002, dropped by 14.3 per cent and imports of services shrank by 7.6 per cent. In the period under review, the positive balance of services curtailed by LTL 53.2 million.
In July 2003, similar to June 2003, Lithuania’s income on investment abroad exceeded disbursements to non-residents (for their investment in Lithuania). Besides, a rather large positive balance of the compensation of employees remained. Therefore, income balance of July was positive (LTL 32.2 million). Total balance of income improved by LTL 41.5 million, compared with July 2002.
In July 2003, the balance of current transfers reduced by LTL 27.6 million, compared with June 2003, and reached the amount of LTL 58.3 million.
In July 2003, the balance of Capital and Financial Account was positive and stood at LTL 216.5 million. In July, foreign assets of national economic entities (financial claims to non-residents), excluding reserve assets, grew by LTL 18 million, and international financial liabilities increased by LTL 136.5 million. In July, the balance of capital transfers was equal to LTL 2.2 million.
In July 2003, foreign assets of Lithuania’s commercial banks increased by LTL 91.2 million. The growth of short-term foreign assets of commercial banks was the most noticeable. Foreign assets of other sectors curtailed by LTL 73.2 million.
In July, the flow of foreign direct investment after the repayment to direct foreign investors for their loans received earlier (these loans were refinanced by commercial banks of the country), was negative and equal to ?LTL 165.4 million.
In July, the investment portfolio of non-residents increased by LTL 0.5 million. During the month under review, non-residents acquired equity securities for the amount of LTL 23.4 million, but the debt securities issued in Lithuania and owned by non-residents curtailed by LTL 22.9 million. In July, other investment of non-residents increased by LTL 321.5 million. This increment was caused by loans of commercial banks obtained from non-residents.
In July 2003, the negative flow of reserve assets amounted in the Balance of Payments to LTL 95.9 million. The main reason to account for such a decrease of this indicator was the fact that the amount of foreign currency bought by commercial banks from the Bank of Lithuania exceeded the sum sold by LTL 131.2 million. Operations of the Bank of Lithuania with central government institutions reduced the reserves by LTL 30 million. Repurchase agreements made with non-residents and net income of the Bank of Lithuania earned on investment in foreign currency increased reserve assets by LTL 60.8 million.